At the moment, the biggest worry for investors in Europe is the uncertainty surrounding the French presidential election. The far-right leader Marine Le Pen is well placed to dispute the second runoff, but the second name in that round has changed with political scandals. Francois Fillon, the conservative candidate, was seen as the next president, but his polling numbers dropped on news he had misused public funds.
Sonja Laud, investment director at global multi asset group at Barings, told CNBC she agreed with Tepper and added that there are “decent” trades in European equities.
“I think that (approach) is good,” she said. “And I think it’s important to understand…it’s since Trump that markets are up, we should not forget it’s the economic developments that actually started in the first half of 2016 that have been gradually lifting equity markets,” she pointed out.
“If the political risk (in Europe) is overpriced then you might have a decent chance in European equities,” she added.
