(New York)

Goldman Sachs has a taken a lot of hits lately. After the Financial Crisis the bank decided to go against the direction of its rivals and keep its large trading and fixed income businesses robust. The logic was that the market cycle would return and Goldman would mint money as they would have the only major division intact. The short story is that it never happened, as FICC revenues have plummeted. Goldman still sticks to their mindset on trading, which has hurt the stock. The but the truth is that the business is much more diversified than ever before and profits are rising, hitting an almost 11% return on equity in 2017. “If they can do almost an 11% return on equity in a bad year, I’ll take that”, says a major fund manager.

FINSUM: The gloom over Goldman’s weakness in fixed income is helping create a good buying opportunity for what is a thriving bank.