Why "Nothing Matters": Central Banks Have Bought A Record $1 Trillion In Assets In 2017
by Tyler Durden
Apr 21, 2017 8:38 AM
A quick, if familiar, observation to start the day courtesy of Bank of America which in the latest overnight note from Michael Hartnett notes that central banks (ECB & BoJ) have bought $1 trillion of financial assets just in the first four months of 2017, which amounts to $3.6 trillion annualized, "the largest CB buying on record."
As Hartnett notes, the "Liquidity Supernova is the best explanation why global stocks & bonds both annualizing double-digit gains YTD despite Trump, Le Pen, China, macro..."
(Looking at the graphs that came with the article it looks like the Central Bank balance sheets indicate that the CBs own an equivalent of 40% of global GDP. Unprecedented.)
