Mirabaud's Jung: Prepare for a 'hot summer' in European markets

While the latest macro data confirm the positive orientation of European economic growth, risks in the eurozone remain plentiful.

From a top-down asset allocation view, a neutral allocation in European equities is the most rational choice.  In the short term, investors are likely to refocus on fundamentals, which in the eurozone are clearly improving. Monthly indicators - in particular surveys - suggest the continuation of relatively elevated growth rates and predict solid activity in the second quarter. For both services and industrial sectors, surveys point unambiguously to continued expansion. Also, financial conditions remain - and will remain, in our view - favorable.  While many analysts expect the E...