Investors looking to make the most of the improving economic environment in continental Europe should take a strategic approach to the market after this year’s surge in price and swift move higher in valuations. Worries about Greece will continue to bubble away, but this should not put investors off European equities, but instead it should encourage a greater focus on earnings. The parts of the equity market that are more sensitive to the economic cycle are likely to see the strongest revenue growth against an improving economic backdrop.
Kerry Craig is global market strategist of JP Morgan Asset Management
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