However, investors will have to be comfortable with a post-Brexit age of uncertainty.
“Those betting on Europe on the basis of a macroeconomic pickup are clearly going to be less enthusiastic,” Evans warned. “Uncertainty is going to be higher, growth is likely going to be lower, and that is not a very good mix.”
To help alleviate some of the uncertainty, the European Union has pushed for the United Kingdom to make a speedy and clean break from the E.U.
“Valuations may still be attractive, but what has deteriorated is the earnings picture,” Michael Arone, State Street Global Advisor’s chief investment strategist, told the FT. “Until the UK begins renegotiations, nothing has actually changed, but many companies are saying that until there is clarity, they will be curtailing capital expenditure and hiring. If we are still here this time next summer without clarity on the direction of Europe that will be a real problem.”
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