K2: Making sense of Euro QE

Annual inflation in Europe recently hit the lowest levels since 2009. This has European central bankers and politicians working overtime to avoid deflation. 

Annual inflation in Europe recently hit the lowest levels since 2009 (see chart below via Morgan Stanley). This has European central bankers and politicians working overtime to avoid deflation.

Currently on a visit from Edinburgh, Nick Griffin from K2 Asset Management spoke with Livewire and shared his views on how effective this recently announced stimulus package is likely to be. “Monetary policy can only do so much - we have seen that in the US. Even though we have had quantitative easing for a long time and there has been an improvement in economic growth, ultimately it is still sub par. In Japan we have had it for a year now and we are still bouncing around very low growth levels. In Europe it is now just getting underway... It has to be done alongside fiscal policy and also alongside microeconomic reform.”

In the full interview Griffin shares his views on political posturing in the region and where he sees investing opportunities. Click here to watch the interview.

Insight by Nick Griffin, Head of International Equities, K2 Asset Management. Intelligent Investor has partnered with Livewire Markets to deliver you more market insights from industry insiders.

This content is provided by Livewire Markets Pty Ltd and does not represent the views of Intelligent Investor Publishing Pty Ltd. Content sourced from Livewire Markets is provided solely on the basis that individuals viewing the content use it only for personal, non-commercial purposes.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Join the Conversation...

There are comments posted so far.

If you'd like to join this conversation, please login or sign up here

Related Articles