Is Europe next in line for a rally?

EUROPE

Olly Russ, fund manager at Argonaut Capital Partners, asks if Europe is following in the footsteps of the US to begin an earnings upgrade cycle.

Europe is back, like ballroom dancing. Having been for some time something of a pariah asset class, regularly featuring among the bottom five selling IMA sectors, global investor appetite for the region seems to have revived. Of course, the reasons for the avoidance of European exposure have been well rehearsed over the last few years. The eurozone crisis was separate from, but linked to, the credit crunch. Europe, however, managed to add a whole new level to the crisis, which was largely self-inflicted. The US did not suffer from this second wave of financial turmoil, which has led i...