"Mystery" Central Bank Buyer Revealed: SNB Now Owns A Record $84 Billion In US Stocks

Tyler Durden's picture

In the second quarter of the year, one in which unlike in Q1 fund flows showed a persistent and perplexing outflow from US stocks and into European and Emerging Markets, a trading desk rumor emerged that even as institutional traders dumped stocks and retail investors piled into ETFs, a "mystery" central bank was quietly bidding up risk assets by aggressively buying stocks. And no, it was not the BOJ: the Japanese Central Bank's interventions in the stock market are familiar to all by now, and for the most part the BOJ keeps its interventions local, mostly propping up Japanese stocks, whether the Nikkei 225 or the Topix.

The answer was revealed this morning when the hedge fund known as the "Swiss National Bank" posted its latest 13-F holdings. What it showed is that, as rumored, the Swiss National Bank had gone on another aggressive buying spree in the second quarter, and following its record purchases in the first quarter, the central bank boosted its total equity holdings to an all time high $84.3 billion, up 5% or $4.1 billion from the $80.4 billion at the end of the first quarter.

As reported last week, the Swiss central bank has accumulated foreign exchange worth 714.3 billion francs (over $740 billion) due to its ongoing interventions to depress the Swiss franc, and has "invested" those funds created out of thin air in stocks and bonds. At the end of the second quarter, it held 20% in equities, of which the bulk was in US stocks.

While we are far beyond the point of debating central bank intervention in equity markets (we do want to remind readers that until several years ago, it was considered "fake news" to even mention it, and those who accused central bankers of manipulating stock markets were said to be paranoid tinfoil basement dwellers), we want to point out that unlike the BOJ, which at least keeps its capital markets distortion local, the SNB, which likewise creates money out of thin air (then sells it for dollars in an attempt to keep the Swiss franc depressed) is actively causing substantial price distortions in the US.

While we doubt this will be investigated with stocks are at all time highs, we look forward to the Congressional hearings after the crash when the scapegoating and fingerpointing begins, and everyone is "stunned" to learn that central banks were responsible for blowing the biggest asset bubble the world has ever seen by directly buying stocks.

What else did the SNB reveal in its 13F? Two main things.

First, its top 20 holdings are as shown in the following chart. The central bank was clearly not shy in adding to its top positions, especially the top position, which increased as a result of both appreciation and new purchases.

And while we have yet to learn if Warren Buffett was actively frontrunning the SNB once again during the quarter, similarly to his activity in Q1 when he more than doubled his AAPL stake making him a top 5 holder of the tech giant, a look at the SNB's holdings of AAPL stock which again increased from 18.9 to 19.2 million shares, making it a larger holder of AAPL stock than Schwab and Franklin Resources (with 18.3 and 17.8 million shares respectively), and just behind AllianceBernstein, shows why the Nasdaq has until recently been hitting new all time highs on a daily basis.

The chart above may also explain why Goldman, despite warning of rising worries about record low volatility remains bullish on the Nasdaq 100: after all, when a central bank can and does create money out of thin air, then splurges on the handful of tech companies that have the biggest impact on the broader market, pushing both the Nasdaq and all indices higher, what is the point of even talking about "risk"?

Source: SNB 13-F

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2ndamendment's picture

SNB is obviously acting as the defacto arm of the Federal Reserve. The game their playing is so transparent. 

Occident Mortal's picture

What is the stock price of the Swiss National Bank?

A: 2,282 CHF

The stock price of the SNB is up about 100% year on year... pretty good.

spastic_colon's picture

it becomes more clear who buffet et. al. are communicating with for their stock tips.........plausible deniability

Occident Mortal's picture

Theo Siegert is a German dude.

He owns 6.7% of the Swiss National Bank.

eclectic syncretist's picture

How did that old song go.....?

"Print your money for nothing, buy their stocks for free"

or something like that.

MalteseFalcon's picture

The SNB has been one of the more aggressive buyers of equities and has not defended the value of the Swiss franc.
For these reasons, the SNB is one of the great villains of the last 15 years.
The official history will not reflect this fact.

Mountainview's picture

It's all passive investments. Most with BlackRock where former SNB president Hildebrand plays a key role. Why US stocks? Switzerland's major trading partner is the EU and especially Germany. And what about Chinese stocks?

giovanni_f's picture

"The official history will not reflect this fact."

only unofficial histories reflect facts.

BullyBearish's picture

starting with the bis in basel, the western central banks are ALL IN to hold this up...until they don't

KimAsa's picture

. . .the central bank boosted its total equity holdings to an all time high $84.3 billion, up 5% or $4.1 billion from the $80.4 billion at the end of the first quarter.

I'm guessing the NASDAQ is up 5% from the first quarter.

espirit's picture

Meh.

The SNB is a financial arm of the Vatican.

ParkAveFlasher's picture

Division of Satanic Global Consulting LLC.

"All these kingdoms can be yours, if only..."

QQQBall's picture

How much of this is higher value of 2014 holdings?

GUS100CORRINA's picture

"Mystery" Central Bank Buyer Revealed: SNB Now Owns A Record $84 Billion In US Stocks

My response: This my fellow Americans is BULLSHIT!!!!! Central banks have no legal right to do this kind of thing with FIAT MONEY. 

In essence, this is LEGALIZED THEFT because they are doing it with money that is NOT THEIRS!!!

I just lost all respect for the SWISS. Is it any wonder why the markets are broken with no valid price discovery process and make no sense?

By the way, the SWISS are the same people who are looking for the "GOD PARTICLE". I can't wait until something really goes wrong with CERN and the ALPS melt down.

CorporateCongress's picture

Alps are already melting cause global warming and shit. Haven't you heard the latest propaganda uhh I mean research . 

0xAA4214C's picture

The FED could buy Nestlé...

You Americans are the Overlords of our global fiat system. It's not our fault, that you suck at this game!

Ghost of PartysOver's picture

So, let me see if I have this right....

The SNB can print all the money they want to prop up all the stocks they are invested.   Sounds like a level playing feild to me. 

rrrr's picture

"Great minds think alike," they say. But they also say, "When everyone is thinking the same thing, someone is not thinking."

Sam Clemons's picture

But if you can print money, why invest in stocks?

Bam_Man's picture

It's called "doing God's work".

Bay of Pigs's picture

Trump takes ownership of the ATH's yapping about supposedly low UE and yet says nothing about CB buying like this?

What bullshit.

DjangoCat's picture

I think the idea is that the SNB prints up CHF, then buys USD to keep the value of CHF in check, then, what to do with all this USD?  Oh yeah, buy US Stawks.  Better than T Bills?

eclectic syncretist's picture

It's called free markets dude, meaning you're free to give them your money faster if you like, or you can just wait for their inflation to steal it all slowly. The choice is yours.

Four chan's picture

buying up hard assets with money printed out of thin air. whose game is this? oi vey.

ejmoosa's picture

Buying up hard assets with bitcoins computed out of thin air-would that be the same thing?

Mr. Universe's picture

Coming soon to a Jew near you..."Bitcoens" the Jewish crypto currency.

BitCoen, an electronic crytopcurrency based off of the idea of BitCoin, is set to launch in September. Businessman Viacheslav Semenchuk, the brains behind the operation, told Russian media outlet RT that he and his partners are in talks with almost 100 trading platforms, discussing the prospects of the currency's ability to be used for purchasing.

The currency will be based on the value of the US dollar, with each BitCoen token available for one dollar. The plan is to initially issue 100 million BitCoens.The company hopes that they will be able to circulate up to $1.5 billion in the first two years.

While anyone can purchase tokens, the company will be managed by a 'Council of Six' made up solely of Jewish representatives. The representatives will likely be prominent leaders in both public and private sectors, though there is no word yet as to the planned demography of the leaders.

As the currency is aimed specifically at Jewish communities, there will be an automation option so that trading operations may take place on Shabbat, when the handling of money is prohibited by Jewish law.

Semenchuk told reporters that the initial 'bit book' for investments has been filled, meaning that the project is viable.

http://www.jpost.com/Diaspora/BitCoen-to-become-first-electronic-currenc...

 

DjangoCat's picture

Too wierd.  Sounds like a scam.

DjangoCat's picture

Selling "hard asset" stawks to buy Bitcoin, now theres a plan.

TheReplacement's picture

Considering the P/E ratio of the big boys that sounds like a potentially very smart move.

Suleyman's picture

Nope, you need to spend real assets of a value comparable to each coin, to "print" it. The difference is essential.

prefan4200's picture

Swiss have typically been successful at staying politically neutral. How do they sell their neutrality now if the bulk of their reserves in stock are placed in US equities. Doesn't appear very neutral to me.

Mr. Universe's picture

That ended when secret Swiss bank accounts were compromised and sold out to US banking laws.

Peacefulwarrior's picture

If Jamie Dimon is having a "I wouldn't touch 10yr Bonds with your dick" moment then why is it so strange Central Banks would lump money into Blue Chips?

small axe's picture

I'm surprised no one offers a central bank ETF. As long as you can stomach the deceit, corruption, and larcency of your holdings, central banks are a great buy -- can't go bankrupt and limitless funds.

What a scam. Here's another CB to round out your portfolio: 8301:JP  Bank of Japan.

Manipulism's picture

They are all in Rotschilds posession, so no lunch for you or anybody else.

yogibear's picture

Yes, proxy for William Dudley and the federal Reserve.

sgorem's picture

don't forget the other tenacles like New York, London, Brussels, Tokyo, and on, and on, and on....................................

Buck Johnson's picture

Yep the deal keep buying US bonds and treasuries.

 

 

Scuba Steve's picture

IMO, its fairly obvious that SNB is working on behalf of at least the Rothschild family assets.

1) What better way to control a company

2) what better way to use the technology of the company to get out global narrative

3) what better way to sync technology and Rothschild agent Soros' agenda

4) SNB buying sync with Rothschild agenda and U.S. central bank actions/narrative ... no wonder they can be so cocky.

 

The only way Soros was able to be on the right side of the trade so consistently over the years is to have inside information and/or be an agent of a higher seat that can manipulate both sides of the fence. (Rothschilds).

No doubt is why Jimmy Rogers distanced himself from Soros and I believe Stanley Drunkenmiller still works as a sub-agent thru his capital management firm.

jmo.

thinkmoretalkless's picture

So much is so transparent...maybe the emperor is wearing clothes, but than again after the fall we all saw the signs

IProtectYou's picture

"The game their playing is so transparent."

In this case I am almost be sure its not. 

The doj forced a couple of private Swiss banks out of business.  They will not be blackmailed or bullied again by the doj!

 


yellowsub's picture

Must be bullish on stocks...

lester1's picture

Imagine how many stocks the Fed covertly owns..

Let's audit the Fed and find out !!

ejmoosa's picture

I don't think Blue Apron made the list...

eclectic syncretist's picture

If the Fed owned so much stock then the "market" would become illiquid and volatility would drop to record lows. Oh wait..........

peopledontwanttruth's picture

Imagine how much all the CBs around the world own. Stocks on borrowed money, bonds, treasuries and all the other games in the derivatives.

What an illusion their terminology of "wealth" they've created.

This is beyond complete comprehension the greed and corruption they've created.

sgorem's picture

+1, and welcome to the fight club..................