On a 12 to 18-month view, Europe is building additional re-gasification terminals to increase LNG imports to feed the gas between member states, as well as using alternative energy sources where possible.
Exposure to European stocks may feel uncomfortable. But at 12 times forward earnings the market is already pricing in a tough scenario around energy.
Our European exposure is focused on multi-nationals – leading franchises that generate revenue and profits globally and are not dependent on just the European economy.
Jacob Mitchell is the chief investment officer at Antipodes Partners