Unloved Europe is the perfect place for investors shying away from pricey U.S. stocks, as the market has cheapened and the European Central Bank (ECB) is expanding its stimulus measures, according to Wells Capital Management chief investment strategist Jim Paulsen.
As the Federal Reserve begins to tighten policy, the ECB is making it more accommodative, Paulsen told CNBC, who has predicted euro zone equities will outperform their U.S. counterparts in the next 12 months.
"I love the fact that Draghi and the policy officials are going to get more aggressive with stimulus at a time that we have just cheapened those markets. I think growth in this region – which has fallen to about 1 percent is going to accelerate to 2 percent," he said.
"I really think the euro itself against the dollar is going to recover somewhat, so the strong theme that the U.S. is the place to be and the dollar is the place to be – I think is overblown a bit. We may find out that Europe is the opportunity," he said speaking from Paris, as the firm opens its first office in continental Europe.