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Safe Bet? Central Banks Suddenly Start Buying Stocks

Saturday, April 27, 2013 - 6:39 AM
Fed up with low bond yields, the most conservative investors on the planet have begun to load up on stocks. Retirees? No, I’m talking about the world’s central bankers.

The U.S. Federal Reserve does not appear to have joined in the stock-buying trend. The Fed is not permitted to make direct stock purchases. But there is nothing to prevent it from funding a Special Purpose Vehicle that buys a broad basket of stocks through indexes or Exchange Traded Funds. In the past year, Wall Streeters have speculated the Fed would buy stocks as part of its Quantitative Easing programs to stimulate the economy.

Safe Bet? Central Banks Suddenly Start Buying Stocks |
ShorebreakShorebreak2,670 posts since
Apr 6, 2010
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