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La Crème de la Crème

- Don’t chase – "European equities have moved in a tight trading range in the last year. Key strategy for investors has been not to chase market up or down."
- Country effect – "Right to ignore country allocation in the 2000s. Sector strategy more important then. European macro divergence driving country alpha higher."
- North vs South – "We have favoured North over South Europe in 2010. Tactical call at start-July neutralized this view. Return to structural bias now."
- Country model – "Our country allocation model (CAM) buys Austria, Finland, Netherlands & Sweden and sells Greece, Portugal, Belgium & Ireland."
- French connection – "France has been one of the worst European performers YTD, in-line with mega-cap underperformance. CAC 40 near 12m lows."
- French drivers – "Poor earnings trends now improving. Market de-rated towards mid-1990s lows (p/b relative), macro headwinds. Happy to buy into weakness."
- French fancies – "Analysts’ preferred stocks: Accor, EADS, GDF Suez, JCDecaux, LVMH, Michelin, St Gobain, Sanofi-Aventis, Soc Generale, Vivendi."
- Bigger Europe – "Report also features views on key European markets in CEEMEA region, eg Russia, Turkey, Poland."

Citigroup_European_Country_Strategist_20100826

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