European growth equities on the up

The economic upturn has become a reality as markets are in recovery phases so European stocks offer attractive potential, says Reto Stiffler, Fund Manager, Julius Baer Europe Growth Stock Fund

Stiffler says that a look at the past shows European stock markets fare very well in recovery phases – much better than other markets and adds that, in the current environment, there are several reasons why investors should look at Europe.
 
“Inflation is likely to remain between 1 per cent and 2 per cent in the coming quarters, an ideal environment for equities,” says Stiffler. “Although emerging markets have continued to pull in front, their growth is likely to lead to interest rate rises as some Asian economies are already growing above their potential again. Europe is still far away from this scenario, creating upside potential for investors.
 
...