European shares look cheap and are well placed, according to Parry. He added that the political risk is overstated in Europe, but is understated in the U.S.
“I do look at the U.S. and it’s definitely viewing all its prospects through rose-tinted glasses,” he said.
“The revelations over the weekend about Trump accusing Obama of wiretapping with no evidence, I think these are all quite worrying signals about the behavior of the leader of the Free World and actually there seems to be no discount whatsoever for any political risk in America, whereas there definitely is a discount in Europe for political risk.”
Parry’s comment echoed earlier similar statements from Alex Dryden, global market strategist at JPMorgan, made last week.
“It’s the political risk that seems to put a lot of the investors off,” he told CNBC’s Squawk Box on Thursday.
“They look at the busy political calendar. We’ve got French, we’ve got German, we’ve got Dutch, we might even have Italian elections by the end of the year, so people have to be able to stomach that political volatility when getting into European equities.”
