Brexit Panic Putting Already Cheap European Stocks on Sale

The Brexit vote has created fear across global capital markets creating a slew of buying opportunities, particularly in assets that were already cheap.
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The Brexit vote has created fear across global capital markets creating a slew of buying opportunities, particularly in assets that were already cheap, said Chris Brightman, chief investment officer at Research Affiliates. 'If you look at Europe in particular, you now have the opportunity to buy very cheap equities with cheap currencies and the same is true in many emerging market countries,' said Brightman. Brightman is also positive on high yield bonds in the current low-yield environment. He said negative nominal yields in places like Japan are making so-called junk bonds more than worth considering. 'The high yield may only be offering you a fair spread, but a fair spread over a zero real yield is actually a fairly attractive opportunity and today's environment gets you back near to the entry prices at year end, which was a fabulous entry point for high yield,' said Brightman.