Ah, well then you must be the smartest man in the room. Along with everyone else, of course.
I wish I had a dollar for all the folks that told me they got that "right".
With Central Banks now openly buying stocks, how can the Bull end?
- Thread starter Tsing Tao
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Ah, well then you must be the smartest man in the room. Along with everyone else, of course.
I wish I had a dollar for all the folks that told me they got that "right".
There's only one difference between me and them.
You Google-fu Aileron / Trading?
And all my stuff is still up and public and dated and free. Not the pay stuff. Started that stuff just for montly income to teach. But the market commentary was all free. Had the Live journal for a few years. Then after that, the one that started in 2007, and ended that one in 2011 when I moved to Mexico to volunteer my time? Then all the public commentary for free?
Yeah, I'm that guy.
I did get it all right.
The BoJ has been buying stocks for a long time as part of the various (Q)QE programs. So that's nothing really new... The particular dept of the SNB which is buying stocks isn't really the CB, but rather the Swiss sovereign wealth fund. Of course, they're going to buy stocks. It's exactly the same for Norges Bank, which owns 1% of all global equity mkts.
I just realized who you are, have not watched for a while but good to see you are still around! Take it easy bro.
serious q to Martinghoul;
do you see a scenario where these central banks unload equities in a manner that is possibly faster than the markets can handle? ( a black swan world event is not part of the scenario as its inherently always possible; more like a "decision" to unload)
Thanks. Yeup, still around. Not as active any longer on the public route, but still around.
I would find such a scenario very hard to imagine... A CB's dept which buys assets is a sovereign wealth fund/reserve manager, which has no reason whatsoever to sell securities of any sort, whether it's gold, bonds or stocks. Unless, of course, they perceive that they're overweight a particular asset in the mix, for whatever random reason. A good example is Gordon Brown selling UK's gold reserves. I don't see that any of the CBs in question are overweight stocks, but, obv, that could be a totally arbitrary decision.
The more interesting and realistic possibility is the disruption that can occur in the mkt if/when the big ones stop participating in sec lending and other basic operations. Norges did this briefly during the height of the Eurozone crisis and it wasn't pretty.