Rathbones' CIO: Value in European equities is misleading

Rathbones' chief investment officer Julian Chillingworth has labelled the apparent value in European equities ‘misleading', claiming the region is in for another year of anaemic growth.

"With the eurozone's significant financial and political limitations, there is little room for action," he said. "Although Angela Merkel will now shift her attention to the wider eurozone after the German election, there will only be a limited reduction in austerity for the peripheral economies." While some investors believe European equities are trading at a 25%-30% discount to the US, posing a compelling value investment opportunity, the CIO called this argument ‘misleading'. He said: "World-class companies with exposure to global economic growth are generally at similar valuations ...