Last Thursday, Draghi — with his distinctive Italian accent — announced that the ECB will undertake its largest stimulus program ever. From March onwards, the ECB will purchase €60 billion worth of government bonds each month. The program will run for nineteen months and will amount to a total of €1,140 billion (around 8.8% of Eurozone GDP). After this announcement, the euro... »
Three Secrets about Draghi's 1,140 Billion Bazooka
January 26 2015
Three Events That Will Set the Tone for 2015
January 19 2015
January could very well turn into a highly memorable month. Later this month, the ECB and the Federal Reserve will indicate their intended policies for 2015 on January 22nd, and January 27th/28th respectively. The Greek elections are just around the corner and many companies will publish their financial statements while analysts expect the decline in corporate profits in a long time. ... »
What Central Banks Did in 2014 and Will Do in 2015
January 12 2015
2014 was the year in which the Federal Reserve announced to end its quantitative easing (QE) stimulus program. As a result, it was the year of the dollar. The dollar rose relative to all currencies. The euro also declined heavily and now trades at only $1.19 as opposed to the $1.39 it traded for... »
5 Traits of an Intelligent Investor (and 5 Things He Avoids)
January 6 2015
Contrary to the claims of many academics, there are some investors in this world who consistently earn high rates of return. What are the five traits of these “intelligent investors?” And what are the five things they avoid? To which category do you belong? Would an “intelligent investor” be buying gold right now?... »