- As last week made clear, central banks in Europe and Japan are getting more aggressive while the Fed moves in the opposite direction, says the chief investment strategist for BlackRock.
- Implications: 1) Global interest rates are likely to stay low even as the Fed pulls back; 2) The dollar (UUP, UDN) is likely to strengthen; 3) ECB and BOJ liquidity, while maybe providing a boost to U.S. stocks, is almost certainly going to add a big lift to European and Japanese equities, and U.S. investors should consider boosting holdings of both.
- Japan equity ETFs: DXJ, EWJ, NKY, DBJP, EZJ, EWV, JPNL, ITF, JPP, JPNS, HEWJ, FJP
- Broad European equity ETFs: VGK, FEZ, IEV, EPV, HEDJ, EZU, FEU, FEP, UPV, ADRU, FEEU, EURL, EURZ, FIEU, DBEU
at Nasdaq.com (Jan 22, 2015)