In an article published January 31, 2013, Bernard Arnault, the chief executive of LVMH, was quoted as saying, “The cloud on the horizon … is the evolution of currencies, [and a strong euro] would have an impact on French exporters and for our group …”
Europe has been one of the most exciting equity markets in 2015. With the S&P 500 Index up 2.30% through February 17, 2015, euro-area stocks in local currency are up 10.32%. It’s important to note that these same stocks in U.S. dollar terms are only up 3.92%, due to the significant depreciation of the euro that we’ve witnessed.
One of the most exciting developments thus far in 2015 has been Mario Draghi’s announcement of an open-ended quantitative easing program at the European Central Bank (ECB) to stimulate economic growth and stem deflationary risk to the eurozone.