Is it time to buy? GS vs. Morgan Stanley

Is it time to buy the European stock market dip?

Morgan Stanley this week issued a "full house" buy alert on European stocks. At the same time a senior executive at rival Goldman Sachs urged caution on Thursday. Sheila Patel, the CEO of International Goldman Sachs Asset Management, is optimistic on the performance of some equities—but advised investors to remain selective."I think actually it's a time not to buy everything.“

On the other hand, Morgan Stanley argued in a European equities report on Monday that its market timing indicators (MTIs) showed the first "full-house buy signal" since the credit crisis started hammering euro zone stocks. As of the market close on Friday August 21 we had our first 'full house buy signal' on our market timing indicators since January 2009," said analysts led by Morgan Stanley's Graham Secker.

Europe was always likely to garner interest as a safe haven, after the panic around emerging markets sparked by concerns about the China economy. There are some signs of growth in Europeand possibility of the European Central Bank (ECB) extending its quantitative easing programbeyond the putative deadline. Today on the news conference of ECB no policy changes are expected.

The U.S. Federal Reserve is another international bank in focus.

"We still think you'll see Fed action beyond the end of the year," Sheila Patel told CNBC.