BlackRock, the world's largest fund manager is feeling more optimistic about Europe again with the economy showing the green shoots of recovery in recent...

BlackRock, the world's largest fund manager is feeling more optimistic about Europe again with the economy showing the green shoots of recovery in recent months. They highlight three key points which support their proposition that Europe should no longer be excluded from portfolios. Firstly, they note that whilst growth is still weak, it is now recovering. The price to book value of European stocks is below 1.3x, which is 25% below their historical average and 50% below US stocks, making them relatively cheap. Lastly, there is now less risk that the euro will be dissolved after reforms in peripheral countries. Risk remain with a weak and fragmented financial system and anaemic growth, however BlackRock believes it is now time to reconsider the region again. (VIEW LINK)