“We’ve got used to political risk in Europe,” says Romig. “If you look at the valuations of German stocks versus US equities, part of this risk is already incorporated in stock valuations.”
Romig believes markets have “a low level of expectations” as far as European politics is concerned. Therefore, he has a “really contrarian” overweight in European equities.
“We have by far our highest weighting to European equities. There could be some positive surpises if everything goes well. Europe could be a forcing element in the world again which it is not right now. My hope is that we’ll see a reformer in France.”
