Europe to outperform US in recovery: Williamson-Jones

Higher exposure to cyclical industries gives Europe the investment edge over the US, according to BlackRock Global Equity fund manager Andrew Williamson-Jones.

The manager says should investors believe in the global recovery story, European stocks will outperform their US counterparts. "The stock markets of Europe are more exposed to so-called cyclical industries which in a recovery perform better than defensive industries, which make up a greater proportion of the US stock market," Williamson-Jones says. "In a downturn these businesses are hit hard, but in recovery they can be very effective investments as customers return and as confidence and valuations recover." The fund manager says the US stockmarket has a greater proportion of defe...