Investment managers: Europe a contrarian's playground

With the euro set to survive in spite of the economic turbulence emanating out of Greece, Europe will become a "contrarian investment", according to a new opinion poll of investment company managers.

Opinions were collated by the Association of Investment Companies (AIC) to gauge the mood of private wealth management companies amidst instability within the eurozone.

Though many had faith in the euro surviving, it was a still a major worry to investors, even more so than the crisis in Greece.

There was some consensus on the view that Europe would end up as a more dichotomous region with "core economies supporting peripheral ones".

Charles Montanaro, manager of Montanaro European Smaller Companies Trust, said he saw Europe as a contrarian investment:

He added: "Contrarians should buy when others are afraid to do so."

Although there were major problems within the eurozone, European economies were seen as being some of the healthiest in the developed world.

As an investment region, Europe has the highest exposure to emerging market growth in the world.

Despite receiving a massive bailout from the International Monetary Fund and the European Union last year, Greece still has a budget deficit that is 14 per cent of its GDP.

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