Why is Warren Buffet now investing in Europe?
With advantage Draghi situation in the ECB council, and steps
towards a more meaningful monetary
policy, Europe looks good for value investing. Key interest rates are at their
lower end and cost inputs would be quite attractive, rendering European
companies more competitive..
With outright purchases of securities,
and the launch of an expanded asset purchase programme, there would be an
adequacy of liquidity in the euro zone for some time. The
combined purchases of public and private sector securities amounting to €60
billion per month is from March to end-September
2016.
According to Draghi, January 2015 "Bank
Lending Survey provides positive signals, showing a further improvement in
credit standards for all loan categories in the fourth quarter of 2014" and the euro area has also seen "a
measurable improvement in indicators of business and consumer confidence."
With demand for euro assets, dollar might get some respite.
Without
risk or responsibility.
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