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Blokland’s daily sketch

Blokland’s daily sketch

16-07-2018

Monday Monetary Madness chart!

  • Jeroen Blokland
    Jeroen
    Blokland
    Portfolio Manager

Recently, I came across this chart (the quality of which could be better) showing that the Bank of Japan now holds 80% of the assets under management of the Japanese index ETFs eligible for it to buy. Add to this the fact that the Bank of Japan also owns more than 40% of all outstanding government debt and you start to wonder how this will ever end. What if the global economy entered a recession and inflation, which is still nowhere near the Bank of Japan’s target, started to fall again? Would it proceed to buy every Japanese company and the rest of the Japanese government debt? Monday musings…

As a senior portfolio manager I use charts to illustrate financial issues every day. I tweet my favorites as @jsblokland and was named one of the ‘50 Twitter accounts for investors 2017’ by MarketWatch.
Previous editions of the daily sketch can be found on my personal financial markets blog. All graphics provided are collected from Bloomberg data and public websites. They do not always reflect my personal opinion and may also not necessarily reflect the opinion of Robeco. Please cite all references or quote the original source if replicating content.

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