Monday Monetary Madness chart!
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.
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