AA-rated Nigel Bolton, head of Black Rock's European equity style diversified team, expects a divided Europe in the coming year. While core Europe will recover at a steady rate, peripheral countries face deflationary pressure and prolongued stagnation.
For Bolton, who has outperformed the average European Equity manager by more then 10% over the last year, picking the right stocks is the key to success in the current economic environment.
For his BGF European Fund he thinks companies with high exposure to emerging market consumers are most attractive. He sees European luxury producers as likely beneficaries of a rapidly increasing purchasing power in these new markets.