Return of Risk Appetite Into European Equities: Nandra

Jupiter Asset Management's Kiran Nandra indicates a resurgence of risk appetite in European equities for medium-to-long-term investments. In light of geopolitical tensions between Iran and Israel, Nandra suggests focusing on companies with resilient supply chains capable of navigating potentially higher oil prices.

Analysis

Kiran Nandra, Head of Equities at Jupiter Asset Management, observes a resurgence of risk appetite into European equities, particularly for medium-to-long-term horizons, a view supported by a strongly positive sentiment signal (0.7). This renewed investor interest coincides with a complex geopolitical landscape, specifically ongoing tensions between Iran and Israel, which carry implications for the oil market. In this environment, Nandra highlights the strategic importance of identifying companies possessing resilient supply chains. Such companies are better positioned to navigate potential increases in oil prices and associated operational disruptions, suggesting a qualitative filter for stock selection within the European equity space.

Key Decisions for Investors

• Investors may consider re-evaluating allocations to European equities, given the reported return of risk appetite for the medium-to-long term.
• Emphasis should be placed on due diligence to identify companies with robust and resilient supply chains, particularly those that can mitigate the impact of potentially higher oil prices driven by geopolitical tensions.
• Monitor geopolitical developments closely, especially between Iran and Israel, as these could significantly influence energy markets and the viability of investments sensitive to oil price volatility.