The Central Bank issue

Posted: May 9, 2017 in Uncategorized

Now that the major issues in Europe are gone and the recovery in the US is steadying…..the real issue is coming to the fore.

A few person knows that this rally has been created by the Reserve banks.

Now trhe Central Banks (at least the FED and the ECB) are starting to discuss how to unwind this stimulus.

From the start of the year the Reserve Banks bought USD1 Trillion of sharers (for example  the Reserve Bank of Switzerland alone bought 4 million Apple shares  -USD580 million (Fond Swiss national Bank) and in 2016 the Bank of japan was the top buyer of Japanese shares with USD35 Billion (Font Tokyo Stock Exchange ).

To clarify

Capture SNB

And this is just one Reserve bank.

 

Capture Central Banks balance sheet

Try to unwind that without damaging the market!

 

Please note on the last picture how every crisis post 2008, correspond in a stop from the Reserve bank purchasing pattern (2012, 2014 and 2016)

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s