Talking Points:
• The ECB announced a major stimulus program on the same order as the Fed, BoJ and BoE QE efforts
• As the latest round of unconventional policy hits, we should consider how far stimulus can carry markets
• With the week economic impact from stimulus financial impact severe, the risk-reward balance is dangerous
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Another major central bank has adopted the open-ended QE model. Will this ECB's 1.1 trillion euro program buy the world another bout of economic expansion, financial stability and market climb? Or, are we already reaching the peak influence of monetary policy on the global economy and markets? There is no doubt that the ECB program is very large - a factor not lost on the Euro. However, exercising one of the last avenues of massive unorthodox policy leads market participants to reflect on the mortality of extraordinary efforts. We weigh the reasonable benefits and risks of stimulus in today's Strategy Video.
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