https://www.holdingschannel.com/13f/swiss-national-bank-top-holdings/ https://www.bloomberg.com/news/arti...ket-distortions-are-coming-under-new-scrutiny https://www.businessinsider.com.au/china-economy-monetary-policy-stocks-stimulus-2019-1 https://www.smh.com.au/business/mar...ade-a-1-2-trillion-surge-20190221-p50z6c.html The rally since January in China has added more than $US893 billion to the value of the country's equities, lifting Shenzhen's risky startups and state-backed giants alike. Which seems to be there Central Bank going super saiyan cause nobody in there right mind would invest in China at the moment considering deep recession they are in. Central Bank buying Equities would create little inflation, meaning they will not be gun shy about flooding there markets, but what would the logical consequences be ? China joined the party this year buying stock market equities... Swiss National Bank loves US Markets, collects hundreds of millions yearly on dividends and capital gains, with money created out of thin air! Are Central Banks behind the 2019 rally ? I knew Central Banks bought bonds, but never thought they dipped heavy into stocks. In theory, they can prep up the markets almost forever through spoofing and algo's front running there big orders, they can create unlimited money... Even more so since the economy and markets are detached, not really correlated it seems. If anyone has more insight on this, please contribute to thread, I am curious about this
It's a continuous handout in every economy, there is no such thing as economics 101, everything is being pumped up ...it's a continuous injection of money to all....it's everywhere and it's too late to stop now, the only way to keep it going is to keep it propped up, there is nothing but air underneath this entire global economy. The only way to keep stimulating the global economy is to keep printing money day in and day out.....this entire global economy is nothing but artificial!! This is from a few weeks back!! China just injected a record amount of money to stimulate its economy Evelyn Cheng | @chengevelyn Published 4:33 AM ET Wed, 16 Jan 2019Updated 4:53 AM ET Wed, 16 Jan 2019CNBC.com On Wednesday, the Chinese central bank injected a net 560 billion yuan ($83 billion) into the banking system, the highest ever recorded for a single day. "At present, it is the peak of the tax period, and the total liquidity of the banking system is declining rather quickly," the central bank said in a statement on its website. In the afternoon, the yield on the 10-year Chinese government bond fell below 3.1 percent to its lowest in more than two years, according to financial database Wind. https://www.cnbc.com/2019/01/16/chinas-central-bank-injects-record-amount-to-stimulate-economy.html
This news out just hours ago... Just goes to show you how weak the world economy really is....but no one wants to admit it...all gdp numbers are all inflated, without world wide stimulus gdp would be completely negative!! China may be on the cusp of introducing 'more aggressive' stimulus measures, economists say Instead, the People's Bank of China took action — it injected $83 billion into the country's banking in a single day last month and cut banks' reserve ratios at least five times since the beginning of 2018 — in a bid to combat the slowdown. The central bank also used medium-term lending facilities to boost liquidity in the market. Chinese authorities could be getting ready to implement more extensive stimulus measures in a bid to encourage growth in the country, three economists said this week. Mitul Kotecha, a senior emerging markets strategist at TD Securities, said China has been reluctant to implement "hard and strong" easing measures, despite its economy losing steam, because the government has been concerned about expanding already-high debt levels. But Gavin Parry, CEO of financial services company Parry Global Group, says he thinks the People's Bank of China is "about to turn an inflection point," and could introduce more stimulus to the economy. https://www.cnbc.com/2019/02/21/china-may-introduce-more-aggressive-stimulus-measures-economist.html
It will crash intensively in 2019, almost for sure first half 2019. No questions about that, consumer debt levels and corporate debt levels have reached all time for some time, with bad corporate debt too, there's only one way to go... But I had been wondering, who is really pushing and flooding World Markets with Trillions in 2019, only answer is Central Banks with unlimited buying power. What are the consequences tho, will they buy and hold forever, liquidate holdings slowly when they QE there local markets, or they unload with a vicious sell-off blamed on some Geopolitical event ? In few years time, Bank of Japan is gonna own 15 % of there markets and 90 % of ETF's
Hehe, they printed 3.23 trillion RMB in January alone! And that's not counting the almost 1 Trillion US added in a month alone to there Markets which was mostly prepped by there Central Bank. There leadership is beyond financially retarded. The house price to income ratio in China is above 50 in the first-tier cities and 30 to 40 in the third- and fourth-tier cities. Tier 4 is literally time travelling back to the late 80's with house prices to income at 30!!! US is about 4 on average, so you can imagine how indebted and how expensive life is there compared to there incomes, due to excessive and constant money printing, inflation is out of control They literally have to keep taking loans on a yearly basis just to get by, people in China mostly all have multiple loans, loans on top of loans.
Best time to buy is in a deep recession. You are telling everybody March 2009 wasn't a good buying opportunity?
Nothing popped yet. When it does, it's gonna be rock and roll with landmines in every corner of the world this time, this is much bigger then the 08 us housing bonds and derivatives crash. Bottom for China has lower to go when RMB devalues, then they will go into insane QE and insane inflation, causing a crisis or deleverage pretty bad
You only know after the fact that March 2009 was a buying opportunity, go back to 2008-2009 when markets were almost worthless.....it's like people buying the Dow at 26,000...they will only know after the fact it's down 37% from highs that at that point was the time to sell....but you don't think that at this second with the Dow just under 26,000 and the futures up nearly 100 points on tomorrow's open.
Everyone thinks inflation is tame...hear in the US they make you believe that but go out and look for yourself, prices for goods and services are crazy high....