The markets have been oversold amid intense pessimism and a relief rally will be on its way within the next month, David Murrin, chief investment officer at alternative investment firm Emergent Asset Management, told CNBC’s “ Worldwide Exchange ”.
“Going forward you don’t want to be short on markets; even though I think Europe will go through some cataclysmic changes, it’s all about timing markets wisely,” Murrin said.
He added that despite the negativity surrounding the European debt crisis and talk of a Greek exit from the euro zone, European stocks and Bunds have barely moved in the past week and much of the downside risk from the uncertain political situation has been priced in.
“This crisis is a multi-year crisis and it goes through phases of intensity and we’ve been through one phase where the markets have pushed themselves to a point and now we’ll have a relief phase,” Murrin said.
He added between now and the next likely downside risk, the Greek elections set to take place on June 17, markets will not just sit and wait.
Jim Bianco, President of Bianco Research, told CNBC that Europe would be a great buy but “just not yet”.
However, Murrin warned that he was very pessimistic on Europe and that it was not a "great buy" because of the long-term structural problems of the region.
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