All Articles

Europe’s Money Printing and the U.S. Investor

What impact will Europes money printing program have on U.S. investors in the region?

On one hand, the stimulus ought to boost the European economy and stock markets. On the other hand, a weaker Euro could restrain the appreciation of investments in the region.1.30.15

Japans recent experience may serve as a roadmap. The Bank of Japan unleashed a massive money printing program in 2013 that sent the countrys stock market soaring 47%. The Yen depreciated 21%, however, leaving investors with a 26% return in U.S. dollar terms.

Although we do not expect this magnitude of gains in Europe, a similar narrative may unfold. We expect European stocks to rise in 2015. U.S. investors in the region should enjoy healthy returns, in our view, although not as high as local currency investors.

DISCLAIMER: Past performance does not predict future results. This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.

What can we help you find?