Central Banks Buying Equities

QUESTION: Central banks around the world are currently purchasing equities. If they continue to purchase equities, will we ever have a significant market downturn again? What happens when central banks acquire enough shares to control corporations?
PE

ANSWER: Yes. The central banks have been buying equities to try to diversify their balance sheets as they also see what is coming down the road. Still, they are not the major buyers to influence the market in that manner. Corporate buybacks have been a much stronger factor in the marketplace.

The reason why we will not have a major crash is simply because this time it is different — the crash is in the debt markets.

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