ECB QE, EUR/USD, US and EU Stocks, US and EU government bonds!

Dear Reader,

The European Central Bank announced full blown Quantitative Easing.

In a previous blogpost(State of Market Affairs!) I forecast the EUR/USD will go to 1.0 in 2 to 3 years. Actually, this could happen in 1 or 2 years. I expect EUR/USD to reach 1.10 in 2015 and in a bear case 1.05 even.

I still forecast that US and eurozone equities will post negative returns in 2015. Yields on eurozone 'periphery' government bonds(Italy, Spain, Portugal, Greece etc.) should start rising in the first or second quarter of 2015 at the latest. German government bonds' yields should start increasing in the second half of 2015.

The yields on US treasuries should also start to rise in the second half of 2015 when the Federal Reserve will raise the Federal Funds Rate.


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Conflicts of interest: I may possess some of the securities or currencies mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!