Sarasin's Whitehead: Europe is more compelling than US as valuations fall

Europe is beginning to look attractive again following sharp falls in the euro and the region's stock markets, according to Sarasin's Mark Whitehead.

So far this year, the manager of the £181m Global Equity Income fund has been increasing US exposure at the expense of his European holdings, but believes now could be the time to reverse these weightings. “We are looking at the European equity market again as it is beginning to look pretty cheap. It is difficult to know how events will play out in Europe, but the Eurostoxx 50 is trading on a P/E of just under nine, so that looks pretty interesting,” he says. Whitehead has reduced his holdings in Europe this year by around 10%, putting the money into US stocks. He has around 35% in Eu...