Herro Says European Banks Still Have Undiscovered Value

The video discusses investment opportunities in 2018, focusing on European banks and financials. It highlights the potential value in European banks due to improved regulatory environments and economic growth. The discussion also covers Swiss banks, particularly Credit Suisse and Julius Baer, noting their strategic shifts and investment potential. Finally, the video explores the possibility of consolidation in the European banking sector, considering the benefits and challenges of such moves.

What is one reason European banks are considered undervalued?

• They have a monopoly in the European market.

• They have a strong presence in the US market.

• They are still affected by past financial crises.

• They have high profit margins.

What change in the regulatory environment is mentioned as beneficial for European banks?

• Stricter regulations on credit growth.

• More lenient policies on mergers.

• Increased taxes on financial transactions.

• A shift from being a headwind to a tailwind.

What recent development is noted about Credit Suisse?

• It has been consistently profitable.

• It is facing a new scandal.

• It is beginning a long recovery under new management.

• It is merging with Julius Baer.

Why is Julius Baer considered an attractive stock?

• It has a new CEO with a tech background.

• It has recently expanded into Asia.

• It has the highest market share in Europe.

• It has a strong focus on private banking.

What is a potential downside of bank consolidation in Europe?

• It could lead to higher interest rates.

• It might not make sense without strategic advantages.

• It could increase regulatory scrutiny.

• It would result in fewer banking options for consumers.