Equity

Goldman’s traders lost up to €100 million in a single session, according to Bank’s regulatory filing to the U.S. market authority

European Equities have already been cheap for a while, so why should we buy now?

With the rise in the probability of extreme risks taking place, the purchase of puts on bank shares, considering the implicit volatility on the Eurostoxx 50, seems to be an attractive hedge for long term investors according to Goldman Sachs.

The Fund aims to outperform the emerging markets equity cap-weighted benchmark by 4-6%per annum over a market cycle, while at the same time delivering significantlyless volatility (typically 30%).

According to Mandarine Gestion, current valuation levels in the banking sector constitute opportunities rarely seen over a medium-term horizon. However, over the short term, investors are preferring to focus on two factors while at the same time exaggerating in our view their consequences and therefore provoking excesses: sovereign debt and liquidity levels.