Not unlike QE announcements in the US and Japan, the reaction of investors in 3 asset classes has been along predictable lines. Here’s the graphic tale from the coalface…..
1. Euro FX rate; euro/USD has declined from 116 to 112 in 24 hours. Not long before 211 is seen me thinks. Here’s the chart via FinViz…
2. Equities enjoying 2-3% bounce too. Here’s the Euro Stoxx 50…..
3. And best of all….just the 7% bounce in German long dated bonds because they really need some help(!);
How long before German equities feel a QEuphoric tailwind and confirm the previous QE experience that the rich do indeed get richer….? As for the ordinary little citizens, not so much.
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