Five post-crash bets for the road ahead
25 Aug 15
Industry experts come together and select their best investment calls for the post-crash environment.
Europe
Despite sluggish economic growth and coming late to the quantitative easing table, the eurozone is still widely viewed as the most stable of the global equity markets.
“August is one of the most volatile months of the year, and we have got rid of one of the biggest risks of the year in Greece,” said Willis.
“Earnings for corporates with Chinese and emerging markets exposure are looking quite weak, but for domestically exposed and service companies within Europe the earnings outlook is looking pretty robust.
“The economic pick-up is not as strong as we would like and is not helped by the euro gain versus the dollar, but everyone has a lot of faith in Mario Draghi. The recovery is not the best we have ever seen, but at least it is consistent, and we will be topping up our European exposure.”
However, regarding potential risks going forward, McDermott issued a caveat.
He said: “The Greece stand-off is over for now, but it is not gone. I do not think that they will pay their debt, and the issue will continue to bubble under the surface.”
Funds owned: (Willis) FP Crux European Special Situations, JO Hambro Continental European, Verrazano European Opportunities
Tags: Bonds | China | Investment Strategy
