Peripherals still offer compelling opportunities

ON EUROPE

Schroders' Rory Bateman says investors should not disregard peripheral economies altogether.

There has been a lot of negative newsflow about Europe recently, but our view is investor fear creates opportunities. A combination of the Greek sovereign crisis, the ending of QE2 in the US and rising emerging market risks, leads us to believe the recent sell off in European equities offers an attractive entry point. Within Europe, the emergence of a ‘two-speed’ economy – where core Europe continues to perform well, while peripheral countries struggle against a backdrop of austerity – naturally prompts a focus on robust, global franchises within core Europe. With these nations proving t...