It's been a big week for Europe.
Last Thursday, the European Central Bank announced its long-anticipated quantitative easing program, which came in larger than expected.
And over the weekend, Greece elected left wing anti-austerity party Syriza to parliament, setting the table for potentially contentious talks between Greece and other members of the eurozone.
For investors, however, Europe's QE program is the main event.
Last week, Goldman Sachs' equity strategy team was in Europe last week speaking with clients about the impact this program is expected to have and in note over the weekend, the firm wrote that it is convinced these five things happen next:European and US sovereign bond yields will remain low. The euro will weaken by 20% against the dollar in the next few years to 0.90. Both European and US credit spreads will tighten further. European stocks will rally. US stocks will also rally, but less than European stocks.
See Also:A One Sentence Explanation Of Why European QE Will Come Up ShortLARRY SUMMERS: 'There Is Every Reason To Expect QE Will Be Less Impactful In Europe'So, Basically Everyone Expects The ECB To Announce QE On Thursday