BlackRock Strategist Sees Big Opportunity in European Banks
- Nigel Bolton says lenders to benefit from positive real yields
- Sees European stocks falling another 10-15% before bottoming
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European banks may be an unlikely bet when recession risks are stacking up, but BlackRock Inc. says it’s the right time to add exposure to the beleaguered sector.
“It’s contentious, but I see an extreme valuation opportunity in European banks,” Nigel Bolton, co-chief investment officer of BlackRock Fundamental Equities, said in a phone interview on Friday. “Rising interest rates are boosting net interest margins. Banks are still very cheap and backed up by strong earnings, with retail-focused banks to benefit in particular.”