What next for euro-zone equities?

The crisis in the euro-zone has exacted a heavy toll on regional stock markets. The sharp falls in equity prices have driven valuations down to attractive levels in many Member States, both relative to countries outside the single currency area and from a historical perspective. The growing possibility of a Greek exit from EMU suggests caution remains the watchword for now. But once the dust settles, stock markets could fare much better – even in Greece.