ECB Readies Stimulus for Languishing Europe while U.S. Prospers

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Europe just can’t catch a break. Two of the top three economies in Europe are troubled including Italy and France. In Italy, GDP is in recession after two consecutive quarters of contracting growth along with having to grapple with deflation. Yes, deflation is synonymous with depression. France has just pushed off its target to achieve the EU mandated deficit of 3 percent to 2017 from its original target of 2013. Well, with its zero GDP growth for Q2, it may be better to say c’est la vie to achieving fiscal targets. Meanwhile, the ECB implements the first targeted long-term refinancing TLTRO) operation this Thursday and U.S. economic growth and inflation are accelerating. In particular today’s PPI inflation number hit a healthy 1.8 percent YoY. Investors would be well-advised to accept normal volatility and take this time broaden their portfolio to build wealth and mitigate risks. Please see the Voya Global Perspectives latest market outlook.

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