Europe

As the eurozone sinks deeper into economic malaise, there is a danger of further unrest in Europe. This is highlighted by the growth in popularity of anti-immigration, right wing parties. Le Pen leads in the polls in France, and in the UK UKIP is obviously doing well. However, Europe is cheap and Draghi will do whatever he can to drive markets higher. Europe has a universe of 3,000 stocks, so there are plenty of opportunities for a good bottom-up fund manager - returns will improve if the focus towards fundamentals continues and I am seeing early signs of that. But on a one-year view I am positive on Europe because of expected QE.

Chelsea Selection or Elite Rated*: BlackRock Continental European and Threadneedle European Select

*by fundcalibre.com