Richard Pease, manager of the Henderson European Growth and European Special Situations funds, believes stocks on the Continent can flourish despite the sovereign debt concerns.
Government bond yields across peripheral Europe dropped sharply yesterday as the ECB kept open its bank emergency liquidity measures until at least the end of the first quarter of 2011.
The FTSE 100 was down almost 2% this afternoon as fears over Europe's sovereign debt woes and tighter monetary policy in China continued to weigh on investors.
The single currency is unlikely to collapse despite the pressures of the European sovereign debt crisis, says John Greenwood, the Invesco chief economist.
Peripheral European nations Ireland and Portugal could be forced to head to Continent's bailout mechanism after their respective bond yields soared to the highest levels since the creation of the euro.