Background: What is the Intrinsic Value of a Financier?

The question actually came to me last weekend at a party when an Englishman I was talking to said “Good Riddance” on hearing that BlueCrest had moved headquarters from London to Geneva.  I actually partly agree — probably for the first & last time — with Michael Farmer

“If one is a citizen and your country’s having a tough time, you pay your taxes and that’s it – although rather reluctantly if they are not spending it wisely,” Mr Farmer told the Financial Times. Continue reading “Background: What is the Intrinsic Value of a Financier?”

Trade Notes: Is Philippe Jabre Right About European Banks?

Philippe Jabre

Philippe Jabre is turning bullish US equities and bearish (a change of sentiment from last year) European banks.  Either way, he’s being pretty relaxed about allocation as:

There’s enough time to allocate, the markets are not going to disappear, … We’re waiting for asset valuations to return to reflecting fundamentals, and to stop being so correlated.  A lot of European banks have now recovered to book or normalized valuations as uncertainties over the effects of the stress tests and now Basel, have softened.  But loan growth is falling, which will limit earnings growth, and if bank shares are going to trade at above book value, there has to be growth. Continue reading “Trade Notes: Is Philippe Jabre Right About European Banks?”