Why investors should watch out for stock market risk

ON EUROPE

Although political risk has settled in Europe, the risk level of the stock market is increasing warns F&C's Mark Nichols.

European fund managers could be forgiven for having a slightly giddy feeling. We have travelled from universal despair to seeing consensual optimism among investors in the region over the last couple of years. Through much of 2011 and 2012, the most oft-asked question was whether or not the political experiment had failed and whether the euro currency would persist. Through 2013 and 2014 it has become consensus to accept that the crisis is over and that Europe is moving headlong into a recovery. Questions now tend to focus more on what kind of growth we can expect from domestic Eur...