Philippe Brugere-Trelat, executive vice-president, Franklin Mutual Advisers and co-lead portfolio manager of the Mutual Discovery Fund led the pro-Europe charge.
"U.S. equities are somewhat more expensive so it is not totally illogical to have a bigger exposure right now to Europe," he
"Equities are cheap in Europe because they carry a high level of risk, but some are cheap for totally unjustifiable reasons."
admits that the troubles in Europe are "very serious" and are not exaggerated by the press.
pointed out that it is an entirely a political issue which can be resolved.
"There's enough money to do so, it is the largest economic bloc in the world.
All it needs is political will to put together a closer coordination of fiscal and budget policies and come up with a crisis resolution mechanism which is durable and credible," he
"There's no doubt," said Brugere-Trelat
, "banks are on the front line of the debt crisis [although] some are in better shape than others."
But not big enough for Brugere-Trelat
who doesn't expect the yuan to dethrone the greenback as the world's reserve currency.
The reason for that, he
says, is that there is, at the moment, no alternative.
"The U.S. is the biggest market in the world where you can invest trillions of dollars without a problem; nobody wants to invest in the euro, and there's nothing else [to consider]," he