There are several reasons to be "a bit more positive" about the economic outlook than there were a few months ago, says Feras Al-Chalabi, manager of CF Odey Continental European fund. Central banks are cutting rates, mortgage costs are falling, and on 8.5 times trailing earnings, equities are trading at levels not seen since the early 1980s.
"What stops me from being unbridledly bullish, though, is that this is a consumer-led recession, which tends to be longer and deeper than a cyclical one." More importantly, it is the result of a banking crisis, "which tends to be followed by two years of negative output".
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CF Odey Continental European Fund - top ten holdings
| Name of holding | % of assets |
| CIBAHolding AG | 5.8 |
| Koninklijke Kpn NV | 4.1 |
| Snam Rete Gas | 4.0 |
| Munchener Ruckversicherun GS AG | 3.5 |
| Allianz SE | 3.0 |
| Koninklijke Ahold NV | 3.0 |
| Colruyt SA | 3.0 |
| Zurich Financial Services | 2.9 |
| Swedish Match AB | 2.5 |
| Novo-Nordisk AS | 2.5 |
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