Chris Gannatti, head of research in Europe at WisdomTree, has said the combination of a depreciating euro and Italian political risk has created opportunities in European exporting stocks.
Barring a black swan event, such as Italy leaving the European Union, Gannatti remained positive about the outlook for Europe over the next few years, pointing to strong global growth and relative attractive valuations.
Speaking to Investment Week, Gannatti was particularly bullish on large-cap exporting stocks that performed poorly last year following the 14% rally in the euro versus the US dollar.
Furthermore, he said multi-national exporters would also provide a natural underweight to the Italian market, which was primarily made up of domestic stocks.
The research head said it was likely in six months' time the political situation in Italy will have calmed down dramatically.
Political concerns in Italy have already fallen back in the past week after the Five Star Movement and the Lega party revived a coalition deal, with the two proposing a new finance minister last Thursday after the previous proposal was rejected by President Sergio Mattarella.
On the news, Italian 10-year bond yields fell 0.18% to 2.66% last Friday, below the above-3% highs seen that week, while the FTSE MIB was up 1.5% to 22,110 points.
Gannatti, who joined the firm's European team from the US in April, said: "Italy always has been a market that has been besieged by concerns over high levels of debt, slow growth and non-performing loans since the global financial crisis.
"There are these known problems that have historically been difficult to solve. The euro is shooting downwards as a result of the market manifesting its concern about Italy at the moment.
"In this depreciating environment, the exporting basket of stocks will perform well, which is happening this year."
Due to heightened political risk in Italy, Gannatti said there was a good chance the European Central Bank (ECB) would continue its bond-buying programme beyond September 2018.
In October last year, ECB president Mario Draghi announced plans to end its €2.3trn bond purchases in September this year "or longer if necessary".
Gannatti added Draghi would want to continue to provide liquidity to banks following this period of bond market uncertainty in Europe.
"With bond market uncertainty, the ECB will not just stand idly by and continue with their September plans," he said.
"The central bank will act in a way that encourages the functioning of a sound financial system for Europe."
Gannatti said WisdomTree were focusing on launching products that should perform well during a market downturn, such as the S&P 500 put options ETF that launched last month, as it protected investors on the downside.
"When we are designing strategies, we are attempting to outperform when the correction transpires," he added.
"Therefore, we have a focus on the quality factor as it historically performs better when the market is in a downturn."