At a Fidelity FundsNetwork investment forum last week, he said: “We hear lots of talk about members leaving the euro to lower interest rates and devalue currency but we do not see this happening.
“On paper, it makes sense but it would be disastrous for a single economy. It would see its borrowing costs rocket as there would be huge capital flight from those who see the economy is about to devalue.”
Despite the difficult economic climate at present, Burnett is confident that investment opportunities remain for strong businesses with recurring revenue.
He said: “We like conventional defensives and have done for the past 12 months. We like pharmaceuticals and consumer staples, companies with strong balance sheets in all liabilities and companies that are self-financing with decent dividends that do not need to involve themselves with the banking system.”