Swiss Central Bank (SNB) goes on stock buying spree...Love Tech Funds as much chococlate

bee

Like most small investors I tend to swim in the low end of the pool. When a cannon ball hits the deep end off the high dive I brace myself by taking gulp of air between large wakes of water.

Recently the Swiss Central Bank jumped off the high board, tucked their knees and made a pretty big splash in the US Equity markets.

Makes me cautious of the continued tailwind in the tech sector.

Article:
Switzerland's central bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg

catch22

Not unlike the recent uptick in Bank of Japan continuing to add more purchases via custom etf's in equity sectors in their country and also more foreign bond purchases.
@bee Question: Are we really investing in what were traditional markets prior to the last melt? Don't fight the Fed has taken on a new meaning the past few years, eh?
Hey, you don't have to answer the question. More of a thought here; as I continue to question the "quest" for helping monies at least stay ahead of inflation and future taxation.
Take care,
Catch

LLJB

The question is what's going to stop it? Maybe not all central banks are buying US stocks like the Swiss are, but isn't it conceivable that the Europeans will have to do the same at some point? And what's going to strengthen Europe enough so the Swiss don't need to cap their currency and allow them or even more, incent them to unwind these positions? Until then I wouldn't think we need to worry about headwinds from the central banks. There may be other things that cause a problem for the market but until the Swiss, Japanese, Europeans and others make some progress on their goals I doubt they'll be selling.