Sanjay Joshi, head of fixed income at wealth management firm London & Capital, looks at whether the ECB's plans are enough to provide some stability to the eurozone and describes what action he would need to see before investing in peripheral nations.
Super Mario's bond-buying scheme has been a welcome shot of adrenaline to the system. London & Capital's house view is that while there has been an increase in weighting in European assets, the overall position is still underweight. The bias is towards the core, with a few stronger peripheral names with global footprints. We are impatient to add to peripherals but need further strong action. Overall, we remain biased towards US stocks and bonds in addition to EM fixed income. The Draghi plan has undoubtedly provided some stability to the system - consequently averting the tail-risk, ...
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