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?

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.

Latest Posts

Market Talk – June 9, 2023

ASIA:   Inflation in China stayed at low levels in May, as the economy struggles to recover even after its strict Covid lockdown measures lifted late last year. Producer price [...]
Read more

Anti-Religious Left Targets Muslims

The anti-religious left originally set their targets on the “Christian extremists” who were ruining America. The far-left originally left Muslims out of the argument because they thought Trump’s refugee ban [...]
Read more