Investors paying attention to the market last week witnessed something they may not see for the rest of their lives. The Swiss National Bank's surprise announcement that it would no longer try to maintain the Swiss franc's currency peg resulted in the CHF/EUR exchange rate falling nearly 30% in a single day. In actuality, the collapse occurred within seconds of the announcement. This type of currency move speaks volumes about the unintended consequences of the quantitative easing programs being pursued by central banks around the world. Evercore ISI notes there have been forty easing moves by central banks around the globe in just the last three months. Investor should remain vigilant as they pursue investment opportunities in 2015.
This week's Week Ahead magazine contains a number of links to articles discussing the implications of the Swiss National Bank's policy change. Additionally, a number of articles contain updated commentary about the state of the energy markets. Maybe $50/bbl is the new near term top in energy prices with further downside ahead. At the end of the day, these lower energy prices should translate to more of an economic benefit to consumers than the negative implications from reduced earnings from the energy sector. Below is the link to this week's magazine.