Europe presents attractive opportunities for investors

Pictet Asset Management's Tomás Pinto

Europe's robust economic recovery and improving corporate fundamentals present an attractive opportunity to invest in the region's stocks.

There are a number of reasons to be optimistic. Europe's external imbalances have improved as cost cutting and higher productivity allowed the region to boost its global share of exports. Growing corporate margins and rising employment are creating a virtuous circle of higher local demand and economic output. Many European banks are in better shape than they have been for years, with capital adequacy and leverage ratios above what is required by regulators. All of this should create a buffer that would allow the economy to cope with any reduction in monetary stimulus from the European Centr...