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LONDON (Reuters) – Amundi Asset Management has recommended investors restart building their exposure to emerging markets and developed market credit, assets which are often considered more risky, after suffering a brutal sell-off last year.

According to the French asset manager’s analysis, market participants priced in twice the slowdown risk that economic fundamentals justified.

“We think that risk assets have now reset to more attractive levels and some “entry points” for long-term investors are materializing in emerging market (EM) assets and developed market (DM) credit,” Amundi said in a research note by chief investment officer Pascal Blanque.

It’s still too early to return to European equities due to uncertainties around the European elections in May and the UK’s divorce from the European Union, but opportunities may appear later in the first half, it said.

“We believe more robust opportunities will materialize later in the year as the European elections in May (and Brexit) could continue to weigh on investor sentiment,” the note said.

Amundi is Europe’s largest fund manager with 1.45 trillion euros of assets under management.

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