As European equity markets rebound, Annabelle Williams assesses the potential challenges to the recovery and asks how managers are playing the rally - while still protecting their portfolios.
The past two years have been a tough time for equity investing in Europe. As a question mark hung over the future of the 17-nation monetary union, and the seemingly insurmountable debt problems of the peripheral nations required regular political intervention, investors shied away from the region. Some managers argued Europe’s markets were trading at unfairly low valuations, with any further bad news already priced in. But sentiment remained negative, and the EuroStoxx 50 steadily declined to a low of 2,068 in June 2012, down from 3,008 in May 2011. However, the tide began to turn las...
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