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"Mystery" Buyer Of Stocks In The First Quarter Has Been Identified
Three days ago, when looking at the unprecedented, record outflows from US equities (coupled with continued inflow into bond funds into what BofA's Hans Mikkelsen would likely dub the Great Antirotation) we asked a simple question: "who is buying... no really".
Then yesterday, the spoofing algos were briefly spooked when Yellen, for the second time in under one year, issued a warning about valuations, only this time instead of bashing the biotech and social media sector, the non-Series 7, 63 certified financial advisor brought attention to the entire market saying "equity market valuations generally are quite high."
She was referring to a level in the S&P around 2100 (aka 21x forward GAAP P/E multiple) which is where the S&P has been trading for the past several months, a level which was as high as 2120 in the first quarter, on February 20, 2015.
Yet, one entity that clearly disagrees with her assessment is none other than her peer institution in Switzerland, the Swiss Central Bank, which as we noted earlier, owned a record $1.1 billion in AAPL stock as of March 31.
The Swiss National Bank is also the answer to the question we posed, rhetorically, a few days ago:
"Who is buying"?
We now know, because while everyone else, hedge funds included, were dumping stocks in droves, here is what the Swiss National Bank was doing:
Together with companies engaging in record amounts of stock buybacks, the SNB was buying billions and billions worth of shares. So much so, in fact, that its US-listed equity portfolio rose by a record 40% to a record $37 billion.
And now we know, even if we don't know how many other central banks were active alongside the Swiss during its record stock-buying spree. And perhaps even more apropos: which central bank was selling to the SNB?
Finally, those wondering if the Fed gave the SNB the money with which to buy stocks on its behalf, the answer based on the most recent NY Fed FX swap data, is no. At least not in the most recent week.
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The central banking mafia families are their own country loyal to no one but themselves.
There aren't enough lampposts for these Ponzi b-turds !
SNB is the patsy,dupe and recepticle for the Cabal Crime Syndicate.
The Swiss people may be the patsy this week - like the Japanese people last week and the Begians before that - but not the SNB. The cabal of central banks are the patsy makers.
Right, because all banks have to do is create as much fiat money as they want out of thin air and then buy assets with the money. The bonus for them being, the assets, once purchased become collateral for more money creation.
How did the banks collect all of the gold and silver? They printed money and bought the precious metals with the money they printed out of thin air. It seems wrong.
legalized counterfeiters
The SNB schmucks are a bunch of scum bags. They've burned a lot of bridges this year. They've been screwing with F/X heavily as well.
I'm not just talking about the eur/chf debacle. The SNB is playing games with Australian$ the yen and various other currencies. Look at how eur/aud and eur/usd traded last night. All the risk currencies were sold on USD strength except for the euro. Someone kept loading the bid everytime the euro dropped 10-15 pips. Hedge funds don't have the kind of cash required to move a currency major pair vertical almost 8 hours on the M-15 chart.
It's so obvious that the SNB and some other nefarious large banks are f*cking with the markets. The eur/aud spikes up 200+ pips on the 15 minute chart, and then magically reverses on a dime and sells off in the other direction, even lower.
The price action is so f*cking one sided , it's laughable... Bitchez
Isn't this just part of the globabally co-ordinated plan? That is, when they engineer the crash, the government will own most mortgages and critical corporations and as the whole crisis develops, they will end up owning substantive production, distribution and exchange ie. communism.
The central banks are transferring all the toxic assets from the banks to the government. When it crashes all the government will own is the losses. It's the banks who will end up owning everything else.
Hell, the governments won't really own anything. The taxpayers will be on the hook for all those toxic "assets" which, being toxic, might as well exist only on a ledger somewhere. In short, the banks will own anything of value and the people of the world, thru their governments, will be obliged to pay the bankers eternal interest for all the assets the bankers bought with taxpayer funds.
Serfs up dude!
"Serfs Up!"
I'm stealing that :)
It was always going to crash. To suggest that there's been some sort of intentional plan to do this side-steps the responsibility of recognizing the REAL underlying fact that it's all attributable to "growth" (perpetual growth on a finite planet).
By scapegoating this to the current batch of clowns only keeps the path open for a new batch of clowns. Understanding that the clowns only show up with the "tent" ("growth") enables one to see that tents ought not be raised...
"they will end up owning substantive production, distribution and exchange"
LOL, like it's EVER been any different!
The Swiss had Euros coming out their ears. This is a play that U.S. equities yield more than the Euro.
The hills are alive with the sound of music.
the sound of fiddles while Rome 2.0 burns.
Hidden offshore accounts located in the Swiss Central Bank are buying it up. I think they plan on going forward with QE4ever. So I guess its safe to say that the Fed is going to destroy the dollar. I bet you that its been in the works for a while now.
I think the long term plan was always to destroy the dollar and transition to the Yuan - hence the banking mafia off-shoring all the industry in advance - the whole process effectively being the mass looting of America by the banking mafia.
However the current situation still feels to me (gut feeling only) like panic so I don't think they're ready to jump to East Asia yet and so they're desperately trying to support the dollar until they've got their new nest fully set.
The off-shoring was about "natural" evolving economic development models. Grunt-level manufacturing isn't what mature economies do so they're shifted to "developing" nations, whose people have not experienced being ground up in the machinery and are happy to slave away.
The System is in decline because there is no longer enough "growth" (due to debt levels, aging populations, scarcer natural resources). No longer are there "developing" nations, none sufficient to supply the expanded consumer populace (which, as noted, can't really afford to consume anyway due to its debt load).
Many will claim that the problem is that we've "mismanaged capital," when in fact we've mismanaged the future. The "future" is no longer there. No matter what anyone does it's just NOT there. "They" can try whatever they wish, but at some point there's only so much stuff that people, "consumers," can pack away, and as the demand falls off a cliff the economies-of-scale system will lose its ability to provide the price breaks, which will then only result in decreased demand... (economies of scale in reverse)
Again, we're at the circus. Quit complaining about the behaviors of the clowns!
“One vast and ecumenical holding company,
For whom all men will work to serve a common profit,
In which all men will hold a share of stock,
All necessities provided,
All anxieties tranquilized,
All boredom amused”
Network, 1976
The Volcker Fool
So wait, (1) print Swiss francs, (2) exchange them for USD [thereby driving down the value of the franc, (3) buy APPL and who knows whatever else.
I guess thats better than getting raped defending a peg.
As I've been saying since forever:
CENTRAL COMMAND.
"Like a Swiss clock"... perhaps the new Apple Watch was what pulled them in?
No worries. The Fed is selling them SPY Puts too
Vote up!
Vote down!
New jaxville said: "Hopefully those people [who bought PMs at or near the top] don't dump their underwater positions as a result of anti gold propaganda and manipulated valuations. They will feel a lot worse in a couple of years when the reality of the folly of credit based money overwhelms all the bankster schemes."
We didn't sell our stacks as a result of any propaganda or manipulated valuations. On the contrary, we held tight as PM prices went down, down, down, because of *pro*-gold propaganda telling us it would go back up any day now. If we'd sold two or three years ago we'd be a lot better off now. We finally sold because we had nothing else left to live on.
If I told you how much Ag and Au I had at one time, you wouldn't believe me.
Same here! Too old to get a decent job and a couple of calamaties and "BLAMO", I have had to sell all mine to eat. They want to drive us from PM's. At least that is how it feels for the retail PM investor.
But indeed I would......
Like many others, GOLDEN MYTHS.
wth. I give up. Sell it all, buy gold and bullets and hunker down.
Hardly a good Omen... they lost 30 Billion CHF on defending the Swiss Franc against the Euro maybe they can beat that loss buying the biggest bubble the world has ever seen?
is Hans related to Mads? the reason i ask is because Mads father, Henning, is a banker in Denmark.
nothing sinister.
This is all incredibly dangerous.
You just KNOW that there will come a day when these guys need to sell to stave off some currency crisis. They will be forced to DUMP equities at precisely the time that everyone else is. It's sheer insanity.
What's most ironic is that the fact that they are holding such risks mean that they are likely to feel pressure BECAUSE they are holding the equities. In other words, their currencies could see a run due to them holding the risk, forcing them to dump for a greater loss, deepening the crisis.
It's sheer insanity. Just insanity. This has all got to implode, and sooner rather than later once smart institutional shorts frontrun the currencies and equities and force the selling.
As long as they can sell to each other, to dark pools and funds, the ponzi will be maintained. The ultimate backsstop buyer will be the FED.
"SNB holding equities for 15% of Swiss GDP"
I'm surprised that noone is talking about the huge conflict of interest when having that kind of exposure and deciding on the "best" monetary policy for your country!
The country of gold has switched to stocks.
Gee never saw that one coming; a Central Bank buying stocks...nothing new here.
Colonel Mustard did it in the Conservatory with the revolver.
They would have never unilaterally done this. What other countries were involved? What type of assurances would the Swiss have gotten that their 'investment' wouldn't tank? Who gave those assurances? How would those giving the assurances have any control over the matter?
The central banks are doing it on their own imo - nothing to do with the Swiss, Germans, Americans etc.
Same banksters that are funding Jade Helm.
Every corporate CFo with a $billion dollar buyback , ahen I mean pump, ahem I mean buyback program is buying. TURN THOSE MACHINES BACK ON!
Hmm....
I am not sure I can credit $10.7 Billion as "buying in droves" given the size of the current market...or even of AAPL stock.
equities as an inflation hedge? since gold is too obvious and not available?
what is AAPL worth when the financial system implodes with a hyperinflationary KABOOM
people will line up for food, not the latest Ishit
in every inflationary period equities keep up with the rate of inflation regardless of market conditions. zimbabwe, venezuela and argentina are just recent examples.
http://www.reuters.com/article/2015/05/07/us-usa-fed-portfolio-idUSKBN0NS0BB20150507
Wary of bond 'cliff,' Fed plans cautious cuts to portfolio
(Reuters) - The Federal Reserve is sketching out plans to prevent an abrupt contraction in its massive balance sheet next year, when as much as $500 billion in bonds expire and risk disrupting markets and the U.S. economic recovery.
Though it ended a stimulative asset-purchase program last October, the Fed is still buying mortgage and Treasury bonds to replenish its $4.5-trillion portfolio as holdings mature. The central bank has said it will keep reinvesting until some time after it begins raising interest rates later this year.
Asked publicly and privately about the longer-term strategy, Fed policymakers say they are in no rush to shrink the portfolio, suggesting they will seek to avoid a "cliff" - a disruptive end to reinvestments that might come if bonds are simply allowed to run off through maturity or prepayment.
Economic analysis shows that shifting the end of reinvestments by several months in either direction would have "essentially no effect on the economic outlook," San Francisco Fed President John Williams told reporters last Friday.
"My view is this would happen organically," he added. But to avoid confusing investors with too many changes at once, he said, the Fed should give investors time to get used to rate increases before allowing the balance sheet to shrink. "You want enough separation in time just so that, once we get the (rate) normalization process going ... then this would be a decision that would be of second-order."
Six years of crisis-era purchases meant to boost economic growth quintupled the size of the Fed's balance sheet. The Fed predicts it will take until 2020 to shrink the portfolio back to normal.
The central bank can always sell bonds, but it said in September it will rely primarily on run-off to reduce holdings in a "gradual and predictable manner."
Assuming this is actually the way it would play out; what is the safest way to profit from this "outside" information?
As long as faith in the FED is maintained, their balance sheet - in whatever amount, - can be held to maturity, - whatever that means - to the FED and financial markets. The name of the game is, "The Financial System, as long as it is backed by the FED" cannot fail.
Whatever is bought by the FED and its other Central Bank proxies is therefore acceptable collateral.
On that basis, you can have a coordinated Central Bank "moonshot buying," for generations to come.
Tranparent and "fair" markets. Somehow the Jordan-put does not make me feel any more comfortable... Stox might go higher, but no thnx.
So, when the SNB dumps it's US equities, on or about the Shemitah (Sept 13, 2015), Jade Helm 15 SOF are fully trained and the long awaited DHS/FEMA holiday camp party begins?
I don't know, but this is a 7 year itch that I just can't seem to scratch. Like 7 years ago, in September of 2008, Lehman blew up and out of existance causing a freak out in Paulson's (SecTres) little mind. These crisis' run in 7 year terms. Hell, even C. Lagarde of the IMF gives funny little numerology speeches about the lucky number 7. I don't like this, Sam-I-Am. I'm not much for green eggs and ham either.
another possible play is propping up the equities market until the economy recovers. if they let it cruise sideways for another 3 years the economy may catch up by then. in any case, this is a new level of kicking the can down the road. banksters are effectively aiding in the stock buyback scam. they will not sell until the market turns around on "real" data.
it is after all just one big bank with all these different branches with different names over the doors. this week it was the Swiss' turn to be the PPT.
Passing the baton...
How could you mot BTFD?
The SNB could have bought the stocks from US or EU banks
Finally I understand what ZHers mean when they say their gold and silver investments are underwater. I need to stop thinking literally and start thinking figuratively.
So when a central bank buys a fuck ton of stocks, and then decides to stop buying those stocks , and the price inevitebly starts to plummet due to low volume/interest from others to buy, what does the central bank do?
-Hold
-Sell
-Buy More to prop up the price of the shares it already owns and keep its books looking good
They have to have the intelligence atleast to realize that, if you are buying more of something you already own because its value is going down and you are buying it in order to keep its value high on paper, that its bad.
Uh, no, they don't hold or sell or buy more, they SHORT the stocks they are holding. This means, as the stocks go down, their equity postion stays the same. Once the momentum has reversed and their interests have been preserved, they increase their shorts and then sell into these shorts.
You cannot fully manipulate a market unless you control both sides of the trade.
well, since its got all that money, why not? better than buying negative yielding bunds lol
if they end up owning the entire world wouldnt that be the biggest coup in history. If i was Swiss and the idiot traders continue pumping up my currency...I'd just printed unimited amounts and buy up the world...lol
http://www.cbc.ca/player/News/Business/ID/2666703865/
The Exchange with Amanda Lang | May 7, 2015 | 18:40
The case against Bank of Canada
Rocco Galati is one of the country's leading lawyers with a taste for quixotic cases
buy signal deluxe
Either I read this article before or I'm getting younger.