Current arrangements insufficient to ensure neat outcome to euro crisis

ON EUROPE

Russell Investments' John Velis says Europe's leaders can avoid messy conclusion to euro crisis.

In Europe, our "square-root-sign" recovery still seems like the most probable scenario. In some ways, such a modest trajectory represents a bit of a disappointment. As we have been saying, the usual recovery after a recession is often sharp and quick, akin to the letter ‘V'. Yet, the 2008 Great Recession, the severest global contraction since the Great Depression, has not been followed by such a steep recovery. The euro crisis continues to weigh on investors' minds, as they seek to determine which sovereign bond funds remain risk free. The results of the Irish bank stress test resu...