The Bank of Japan is sick and tired of buying ETFs that have asshole companies, who don’t like to spendthrift their money on stuff, anymore. To remedy this problem, they’re created their own ETFs, weighted with good, wholesome, companies who spend lots of money on capex and wages.
The new custom-made ETFs track the following indexes: the MSCI Japan Human and Physical Investment Index, the JPX/S&P Capex & Human Capital Index, and the Nomura Enterprise Value Allocation Index.
This is truly unbelievable, a perversion of capitalism if I’ve ever seen it. The BOJ will never be able to exit their ETF investments. They already own titanic sized positions in their publicly traded stocks, via their ETF buying programs. In many cases, they own upwards of 60% of all shares in these baskets. It truly is an untenable situation being made progressively worse by the explicit and wanton manipulation of the Japanese stock market and economy.
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you keep pushing that bear agenda, it’s noble work you’re doing (extra rounders)
It’s not an agenda. It’s merely the facts. Nothing of what I’m saying is made up or opinion.
What you’re looking for should have happened already, and it didn’t. Therefore, it’s safe to say the good people who are pulling the strings are not going to allow it. And on a side note, do you really thing the Fed is going to allow the yield curve to invert? It’s in everyone’s best interest for markets to go higher, the Fed is well aware of that. All the jawboning is a side show….
” It’s in everyone’s best interest for markets to go higher”
I was with you up to here, but this thinking is delusional. It’s in everyone’s best interest for the markets to be priced at fair value, and it’s in the government’s and FED best interest to increase the earnings of the companies, **not just the value of their stock.**
Overpriced stocks do help retail stock owners in the long run, as price discovery will happen one way or another.
The fact is that the benefits of low-interest FED policies mostly help those higher up the income scale.
my point is that the fed is not going to induce another 2008-2009 scenario….It boggles my mind that people actually think that’s on the table…unless, of course, the fed is scheming to end life as we know it…..again.
They couldn’t repeat 2008-09 anytime soon if they tried, even if Central Bankers are “magic people.” However, I don’t think the 2000 scenario is on the table.
And Japan’s CBs obviously do beleive that they can do no wrong. Surely, you don’t beleive that CBs just can buy wahtever they want and there’ll be no negative consequences, do you? That may be further down the road, but it WILL exceed ’08-’09, because it will affect the goverenment bond market (JGBs).
Here’s what I know. Most of the civilized world is dependent upon financial markets not only to survive, but thrive over the long term. And yes, central bankers are playing games and who know what will happen when the music stops. Chances are it will be very ugly, or maybe not, nobody knows for sure, but it could also be 100 years from now….in the meantime…………………………………………………………….
Ok, so the timetable is unknown, but it still doesn’t excuse the magic people.
The BoJ continues to buy, everyone else continues to sell. Common sense says that at some point, the BoJ will have a negative balance sheet. What does that even mean for a Central Bank? No one knows, but more importantly the CBs don’t seem to care. I don’t know if they understand the risk and just push it forward because they don’t know how to deal with it (much like politicians do with money-realted issues), or if they truly think that they can predict the results and things will be fine.
They are like the gambler player who keeps losing and decides as long as he keeps doubling his bet, he’ll be fine. Or scarier, the gambler who keeps winning and doubling his bet…