Flows into equities will increase as risk aversion decreases

ON EUROPE

BlackRock's Alister Hibbert discusses why 2011 will be a good year for European equities over cash and bonds.

Despite ongoing concerns in the periphery, which Europe is committed to resolving, the continent remains the seat of some of the market’s highest quality stocks that are trading at attractive valuations relative to history. Coupled with material exposure to growth generated by EMs, the European story is an exciting opportunity. Despite significant volatility during Q1, the market had recovered to just above its starting levels by the end of March. Relative to bonds, equities are at the low end of their 20-year range, with many companies’ equities still yielding more than their corporate ...