Europe is “on sale,” according to Sarah Ketterer, portfolio manager and CEO of Causeway Capital Management, and European P/E multiples are currently lower than every other region in the world.
“European price-to-book values are as low as they’ve been since 2000 and dividend yields in Europe are higher than any other market….So it all looks fantastic for European equities,” Ketterer told CNBC Wednesday.
Ketterer told investors to take advantage of the highest-quality multinational companies that have been beaten down in the last few weeks amid worries over the debt crisis.
Ketterer said she has exposure to some European banks in her portfolio and added she would like to add to her current holdings once she sees more clarity in the sector.
“We like one of the Spanish banks, Italian banks [with the] highest quality—and none of them have significant exposure to Greece, although the contagion effect is worrisome,” she said.
Ketterer is bullish on:
FTSE Eurotop 100
FTSE Eurofirst 80
FTSE Eurofirst 300
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Bank of America
No immediate information was available for Ketterer or her firm.