Three top European picks for your portfolio

Professional investor John Baker makes three stock picks to profit from European growth.

Each week, a professional investor tells us where he'd put his money. This week: John Baker, JP Morgan Europe Dynamic ex-UK.

Economic momentum across continental Europe has been strong in recent quarters. Investors have seen improving labour markets, solid real wage growth and stronger public spending trickling through. What's more, attractively valued European equities have been bolstered by policy support from the European Central Bank (ECB). On a price-to-book and dividend-yield basis, European equities are below their own historical average and look cheap compared with expensive bonds.

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John Baker is fund manager of the JPM Europe Dynamic ex-UK fund.