Cazenove's Rice: I have not been this positive since 2005

Chris Rice, manager of the £823m Cazenove European fund, is adding risk to his portfolios due to bombed out valuations and the European Central Bank's implementation of "one of the biggest bailouts in history".

Rice believes the bearish position he has adopted for over half a decade is no longer valid given current valuation levels. "The value of European equities stands at around 7-8 times trend earnings, which is an enormous discount compared to most global markets. Ratios for the UK and the US are in the double digits," said Rice, speaking at Cofunds' Economic Forum this morning. "By far and away the most important determinant for returns is the price you pay when you buy. The price you pay for European equities has not been lower in the past 30 years, and for the first time in 6-7 years ...