"Mystery" Buyer Revealed: Swiss National Bank's US Stock Holdings Rose 50% In First Half, To Record $62BN

Tyler Durden's picture

In a month, quarter and year, in which many have scratched their heads trying to answer just who is buying stocks, as both retail and smart money investors have been aggressively selling...

... yesterday we got the answer.

In the second quarter, the Swiss National Bank added $7.3 billion to its US equity portfolio, and according to its just filed 13-F, is now long a record $61.8 billion in US stocks, up from $54.5 billion a month ago. In fact, rising from $41.3 billion in total US stock holdings as of December 2015, this means that the Swiss central bank increased its total US holdings by a record 50% in the first half of 2016.

That's just a small fraction of the central bank's total assets, which amounted to CHF690 billion of which CHF635 was in the form of foreign currency investments, which include bonds and stocks.

Of this CHF635 billion, the activist central bank had invested 20% in global equities, with about 60% of that being allocated to US stocks.

 

Going back to the SNB's US equity focus, here is a breakdown of the top 15 holdings, most of which posted substantial increases in the second quarter.

 

And, of course, the top holding which as regular readers know, is Apple. In fact, with its latest holdings of 15.6 million in AAPL shares, the central bank is a bigger holder than Calpers, Janus, Invesco, Oppenheimer, Franklin Resources, Morgan Stanley and hundreds more.

Shortly, we will show the just as unprecedented buying of US stocks by another state actor, Japan's $1.3 trillion General Pension Investment Fund, which also acquired billions of stocks in the past few months, but even absent that we now have the answer to the recurring question of who has been buying stocks as others were selling: central banks.

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Consuelo's picture

 

 

"...but even absent that we now have the answer to the recurring question of who has been buying stocks as others were selling: central banks."

 

Under the 'direction' of...?

Consuelo's picture

 

 

Here are some rhetorical questions to aid in finding the answer that is standing in plain sight:

 

- What is at stake (for the U.S.)...?

- Who directs NATO?

- Who directs (and protects) Japan?

- Think these aspects aren't related?

- Think foreign policy isn't related?

 

 

jakesdad's picture

stupid ? but if a foreign central bank buys us assets (ex equities) are they doing that w/existing money (for lack of a better term) or are we (us) accepting printed foreign money in exchange for actual assets?  holy s__T!  is it even possible to tell fraud from reality anymore?  does reality even exist?

tenpanhandle's picture

Only if you live in the forest...or something like that.

Blankone's picture

It is a foreign bank to you and I but the owners of the central banks share a bond that does not care about nationalities. 

wisehiney's picture

Must.

Save.

hitlery.

Mr. Schmilkies's picture

I may be ignorant, but what law permits central banks to buy shares of public companies not even in their own country?  

rejected's picture

Extraordinary times require extraordinary methods,,, usually the excuse given to the morons to convince them the law (and common sense) has to be broken to fix the problem that was caused by breaking the law and common sense in the first place. It's very simple.

Hope this helps!

Mr. Schmilkies's picture

Thanks, sounds about right. 

waterwitch's picture

It's the same law that prevents the FED from being audited. 

Market Rage's picture

I'm also ignorant and wondering this myself.

Herodotus's picture

Why don't they just buy gold? Wouldn't that be easier?

VWAndy's picture

 This is your God?

Consuelo's picture

 

 

RIP Rowdy Roddy P...

rejected's picture

Print up fake money, convince the morons it's valuable, then buy real assets. The name of the game for banks and especially central banks.

Seems to work!

Osmium's picture

But they are not using all that fiat to buy real assets.  They are are buying a paper claim against companies that are fabricating their earnings.  SO MESSED UP.

Agent_Orange's picture

As someone who thought a full blown market collapse was inevitable (and iminent for the last couple years), I can't help but wonder if it will actually ever happen and I'm completely wrong for being out of the market. 

The SNB doesn't give two fucks about the valuation and future prospects of these companies...It's like playing poker against someone with an unlimited stack. This makes my head hurt.....How will they ever exit these positions? How does this end?! 

PGR88's picture

Indeed.  Why can't the West continue with ZIRP and central-bank asset buying for the next 20 years?

 

The Japanese have shown us the way.

Savyindallas's picture

maybe they don't intend to exit their positions - maybe the banks will all be blown up and the hard assets transferred to a single new International globalist bank owned and controlled by the bastards who really control things. 

Latitude25's picture

Just further confirmation that the snb is a member of the bankster ponzi.  Jim Rickards says this ponzi's end will be announced on September 30th at 4 pm.

Yen Cross's picture

   This ends well. NOT      This is what NIRP causes yield chasing hooligans[central banksters] to do.

  When this fucker craters, there's going to be some Swiss bankers swinging/hanging from the ski resort gondolas. Bitchez

Truth Eater's picture

Central banks can get lots of free fake money that they can "invest" in other things.  Lets see what they own....  bonds, foreign currencies, loans doomed to fail largely....  this sure makes many stocks look like real bargains.  Yes- monopoly money out, shares of companies- real companies- in. 

 

I am surprised the central banks don't own everything.

john99999's picture

Unf***ing beliveable, but I've learned to suspend any rational economic sense in these markets. It was blantently obvious, after Brexit, that someone was buying stocks who had no concern about losing money. Now, we have physical proof of how rigged and corrupt the markets have become.

rosiescenario's picture

So the US market is still seen as the cleanest dirty shirt.....no surprise there.

Vin's picture

So the "owners" of the central banks get to print play money and then buy all the companies in the world.

Pretty soon they'll own everything. Fking amazing.

The Navigator's picture

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered"

Thomas Jefferson

Aubiekong's picture

So what keeps a country like china from printing fake money and buying everything we have?

cwsuisse's picture

Apparently we witness a process of accumulation of assets by the central banks during which assets are transferred from individual holders to the banks. At the end of this process which started with bonds and has now moved on to shares the central banks will own everything (financed with "created" money) and the individuals will own nothing, except for debt. 

Lady Jessica's picture

Correct.  All production is effectively being nationalized, on a global scale.

Except the nation-state has been replaced by a group of central banks who are accountable to whom?

Savyindallas's picture

They are accountable to each other and no one else. They are Big Brother, Cyberdine the Cyclops and Godzilla all put together. 

cwsuisse's picture

Although we have to assume that central banks cooperate closely with each other they are formally not accountable to each other. Unfortunately central banks and their staff are beyond the law. The only way to get rid of this pest is to abolish central banks in their present format.

galant's picture

We are witnessing the rise of fascist neo-nationalism on a global scale that Hitler could not have imagined in his wettest dreams.

Savyindallas's picture

That is a "conspiracy" that I have been concerned about for years. What if the Central banks just print money and buy everything? What's to stop them from holding most of the hard assets? 

cwsuisse's picture

I don't think it is a conspiracy. But it might be the result of global central bank policy. Due to that policy "yield" has vanished. Fixed income yield vanished first. Share yield followed. Real estate is overvalued and yields have been very much compressed and are today insufficient to cover segment related risk. Last pockets of yield remain in the private equity business but that is not enough. Without yield the assets owned by individuals decrease over time because people need to divest to cover losses which inevitably occur over time. At the same time assets held by central banks increase since central banks do not need yield to enlarge their portfolio. This mechanism is very dangerous and has the potential to destabilize our entire system. 

Yen Cross's picture

  If central banks owned everything they would have to print insane amounts of money to do it, which in turn would cause massive hyperinflation through currency devaluation in the short term.

 Then massive deflation would follow after as people completely lose perchasing power, which in turn would cause global civil unrest, and eventually government overthrows. The markets would stop functioning because, there would be no real pricing mechanisms.

 Japan has been doing this crap for over 3 decades, and they're finally on the cusp collapse. The Japanese govt. thought they could force people to spend by lowering rates and devaluing their currency, all the while buying up the bond and equity markets.

 It's been a total failure.

flyingpigg's picture

At the end these f#cking CB's will not own everything as long as we don't sell our pm's to the central banks.  :)

Iconoclast421's picture

And this is just the Swiss central bank! You just wait till the ECB and BoE start buying similar amounts. DOW 30000 here we come.

marx's picture

I agree Emoji.

 

Dow 30,000 here we cum.

Seal's picture

in 1923 German index went to 531,300,000

marx's picture

I smell Bernake's fingerprints all over this new phase of Central Bank Money Laundering.

 

Japan, Swiss, who's next to be found out buying US equities.

 

if this is true then going long US equities could be a pretty safe move.

VWAndy's picture

 I always wondered how a black hole was started.

Tic tock's picture

One way to devalue the Franc

john milton's picture

join the party  !!!

https://www.google.com/finance?q=SWX%3ASNBN&ei=BZCjV_GZB9bEsAHj3JrgBQ

anyone short on this one...

Schweizerische Nationalbank

(SWX:SNBN)

 

Government needs you to pay taxes's picture

Nuttin like goin long the global corpocrisy!

One-Eyed-Thong's picture
One-Eyed-Thong (not verified) Aug 4, 2016 3:43 PM

if the market crashed before November...  

 

 

GOLD, BITCHEZ !!!!

heddahenrik's picture

Am I alone with a working brain?

The Swiss Central Bank is backing up its currency with real assets like stocks, bonds in healthy countries, real estate, gold and other assets that hopefully increase in value by time. So when you buy a Franc, you are expecting it to rise in value if the bank does an OK job.

Today BoE realized this too and is throwing the banks under buses and are heading for sound money too, just like BoJ has done and most of the European banks are on their way to do. No more inflation and high interest rates that benefit the banks.

In the media "stimulus" or "money printing" is used for a word for QE as "crushing the profits of greedy banksters" isn't something you can write in the media owned by the banks. But it should be damn obvious for anyone that the Swiss Central Bank is just doing its best to get the strongest currency possible.

Twee Surgeon's picture

If I remember rightly, the Swiss just exported a record amount of physical gold to the USA in the first part of this year ?

Does exported mean 'Sold to' or Put in Storage or sold to their holding companies ?

Switzerland is one of the nations holding that convenient little lottery ticket called 'Neutral', as in, "We are Neutral and will not be at the party" every time they have a little mega-war in Europe, Like a Get out of Jail free card, very nice to be Swedish, Portuguese or Spanish because they are not required to engage in the local obscenities and can stay home, what's up with that?

The French boys, the German boys and the British boys and many more, get 'invited by treaty' to every conflict around the globe and get walked into machine guns and Slaughtered on an almost predictable schedule, the poor guys mind-fucked by a lifetime of notions about what Honor and Patriotism and Duty are. The Americans show up after most of the slaughter is done and save the day (In the case of the WWI & II, no disrespect to American troops, they were as conned as the rest.)

The Swiss are never invaded, bothered or too concerned about any of that stuff. What's up with that?

Why are the Swiss making moves that look like an Insurance policy in case the shit hits the fan in old Europa? That is the question.

Dark Daze's picture
Dark Daze (not verified) Twee Surgeon Aug 4, 2016 7:28 PM

No, the swiss franc is as solid as a rock, even with their banking problems. If the Euro obliterated their main problem would be with trying to keep the value of the currency down, it would have such impetus to rise shrply. I am pretty sure this is just more of the same central bank collusion beging carried on as 'saving the world'.