Beware Chasing QE

Investors are rushing to the European side of the global stock market ship. In a world that seemingly values the next dollar being printed by a global central banker more than underlying fundamental growth prospects, capital markets in the eurozone have been scrambling higher in recent months following the announcement by the European Central Bank (ECB) that they too are implementing their own quantitative easing program. The case for overweighting Europe is certainly reasonable, particularly given the attractive stock valuations relative to those found in the U.S. With that said, investors should beware of pouring into European stocks simply because QE is now underway. ECB QE is not necessarily the same as Fed QE. And recent history has shown that a QE program is not necessarily a sure fire guarantee to send stock prices higher.

Please click on the link to read more of my article on Seeking Alpha.

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