European stock markets are at a tipping point, after outperforming their American cousins with bumper returns at the start of the year.
Now, analysts and fund managers are split on how to position for a couple of months that could be prove to be very volatile.
The pan-European Euro Stoxx 600 Index rallied 21 percent to mid-April from the start of the year, but has since reversed 4.5 percent, as a bond market selloff has spread to equity markets.
"I'm not really keen on the volatility," Lothar Mentel, an analyst from Tatton Investment Management, told CNBC Wednesday. "A lot of our clients haven't got that capacity for risk to really take on the equity market."
Mentel took some money off the table three weeks ago and told CNBC that he wasn't planning to reenter the equity space in the short-term because of the "disconcerting" feeling coming from the fixed income markets. However, he added that the longer-term growth case for equities was "still very much there."