Investors are poised for this Thursday’s expected announcement of a massive Quantitative Easing (QE) programme by the European Central Bank. The market has long expected a European QE and has been pricing the move into markets; it has for example crunched European bond yields. It is difficult to anticipate how markets will react; QE could already be priced into asset prices. So when it’s announced nothing may happen or possibly prices may actually fall. But as value investors we want to look through short-term volatility, and step back and consider the longer-term impacts of such moves. Basically, we believe a European QE is a bailout in disguise.Is a secret bailout the ECB’s real agenda for quantitative easing?
Posted on: Tue, 20 Jan 2015 23:58:06 +0000
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