Recessionary fears in Europe exist but the US and the Emerging Markets (EM) look much better placed as economic data over the last few weeks have surprised to the upside. Central Banks continue to be in a monetary easing mode with the rate cycle in EM turning, inflationary fears receding and rate cuts to support growth looking more likely. The EM bullish case remains strong as do the cases for high yield credit (to take advantage of the recent sell of), Russian Equities (for valuation reasons) and large cap European and US equities that have lagged the benchmark. We recommend no credit or equity exposure to European peripheral economies. The message is some dislocations take a long time before the final solution is reached, and as an investor, it pays to be nimble and tactical with a shortened horizon. Overall, the risk is more to the upside than to the downside.