Baring: Sell Europe, Buy the US and Japan

Baring: Sell Europe, Buy the US and Japan. On the question of Europe's equity market health Marino Valensise, CIO of Baring Asset Management says There is a lot of interest in the European Economy and European investments. We've seen in the last few quarters that there has been a dramatic rally in asset prices which has not been matched by earnings growth. Earnings have barely changed. Valensise says for the markets to continue their upwards trajectory European stocks will need to grow earnings by about 13% next year, which is extremely ambitious. On the flipside, Valensise says that both the US and Japan are much better placed to achieve on expectations. The two markets we prefer are the US and Japan, where the monetary authorities have been, and in one case will continue to be, very generous. Watch the video: