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Power Play: Time to get back in European equities

Trader on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters

Europe is up big this year, but the Stoxx has pulled back in recent weeks due in part to valuation and political concerns.

But Jeff Kleintop, chief global investment strategist at Charles Schwab, tells CNBC's "Power Lunch" on Friday, it might be time to take another look across the pond.

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"So far, the surprisingly decisive outcome for the mainstream in the United Kingdom election last week highlights a recent shift in political momentum back to mainstream parties after years of decline. This is lowering the risk of unpredictable policy shifts for investors in Europe," Kleintop said.

He sees the tide turning against anti-establishment parties and believes political risk may no longer be a reason to avoid Europe.

"The resurgence of mainstream parties may continue, given new electoral reform law in Italy and a similar proposal in Spain. These signs that the momentum toward alternative parties has not merely slowed but is beginning to reverse may be an underappreciated positive for investors in Europe," Kleintop said.

The Stoxx is flat during during trading, but is up 15 percent year-to-date.