The Swiss National Bank Now Owns $87.5 Billion In US Stocks After Q2 Tech Buying Spree

In the second quarter of 2018, one in which the global economy was shaken by the rapid escalation of Trump's trade war, and in which central banks were one after another hinting at their own QE tapering and rate hiking intentions to follow in the Fed's footsteps, what was really taking place was another central bank buying spree meant to boost confidence that things are now back to normal, using "money" that was freshly printed out of thin air, and spent to prop up risk assets around the world by recklessly buying stocks with no regard for price or cost.

Nowhere was this more obvious than in the latest, just released 13F from the massive hedge fund known as the "Swiss National Bank." What it showed is that, just like in the prior quarter, and the quarter before that, and so on, the Swiss central bank went on another aggressive buying spree and following a modest selloff in the first quarter which was a mirror image of the SNB's buying spree during Q1 2017 - the Swiss central bank boosted its total holdings of US stocks to $87.5 billion, up 6.6% or $5.4 billion from the $82.0 billion at the end of the first quarter, and just shy of their all time high.

On a share basis, the SNB added some 33.659 million shares to its total holdings of US stocks, which at the end of Q2 stood at 1.320 billion.

Some notable observations: in the second quarter, after the SNB printed money out of thing air, it then added 4.85 million shares of AT&T, 673K shares of MSFT, 305K shares of AAPL, 272K shares of FB, 46K shares of AMZN, 423K shares of XOM. And according to some calculations, the SNB's portfolio now generates over $1 billion worth of dividends, or as @SheepleAnalytics notes, "they print money and we ship them our profits."

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 collecting billions in annual dividends from US corporations which are then remitted to various Swiss cantons and regional governments to fund local growth.

While we doubt this will be investigated with stocks at all time highs, we look forward to the Congressional hearings after the crash when the scapegoating and fingerpointing begins as it always does, 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. And more notably: it was most aggressive in adding to tech names, just in case there is still confusion why with the rest of the stock market flat YTD, it was tech names that drove the S&P500 higher.

And while we have yet to learn if Warren Buffett was actively frontrunning the SNB once again during the quarter by buying even more AAPL shares, something the Berkshire 10Q suggested is very likely, a look at the SNB's holdings of AAPL stock shows that after some modest selling in the first quarter, in Q2 its AAPL holdings again increased modestly from 16.570 million to 16.874 million shares, making the SNB a larger holder of Apple than Franklin Resources, Dimensional and the State of New York (with 16.7, 16.2, and 14.1 million shares respectively), and just behind Janus with 19.4 million shares, demonstrates one of the main reasons why the Nasdaq has continued to hit new all time highs on a daily basis for much of 2018.

The chart above also explains why unlike Morgan Stanley, which for the past month has been urging clients to exit their tech holdings, Goldman Sachs remains bullish on tech stocks and the Nasdaq: 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

Comments

lock-stick Adolfsteinbergovitch Thu, 08/09/2018 - 16:33 Permalink

It's all ONE SICK, PATHETIC SPAMMER!!!

•• Adolfsteinbergovitch ("I TORMENT THE WOMAN WHO SUCKS DICK!")

•• MoreSun (whacked, OH SO WHACKED!!)

•• Free This (ABOVE, in all his 7th grade glory - JACKASS  as new icon!)

•• roea.rita ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Cryptopithicus Homme (bitcoin spammer - imaginary "friend")

•• lisa.roy39  ("I SUCK DICK ON THE INTERNET FOR LAND ROVERS!")

•• Leakanthrophy (PORN for Jesus!)

•• 07564111 ("I PRETEND I DON'T KNOW ANY OF THEM!")

•• Africoman

•• Sanctificado

•• beemasters

•• PrivetHedge

•• Cheolli

•• bobcatz

dozens and dozens and dozens of banned log-on's -- more than seven years!

 

....and all the while, the pathetic little SPAMMER sits in his leaky, moldy, smelly single wide in Western New York, surrounded by garbage and dirty clothes, trying to find his dick amidst rolls of fat, talking to his ACTION FIGURES and wondering where his life went.

In reply to by Adolfsteinbergovitch

Endgame Napoleon TheSilentMajority Thu, 08/09/2018 - 19:23 Permalink

How about a refundable child-tax-credit expansion that includes the single dads, not just the part-time-working moms, with their free groceries, subsidized rent, free electricity, monthly cash assistance and daycare assistance to accommodate them in working part time so that they stay under the income limits for welfare.

We already have the expanded daycare assistance from the recent trillion-dollar Republican Omnibus Bill. 

That is not enough.

Let’s stimulate the economy more by doubling the refundable child-tax-credit cash infusion up to $6,431, which is given to part-time-working single moms who do not pay income tax on top of their free monthly bills, by giving the non-custodial parent, too, up to $6,431 in cash to spend as he pleases.

Let’s call it the dollars-for-dads tax credit. It will complement the mom-pampering tax credit that finances master bedroom sets from Ashley Furniture and arms full of $900 tattoos for baby. 

That is really not enough for citizens & noncitizens who are having sex and reproducing for the good of the motherland, while keeping up the economy with their spending.

We need to even out the Total Rewards Package for womb-productive sex, like Hillary would, and the Republicans have been working hard to do it, ever since they took the majority.

First off, they passed a bigly stock-buy-back tax cut for corporations and an estate tax cut for rich heirs. Then they added the Hillary touch: a non-refundable child tax credit for the many dual-earner parents, keeping two breadwinner jobs with benefits made possible by a $260-billion tax exclusion for their employers under one roof. It is a lot like the thousands-per-dual-earner-household income tax break that Obama gave the same group of parents in his 2008 stimulus. Obama likewise ramped up the max refundable child tax credit to $8,000.

Dual-earner, above-firing parents in family-friendly jobs take LOTS of vacations, coordinating the two-week vacations on top of PTO and pregnancy leave with their spouses who always have the flexibility to take off from work, too, for baby, of course.

Many take 7, 8 or 9 lengthy vacations a year, and although they can fund lots of luxuries on top of a posh zip-code house, a lake house, constant dining out, private schools and multiple vacations, this non-refundable tax break for dual-earner parents helps babies by financing vacation #9 for busy-working parents. 

But that was not close enough to what Hillary would have done, so Republicans added the expanded daycare assistance in the Omnibus Bill. Never mind that the Department of Human Services already had a entire, long-standing department for that purpose, making sure that the many single moms getting free rent, free groceries, monthly cash assistance and up to $6,431 in refundable child-tax-credit money do not even have to sacrifice to cover that expense.

Before Republicans took the majority, the USA was already devoting billions in taxpayer money—$113 billion per year just to the illegal aliens—to programs that pay single moms, legal immigrants and illegal aliens in single-breadwinner households with US-born instant-citizen kids for womb-productive sex, giving them 100%-free, noncontributory welfare when they keep traceable income under the income limits for welfare.

As non-welfare-eligible citizens struggle to cover rent that soaks up more than half of their earned-only income, their government was already piling on the rewards for part-time-working, womb-productive citizens and noncitizens.

But since most of the rewards for the sex and reproduction go to women who mostly vote for Dems, let’s add a tax credit for male citizens, legal immigrants and illegal aliens for each attempt at impregnation. Males are the target voters for Republicans; they turn out to vote for that half of the Uniparty.

This should work, assuming these are the males that actually show up on voting day to do the chore of voting, like the single moms who I just could not persuade to register to vote through motor voter when I worked at DHS, even though they were willing to fill out the long form to get free EBT food and cash assistance.

Sex and reproduction, after all, is the primary driver of the economy, and all of these pay-per-birth programs prove that this pay-per-sperm-infusion tax-credit plan will work.

Who can argue that spending money to pay citizens and noncitizens for womb-productive sex has been a failure?

With 101 million working-age US citizens out of the labor force, 78 million gig pieceworkers and 42 million womb-productive EBT-eligible “employed” parents who make so little by working part time that they stay under the income limits for that welfare program and others, the Uniparty's social-engineering through child tax credits and a welfare-rigged labor market has been an unqualified success. Why argue with success? We just need to the pay for womb-productive sex to be more gender neutral. Print more fiat to pay them for womb-productive sex in more ways, Madame Chairwoman.

And I do mean Madame.

In reply to by TheSilentMajority

Radical Marijuana Chupacabra-322 Thu, 08/09/2018 - 17:27 Permalink

The best way to rob a bank is to own one.

-- William K. Black

The historical credibility of the Swiss banking system enables that to have developed a leading position in using money made out of nothing to buy assets.

Robbing the robbers back to better balance may be the only remotely possible, albeit paradoxical, resolution of systems of symbolic robberies based on governments enforcing frauds by private banks.

In reply to by Chupacabra-322

All Risk No Reward Radical Marijuana Thu, 08/09/2018 - 20:32 Permalink

>>The historical credibility of the Swiss banking system enables that to have developed a leading position in using money made out of nothing to buy assets.<<

But that's a myth.  They don't make money out of nothing, they make it out of interest accruing debt obligations that systematically indebt, impoverish, and asset strip entire societies...  and even the entire globe.  I think you know this, Radical, but I'm just kee[ping your language accurate.

In reply to by Radical Marijuana

Radical Marijuana All Risk No Reward Thu, 08/09/2018 - 20:51 Permalink

Yes, I was over-simplifying  in such a brief reply.

The story presented in the article above has been developing for quite a while. As one previous example:

http://www.zerohedge.com/news/2018-01-09/snb-made-55-billion-2017-foreign-currency-holdings-soared

The Swiss National Bank Made $55 Billion In Profits Last Year, More Than Apple, JPM And Berkshire

I believe that relatively few people would understand the conclusion of that article, which correctly stated the overall situation as being:

Finally, if you’re printing the money that you’re playing with, where is the risk, and why even pretend that the world still has "efficient and rational" capital markets?

P.S.

I regard the following as one of the easiest to understand video presentations of how the central banking system operates, using the case of the Federal Reserve Board, while, of course, the Swiss National Bank is a particular example of that kind of institution in Switzerland. Usually, the creation of money out of nothing as debts, in order to end up owning assets, is done in more circumspect and indirect ways, than the cases where the central banks go straight from making their money out of nothing and directly using that money to buy assets. Anyway, here is a link to what I think is a simple explanation, but then, that is still a half hour long, as well as episode 4 in a longer overall presentation.

http://hiddensecretsofmoney.com/videos/episode-4

The Biggest Scam In The History Of Mankind

In reply to by All Risk No Reward

Endgame Napoleon YesWeKahn Thu, 08/09/2018 - 19:35 Permalink

Don’t listen to the old fuddy duddies, the people stuck in the past who are sometimes just old enough to have seen how circular life is. The economic, political and style trends circle back around, taking slightly different forms, with the young, hip, tech-savvy pioneering geniuses pitching each circular trend wave as something never before seen in earlier generations and too-big-to-fail!

In reply to by YesWeKahn

Radical Marijuana Fiat Burner Thu, 08/09/2018 - 17:34 Permalink

Civilization necessarily lives according to the principles and methods of organized crime, because human beings necessarily kill and eat other organisms to live. Civilization was simply the cultural elaboration of the nature of human beings: money is measurement backed by murder. Money cannot stop being measurement backed by murder. All private property is based on backing up claims with coercion. There is no private property outside of some system of public violence. Money is merely the most abstract manifestation of that.

Although it may well be correct to regard making money out of nothing as debts, to be used to buy assets, as enforced frauds which achieve symbolic robberies, i.e., as "crimes,"  that those are legalized lies, backed by legalized violence, should be reconsidered within the overall context that human beings necessarily live as reproducing gangs of robbers. Due to the biggest and best organized gangsters dominating Civilization, the banksters' bullshit dominates the ways that most people think and communicate about the legalized counterfeiting that is enabling the Swiss National Bank to make money out of nothing to use to buy assets.

In reply to by Fiat Burner

All Risk No Reward Radical Marijuana Thu, 08/09/2018 - 20:40 Permalink

The Money Power Monopolists are selling their stocks, probably in the trillions, to central banks and other controlled entities in order to maximize their bubble profits.

The central banks will take the losses (in trillions?) and pass the losses right along to the tax payer.

The Money Power Monopolists will then buy the stocks back from the central back during the Greatest Depression and the narrative will be how "stupid" the central bankers were.

The Money Power Monopolists already did this to the Bank of England, except it was with gold.

They are smarter than us and lack morality.

In reply to by Radical Marijuana

Utopia Planitia Thu, 08/09/2018 - 16:23 Permalink

"The Swiss National Bank Now Owns $87.5 Billion..."

So it was not Saudi Arabia that bought TSLA it was the Swiss National Bank!  /s

I hope they are ready for FVCKBK and all the others to tank.

JibjeResearch Thu, 08/09/2018 - 16:44 Permalink

The 3 most powerful warlords are: the USD, the Euro, and the Yuan.

Gold is a weakening warlord, but still powerful...

BTC is becoming a powerful warlord in the shadow.... will be more powerful than Gold.

Quadruple_Rainbow Thu, 08/09/2018 - 16:49 Permalink

The world markets are a rigged, manipulated, controlled ponzi. How much criminal incompetence negligence & complicity is the next question for all that have enabled it and do enable it to continue. It's like the global pedophilia trafficking ritual murder sacrifices and adrenochrome harvesting. Keep living the lie MF'ers and be prepared for the consequences. 

surf@jm Thu, 08/09/2018 - 16:53 Permalink

So what has the Swiss bank been doing at the stockholder meetings?.....

Communism by another name.....

Now you see how big tech bans infowars as a collective......

Orders from their owners....government....

Balance-Sheet Thu, 08/09/2018 - 17:28 Permalink

The Swiss have to buy the value of the *swissie* currency down or else they cannot export any thing so they create the CHF - flip it to USD and purchase US assets. This is a foreign assets swap so 100 Euros =114.5 CHF giving Switzerland a little edge against the EU.

They do not want to own EU stocks and this works plus they are investing in the USA for a little PE (Political Easing).

hooligan2009 Thu, 08/09/2018 - 18:21 Permalink

that would be 87 billion bucks out of total SNB non-Swiss securities of 753 billion bucks

https://data.snb.ch/en/topics/snb#!/cube/snbimfra

not bad ofr a country of just 8.5 million people

every central bank in the world must be wondering why they don't do exactly the same thing.

(print zero's buy income generating capacity wherever it is - how can you lose printing worthless fiat with a zero interest rate and no maturity date and receive dividends or coupons with a maturity date).

this is fraud by central bankers - no different to what ALL central banks do - it's just a question of which whale has the biggest balls to deprive countries of their investment returns.

what we need is an even bigger whale to CONFISCATE FOREIGN CENTRAL BANK HOLDINGS.

see how that works out.

Lie_Detector Thu, 08/09/2018 - 21:26 Permalink

They are creating "money" by the pressing of a few computer keystrokes. Then they claim they "loaned" the "money" and their citizens "owe" them (plus interest). When the end game happens and the citizens default they will lay claim to all the major companies on the planet. That is when a revolution would be necessary to stop slave "masters" from completely controlling the planet.