Like most other European equity funds, those managed by Metzler Investment have lost ground this year
ON THE EUROPEAN OUTLOOK
Indicators suggest the euro-zone recovery will trail that of the U.S. That's bad for companies with a domestic focus; international ones should do better. A downward correction may come in the first quarter of 2002 when disappointing fourth-quarter  results appear.
ON SECTORS TO BUY
Insurance and reinsurance companies look promising: In response to September 11, they are raising premiums. Banks could do well in the second half of 2002 when the economy recovers and loan demand picks up. But the introduction of euro notes and coins will make price comparisons easier, so banking fees could come under pressure.