Is it time to buy the European stock market dip? Even the most high-profile investment banks are divided.
Morgan Stanley this week issued a "full house" buy alert on European stocks, but a senior executive at rival Goldman Sachs urged caution on Thursday.
Sheila Patel, the CEO of International Goldman Sachs Asset Management, is optimistic on the performance of some equities—but advised investors to remain selective.
"We're actually bullish on equities. I don't know that we'd send off the flares for a full-scale buy everything alert," Patel told CNBC.
"I think actually it's a time not to buy everything. It's a time to be quite selective and look for the companies whose valuations have been battered in the recent volatility, but who actually have promising prospects."
On the other hand, Morgan Stanley argued in a European equities report on Monday that its market timing indicators (MTIs) showed the first "full-house buy signal" since the credit crisis started hammering euro zone stocks.
"Our MTIs also support our base case view of strong double-digit upside over the next 12 months. As of the market close on Friday August 21 we had our first 'full house buy signal' on our market timing indicators since January 2009," said analysts led by Morgan Stanley's Graham Secker.
Europe was always likely to garner interest as a safe haven, after the panic around emerging markets sparked by concerns about the China economy.