The ECB and the BOJ: What They're Expecting to Do

The Fed underestimated the relationship between money supply and inflation. They were caught flat-footed, so they slammed on the brakes as best they could by interest rate increases. Europe is likely to increase rates too but has been a little less strong in their views than U.S. European stocks have never been cheaper based on 12 month PE ratios. The dollar is weakening and it will continue to do so.