Sanwa Holdings: the apparent inability of European finance officials and the slowing global economy represent major obstacles for equities in the months going forward.

As the troika continues its deliberations over whether or not to provide Greece with the next installation of its bailout and investors worry about the slowing in the global economic recovery, equities are likely to endure an extended period of volatility.

A market strategist at Sanwa Holdings believes, however, that the current price falls represent an opportunity for bolder investors to acquire stocks at considerably lower valuations.

“We think that the sell-off in equities is approaching oversold levels and while we usually advise clients to avoid “catching a falling knife”, valuations are looking particularly attractive,” he stated.

Sanwa Holdings says that, although the US dollar has been the main beneficiary of the liquidation, it does not expect the greenback to reverse its long-term downtrend.

The firm is known to be particularly bullish on junior mining stocks and oil exploration stocks and is thought to be preparing to issue a statement reiterating its faith in both sectors.