"It's a bad quarter," said William Smith, chief executive officer of Smith Asset Management. "When we experienced the flash crash, it put a lot of people on the sidelines (and) hurt investor confidence."
Smith, who does not currently own Goldman or Morgan Stanley shares, said he expects to be able to buy Goldman shares "on any weakness" after it reports earnings.
Stock Market were treacherous in the second quarter, and difficult to trade in. The flash crash on May 6 set off a month of dramatic stock market movements that left some banks reeling from losses on derivatives.
The crash, the oil spill, and fears about European debt unraveling also contributed to a spike in options prices. Banks, which typically sell options and hedge the positions by buying Share market news, lost money on both their options books and their hedges.