Ollie Beckett, manager of the Citywire award-winning European Smaller Companies Trust (ESCT ), is far from discouraged by the prospect of recession after a tough year in which the war in Ukraine has exacerbated the economic challenges in Europe. 

‘The world’s changed. There is inflation, interest rates are going up, so using ridiculously low discount rates just doesn’t make sense,’ he says.

‘Valuation matters, but there are enough stocks out there. It’s a vast universe and they offer good value.

‘There are a lot of opportunities, weirdly in areas like industrials,’ he adds, as the Continent invests in renewable energy and local supply chains.