Global Market Commentary

October 23, 2014

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The European Central Bank buys securities from banks.

Under Mario Draghi, the European Central Bank has embarked on its boldest stimulus yet — expanding its balance sheet by purchasing various kinds of asset-backed securities from Eurozone banks. We applaud Draghi’s determination, and we are hopeful that governments in Europe will do more to stimulate growth by cutting red tape and encouraging business. These actions alone are bullish for European stocks. However, until Germany and the rest of Europe begin to focus on growth-friendly policies, we think Europe will remain in danger of a long, Japanese-style slump.

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