March 2015 Commentary

The launch of Europe's quantitative easing program on March 9th will likely be the most important financial event of 2015, but not the only surprise that markets will have to absorb. Draghi’s QE plan is 3 times larger than the Fed’s purchases (relative to the size of government borrowing) and will be equivalent in size to 250% of the total net bond issuance of all Eurozone governments during its currently envisioned 18-month life span. Its impact on financial markets was swift, as sovereign yields went negative, the EUR/USD traded to a 12-year low, and European stocks marched higher as quickly as Japanese equities did post Kuroda's version of 'shock and awe'. Also, March 2015 was another solid month for Forge First, as each fund bucked declining North American indices.