Is investing in recovering Europe worth the risk?

EUROPE

John Redwood, chairman of the investment committee at Charles Stanley Pan Asset, analyses the risks - from Russia to energy legislation - which have appeared in Europe in 2014

European shares have rallied well over the last year, after a period of sustained poor performance. Investors have been looking forward to the European Union edging out of a long recession, and hope the continent can now put the euro crisis behind it. The German economy is strong, with good brands among its engineering companies. There are also signs of recovery in the southern states after several years of sharp decline. Despite this, now may be the time to think about the future risks, and to be more discerning about which markets and companies can do well against a difficult overall ba...