ECB QE positive for all equities

The ECB’s decision to begin an open-ended and bigger-than-expected QE program is broadly positive for all equities, according to Lakos-Bujas Dubravko, US Equity Strategist at J.P. Morgan.

Dubravko and his team believe the QE program should support risky assets and a rotation in the US from Momentum into Value strategies over the next few months. This is based on a study of what happened to US and international equity markets following the five other major QE events: US QE 1/2/3, UK QE and Japan QE.

See chart of US and international equity markets’ response to the last five major QE events.