Eisinger: Europe is already in recession

Janus' US specialist John Eisinger is steering clear of cyclicals and financials on eurozone contagion fears, adding he believes Europe is already in recession.

The manager of the £709mn US All Cap Growth fund warned as the threat of recession continues to impact global markets, investors should stay clear of financials despite their attractive valuations. "Europe is in recession, despite what many commentators say, and we will not see any resolution in stock prices until we see a resolution in the European sovereign crisis," he said. Eisinger is holding an underweight to financials as although he said they represent "the cheapest area in the market by far", they are highly correlated to European institutions. "It is essential to keep your...