Things seem to be “falling into place” for Europe, Christine Hurtsellers, chief investment officer of fixed income at ING U.S. Investment Management, said during a media briefing. “It’s all about rate of change, and it does appear to be stabilizing,” she added. “Markets are all about rate of change.”
There are always risks in Europe, but the time to be underweight in equities has passed, Paul Zemsky, chief investment officer of ING Investment Management’s Multi-Asset Strategies and Solutions Group (MASS). “We do not anticipate going underweight in Europe for awhile,” he said. “We don’t think anyone should be underweight in that part of the world anymore.”
The fiscal drag is declining and markets are adjusting, presenting a more optimistic view of Europe going into 2013, Zemsky added.
U.S. investors remain reluctant to invest in equities and have shifted to bonds following the economic downturn because they were “traumatized by portfolio losses” during the recession, Zemsky said.
Hurtsellers said China should also surprise on the upside in the coming year. In the next three months, emerging markets pose the best opportunity, she added.
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