With Central Banks now openly buying stocks, how can the Bull end?

[Tsing Tao]

http://www.bloomberg.com/news/2013-...n-equities-as-low-rates-kill-bond-yields.html

Central banks, guardians of the world’s $11 trillion in foreign-exchange reserves, are buying stocks in record amounts as falling bond yields push even risk- averse investors toward equities.

(more after the jump)

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I guess there's no more worry about stocks falling when central banks are just printing and buying.

 

[kashirin]

New Paradigm!!!

 

[dealmaker]

At least they are not engaging in algorithmic trading.

 

[Tsing Tao]

Quote from dealmaker:

At least they are not engaging in algorithmic trading.

Only a matter of time.

 

[trickshot]

Quote from kashirin:

New Paradigm!!!

Yea its unprecedented. Central banks have killed market volatility by making everything yield nothing. Cornered investors arent going to sell stocks when there is nowhere else to go.

 

[kashirin]

Quote from trickshot:

Yea its unprecedented. Central banks have killed market volatility by making everything yield nothing. Cornered investors arent going to sell stocks when there is nowhere else to go.

wrong
we're nearing the tipping point

BoJ went all in
Austerity is wrong
Krugman is right
Bernanke is genius
money printing doesn't matter
complacency is everywhere

we will start to see big moves like in Japan bonds recently or gold last week frequently and soon everyday

central banks can't control everything, imbalances will continue to grow by the day and given their track record volatility will explode from one asset class to another

stock might be immune for sometime but who cares
gold+3% silver +4% today

 

[clacy]

To the original question, I don't know how long it can go, but it's going to end badly when it does.

It just doesn't pass the smell test that you can print and QE all you want with no ramifications.

 

[clacy]

Quote from kashirin:

wrong
we're nearing the tipping point

BoJ went all in
Austerity is wrong
Krugman is right
Bernanke is genius
money printing doesn't matter
complacency is everywhere

we will start to see big moves like in Japan bonds recently or gold last week frequently and soon everyday

central banks can't control everything, imbalances will continue to grow by the day and given their track record volatility will explode from one asset class to another

stock might be immune for sometime but who cares
gold+3% silver +4% today

I tend to agree with this. I can't claim to know all the answers when it comes to global financial markets, currencies and Central Bank activities, but my gut tells me that you can only delay pain for so long before the piper gets paid. One way or another, it's going to happen.

I tend to think later this year things get nasty.

 

[trickshot]

Quote from kashirin:

wrong
we're nearing the tipping point

BoJ went all in
Austerity is wrong
Krugman is right
Bernanke is genius
money printing doesn't matter
complacency is everywhere

we will start to see big moves like in Japan bonds recently or gold last week frequently and soon everyday

central banks can't control everything, imbalances will continue to grow by the day and given their track record volatility will explode from one asset class to another

stock might be immune for sometime but who cares
gold+3% silver +4% today

Japan bonds and gold what? Japanese bond yields are DOWN, the bond market crash that all the doomsday soothsayers have been predicting never did come. Look at Spanish and Italian bond yields, they are pretty much back to pre-crisis levels, this is astonishing given the severity of the debt crisis in Europe, I guess they have draghi's "whatever it takes" to thank for that. The rout in gold hasnt affected the stock market at all.

Stock market volatility will continue to shrink as long as central banks continue to drive down yields, and yes they cant control everything but they can control interest rates very well.

 

[MarketMasher]

Quote from kashirin:



central banks can't control everything

If I can buy all yo stuff with sumthin' I make outta nutthin...

Why not?