Greek drama last act ?
==============

Today's vote, that is expected to have even an higher majority than the one of yesterday, should hopefully close the short term problems not only for Greece but for European banks and the European markets.
Many question remain: are higher taxes, without some strong pro-growth initiatives, going to be a viable solution to Greece ?
Another risk is the deterioration of investors confidence in other European peripheral economies. For this reason a default event has to be avoided at all costs.

Europe on sale
==========

European stocks are valued very favorably in comparison with other part of the World. In addition to low P/E and P/B multiples these companies often pay very attractive dividends. Many European conglomerates trade at very low valuations that do not give them sufficient credit for their growth in emerging markets.

Another sector on sale is certainly banks. While uncertainty will reign till the upcoming stress tests Several European retail banks will benefit from the raising interest rates and are very attractively priced. These banks that have solved their recapitalization issues are a good investment opportunity.

European Consumer Discretionary
======================

The recent IPOs of Prada and Ferragamo reaffirmed that many of the European consumer discretionary will benefit from the increased demand from emerging markets and are a good investment. These companies have two of the main ingredients of a good investment: pricing power and long term competitive advantage.

-You can't print Oil
Despite the IEA release from the strategic reserve crude oil is now back at the same pre-intervention levels.
This shows the danger of intervention in the commodities markets that, sooner or later, will be neutralized by the supply and demand fundamentals. While commodities will remain volatile we are now at more realistic levels that present a good long term opportunity.
Gold will continue to perform well and I will take any future drop, to be expected in the summer, as a buying opportunity.

In short
Strategy: European Equities on Sale
===================================
- The resolution of the Greek problems should calm the markets;
- European stocks remain "on sale" due to low valuations.
- European consumer discretionary companies will benefit from their pricing power and long term competitiveness;
- Some European banks present an interesting opportunity.
- Intervention in the Oil market from the IEA was, as of now, not effective. Supply and demand balances (and particularly growth rate in China) remain the crucial factor.