AP2: ECB stimulus will outweigh any further Greek disturbances
AP2, the Swedish state pension fund managing $35 billion in assets, says any disturbances caused by Greece won’t be enough to undermine the support European stocks will get from extreme central bank stimulus.
Excessive anxiety about a Greek default has probably suppressed stock prices as some investors underestimate the benefits of European Central Bank quantitative easing, according to Hans Fahlin, chief investment officer at the fund.
That makes European stocks more attractive than equities on the other side of the Atlantic, he said.
The risk of Greece exiting the eurozone is dwarfed by the benefit European markets are about to get from ECB stimulus, according to Fahlin.
[Bloomberg]
