Summary: European equities have performed well over the past years, especially for Australian investors when the weaker Australian dollar is taken into account. But for those who haven’t yet taken the plunge, Europe doesn’t look terribly attractive at the moment. The short-term boost to equities from the ECB printing money needs to be balanced against the downside pressure the move puts on the euro.
Key take-out: It’s unlikely that currency moves against Europe will wipe out returns for Australian investors over the medium term. The euro is cheap historically, with a lot of bad news – such of talk of deflation – already priced in.