The European Central Bank (ECB) is likely to announce a quantitative easing (QE) program involving European sovereign bond purchases at its upcoming policy meeting on January 22, 2015. Recall back in September of 2014, in our two-part Weekly Market Commentary “Don’t Fight the ECB?” we highlighted several reasons for favoring U.S. equities and largely avoiding European equities,despite the ECB’s prior stimulus efforts and potential for outright QE. With QE likely forthcoming, we revisit the opportunity in Europe, which we believe may be setting the stage for a head fake. WHAT WE ARE WATCHING As we evaluate the opportunity in European equities, here is what we are watching:. Economic growth, Inflation. Earnings, Valuations, Loan growth, Relative strength. Economic growth gap between the U.S. and Europe is widening. The U.S. economy has been growing faster than Europe in….