Investors look to continental Europe
Continental Europe still offers a number of good investment opportunities, according to Gartmore.
Although the economic outlook is widely expected to weaken over the coming months, valuations on the whole remain supportive, while fundamentals are, by and large, still attractive.
Roger Guy, manager of the Gartmore European Selected Opportunities Fund and the Gartmore SICAV Continental European Fund, said: “Although there are signs that growth is slowing, the slowdown is largely expected to be gradual and much less dramatic than the economies of many other regions such as the US.”
As export demand eases in 2008, the focus is likely to shift to the consumer and household spending. Unemployment is still falling in Germany, providing support to domestic demand and given the historically tight labour market, German wage pressures may also offer additional support to consumer spending.
Guy added: “It is worth noting that savings as a percentage of disposable income is higher in France and Germany than in the US or UK. We are also seeing lower levels of consumer debt as a percentage of disposable income in countries such as Germany, France and Italy versus the UK and US.”