Head - EMEA Investment Strategy
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With Brexit uncertainty resolved, vaccine rollout accelerating, and fiscal and monetary support ongoing, the outlook for the UK and Europe is improving. We see regional equity valuations as attractive, while ownership levels are low.
The first part of this note considers in more detail the three broad reasons for our bullish outlook:
Firstly, the five-year Brexit uncertainty is over. Further trade deals lie ahead for both the EU and the UK.
Secondly, the region’s economies are expected to recover in 2021, with growth momentum rising as vaccines are rolled out. Policy support is expected to outlast the pandemic.
Thirdly, valuations are attractive and ownership levels are low.
The second part of this note summarises eight specific areas of investment opportunity in more detail. Within equity, we examine “COVID cyclicals,” value, midcaps, dividend growers, and alternative energy.
Within fixed income, we consider high yield corporate bonds, and both the euro and sterling in currencies.