Analyst Sees Openings in Europe as U.S. Growth Slows

Brett Gallagher, deputy chief investment officer at the Julius Baer Global Equity Fund, told CNBC’s “Squawk on the Street” that he sees strong growth in Europe as the U.S. economy slows.

“Our preference globally within the emerging world is central and Eastern Europe,” he said. “That’s the story of the formerly Eastern Bloc countries joining the European Union. We prefer Western Europe to the U.S. We are seeing some acceleration in growth in Western Europe -- coming off a lower base -- at the same time we’re seeing deceleration in the U.S.”

He said the recent market correction gives investors a chance to upgrade their holdings, but warned that there’s more volatility ahead.

“I think anytime the markets are in turmoil -- when everything sells off and there’s no sorting of the quality from the less than stellar -- one ought to take this as an opportunity to buy from those who are selling out of fear,” Gallagher said. “Upgrade your holdings, sell those names that are perhaps at the bottom of your list and buy the names you want to hold on to for the next 12 to 18 months.”

The market recently shed about 5% and wasn’t the sharp correction some believe was in the works.

Gallagher warned that earnings growth is slowing in the U.S. and said, “I don’t think it’s priced into the market at current levels.”