An ETF For European QE

Summary

European QE appears likely at the next meeting.
In order to overcome German opposition, the QE program may favor northern European bonds and stocks more than anticipated.
The bear market in the euro will continue in the wake of QE.

Back in December, ECB President Mario Draghi said consensus wasn’t needed for a QE program. The stumbling block in Europe has been several hard money nations led by Germany. These are the countries often lumped together as part of a northern euro block, such as Holland, Austria and Finland, who prefer a strong euro to a weak one. On the other side are the Greeks, Italians, Spanish and French who would do better with a weaker euro. Global investors are giving the south of Europe its wish by selling the euro, but a QE program would be a big help to nations struggling with unsustainable sovereign debts. If a QE program is launched, it will be good news for European equities, and due to the need to overcome German-led opposition, may benefit the north much more than expected…. To Continue Reading, Please Click Here.