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Your analysis would be welcome.

I'm thinking Goldman will lose out with less M&A in China (perhaps offset by advising and financing an increasing number of US infrastructure deals), and will be too heavily reliant on trading. GS's share price is up c. 40% since Trump's election on bullish sentiment around rates increases and deregulation. However, it is possible that Trump will miss these high expectations.

Citi has a lower P/E, fwd P/E, and P/B than Goldman, and is trading at a 19% discount to book value, whereas Goldman is at a 25% premium. Also, Citi is a more diversified business that has more to gain by a global economic recovery, especially in emerging markets, than Goldman. The energy crisis and fears of a global recession were weighing heavily on Citi's stock in 2016, but these risks are receding.

Would you rather be long GS or C? What would you guess RoE will be for each in 2017 and into the future?



Submitted January 13, 2017 at 08:56AM by Jeremy_Edwards_20XX http://ift.tt/2j7QytJ

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