Reuters interviewed Manish Singh following recent poor corporate performance of the eurozone’s listed companies, and how this will impact on Crossbridge’s investment strategy going forward. Manish commented that he will take an investment decision next week because “if we get a bad set of data then you have to cut your positions because it could play into the crowd thinking of ‘sell in May and go away’.
Expected interest rate cuts by the ECB this week, however, could stimulate the eurozone’s economy from the second half of the year onwards, depending on the outcome of the German elections, Manish forecasts. For the time being, he is “still playing safe in Europe, but if you start to see they move away from austerity and start reflation, clearly Europe will do better because it has been underperforming for the whole first quarter and second quarter”.
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