Banks undervalued
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The bank aid plan signals that the European finance ministers are going to support banks and make the necessary recapitalization. As every European solution it might not concretize immediately but it gives the opportunity to investors to buy financials at a valuation that priced in much of the gloom.
The market is pricing in a wide number of haircuts not just about Greece but other countries like Italy and Spain. I do not expect haircuts in these countries.

European Confidence
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Markets are desperately looking for some strong signals from Europe that will restore investors confidence. As the German finance Minister confirms that they could reactivate the 2008 mechanism to support and recapitalize banks it is a sign that co-ordinate action can occur. This alone will restore much of the confidence in Europe as the banks are central in this crisis.

Commodities and Gold
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Commodities, like financials, have already pricing in a low growth quasi-recession environment. With oil at lowest level since September 2010 commodities have upside potential. Gold, while it will remain volatile, should still be part of a portfolio and further corrections represent a buying opportunity for long term investors.

Strategy: Buying opportunities in Financials & Commodities
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Financials both in Europe and in the U.S. have priced in much of the bad news and I see more upside than downside potential. This said further high volatility has to be expected.
- Pretty much all European markets are substantially oversold so a rebound should occur as soon as more political clarity is achieved.
- European decision making is slow but I do feel that Europe will act especially to recapitalize the banks as needed.