Newton's Beevers flags high yield opportunities on Continent

A number of risks still remain on the European Continent but high yielding stocks, left behind by the recent bounce, will provide opportunities says Newton's Tom Beevers.

The manager of the £18m Newton Pan-European fund says these potential risks, which could choke off a recovery, have been overlooked as optimism has grown. “Unemployment is still rising, both in the US and Europe,” says Beevers. “Housing markets are falling, affecting in particular the UK and Spanish markets. “The solvency of the banks could return as an issue, despite the fact that huge amounts of capital has been raised, and rising expectations for earnings are creating the potential for disappointment later on in the year.” He adds the public sector is also becoming a concern,...