Ajay Gambhir: Stockpickers can make money in uncertain Europe

ON EUROPE

RWC Partners' Ajay Gambhir believes investors can make good money from European equities despite the Continent's well publicised debt concerns.

Although government balance sheets are once again top of the list of investors’ worries, equities present an unusual opportunity with a combination of good value, strong balance sheets and improving margins. Despite the effect on short-term growth and confidence, there is good reason to believe stockpickers can make money in the equity markets. Both European corporate revenues and earnings have been beating expectations since Q4 2009, underpinned by a three year period of austerity and a prudent, unleveraged European consumer. Unlike European governments, commercial corporations cut earl...