Page backs world-class firms in unloved Europe

The LVAM manager says stocks are cheap historically and running healthy yields

Slowing growth in Europe will not prevent companies in the region delivering growth and yields of 4%, according to Mark Page at LV. Page, fund manager of the LV= European Growth ex UK fund, said European stocks looked cheap both relative to their historic performance and to other countries. Page quoted one year out smoothed 10-year earnings, which put Europe on 15x, compared to the US on 23x and Asia on 22x. The market is also running at a healthy yield, close to 4%. Corporates are generating a lot of cash, and Page said the yield is sustainable. Page expects some ebb and flow in...