Recent stock market volatility has demonstrated that markets have overpriced the risk of deflation, the chief global equities strategist at Goldman Sachs told CNBC, saying there were good investment opportunities to be had in Europe.
Reflecting on recent market volatility, Goldman's Peter Oppenheimer said there was confusion in the market over which way the global economy was heading with concerns over deflation a major factor for investors – concerns he thought were overdone.
"There's a lot of uncertainty about whether we're really in a deflationary world with secular stagnation or something a little bit more benign. Our own view is that it's more benign and that the market has overpriced deflation," Oppenheimer told CNBC on Wednesday.
"But the uncertainty over which of these two trajectories we're in is causing that volatility."
"But as we've seen in the most recent data from the U.S., you have got core inflation that's still positive and the markets have priced something a lot more negative," he said. Oppenheimer believed there were opportunities in European stocks, however.