SPDR's Chesworth recommends short-term defensive bias in Europe amid political risk

Cyclical play at the end of the year

SPDR's Rebecca Chesworth has said it is important for investors to take advantage of reflation in Europe, but warned in the short term a defensive bias was necessary.

Speaking to Investment Week, the head of ETF equity strategies for EMEA (pictured) highlighted the improvement in earnings forecasts and the increase in inflation as reasons European equities will be strong, but added since value sectors had outperformed since September last year it was important to wait until the results of the European elections to move back in. "Many think leader of the National Front Marine Le Pen will not win, but we said that about Brexit and about [Trump winning] the US election. The fact is she can win and could propose to leave the euro or the European Union," s...