https:\/\/nypost.com\/2017\/05\/23\/what-we-know-about-swiss-national-banks-investment-in-us-stocks\/<\/p>\n
http:\/\/www.mauldineconomics.com\/editorial\/the-swiss-national-bank-owns-80-billion-in-us-stocks-heres-the-catch<\/p>\n
https:\/\/qz.com\/1140322\/check-out-the-swiss-central-banks-insane-90-billion-investment-portfolio\/<\/p>\n
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The Bank of Japan (BOJ) has been purchasing assets including exchange-traded funds (ETFs) and thus, indirectly, company stocks\u2026.\u00a0From a policy perspective, efforts to weaken Japan\u2019s currency by lowering interest rates to negative levels has not worked and has attracted criticism, particularly from financial institutions. It seems that now the emphasis will be on weakening the yen as well as\u00a0propping up stock prices.\u00a0In the parlance of the gambling community, the BOJ has become the biggest \u201cwhale\u201d in the market, holding a large share of stocks listed on the Tokyo Stock Market.\u00a0Therefore, many investors have become increasingly focused not on company fundamentals but on the BOJ\u2019s daily purchases\u2026. It\u2019s estimated that\u00a0the BOJ now owns about 60% of Japan\u2019s domestic ETFs and it\u2019s expected the BOJ could continue purchasing more ETFs through 2017\u2026.\u00a0Market bulls are happy with the BOJ purchases, but opponents say the central bank is artificially inflating valuations and ironically discouraging companies from becoming more efficient.\u00a0Interestingly, Japan\u2019s Nikkei 225 Stock Average is actually down more than 8% year-to-date [diminishing returns, anyone?], although one might argue its fate could have been worse without central-bank buying\u2026.\u00a0Of course, the BOJ\u2019s program is not unique. The Bank of England has a corporate debt purchase program worth about US$13 billion, and the European Central Bank has a similar program.\u00a0(Franklin Templeton Investments<\/a>)<\/p>\n","protected":false},"excerpt":{"rendered":" https:\/\/nypost.com\/2017\/05\/23\/what-we-know-about-swiss-national-banks-investment-in-us-stocks\/ http:\/\/www.mauldineconomics.com\/editorial\/the-swiss-national-bank-owns-80-billion-in-us-stocks-heres-the-catch https:\/\/qz.com\/1140322\/check-out-the-swiss-central-banks-insane-90-billion-investment-portfolio\/ The Bank of Japan (BOJ) has been purchasing assets including exchange-traded funds (ETFs) and thus, indirectly, company stocks\u2026.\u00a0From a policy perspective, efforts to weaken Japan\u2019s currency by lowering interest rates to negative levels has not worked … Continue reading