Assets management firm BlackRock has said that those looking to make investments in foreign stock markets should stick with European funds over US equivalents.
It believes that due to its exposure to cyclical industries, which perform better than defensive ones in the recovery period of a recession, the stock market in Europe is the best bet for those with money to invest .
Engineers, such as German firm Daimler, discretionary good producers, like France's LMVH and capital goods manufacturers including Siemens can give good returns to investors during a recovery, BlackRock said.
Andrew Williamson-Jones, manager of the BlackRock Global Equity Fund, added: "In contrast the US stock market has a greater proportion of defensive industries such as pharmaceuticals . However, even within the more defensive areas of the market European companies tend to have greater cyclicality."
City Index recently warned that the Chinese market may not be as strong as it looks, despite showing some positive results this week.
Investments better in Europe, BlackRock claims
Investments better in Europe, BlackRock claims
Thu, 27 Aug 2009
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