The companies to back in the event of a eurozone political crisis

Niall Gallagher, investment director at GAM, analyses how investors in Europe can navigate political risk and where the best opportunities are likely to be.

Looking ahead into 2017, European equity investors must navigate a crowded political risk calendar as well as the continuing sector rotation caused by the end of the 30-year bull market in bonds. Comfortingly, the companies exposed to global sources of revenue, positive technological disruption and e-commerce growth remain attractive investments however the democratic cards play out. Great selectivity is required however, and investors should be mindful of valuations given that the European market is now trading slightly above the 30-year median price-earnings ratio (P/E) of the last ...