wukan wrote:NSE 20 has finally broken sub 2K to close at 1958
In the meantime FED has gone crazy and thrown in the mother of all QEs
Should CBK rescue our stock market and directly or indirectly buy stocks?Well first world central banks are doing so.Swiss and Japanese Central Banks are directly buying stocks with Bank of Japan buying Japanese ETFs and the Swiss Central bank buying US stocks like Facebook and Apple among others.The Fed was funding the Wall Street banks to buy stocks ever since GFC from their QE programs.Now the Fed is being more direct now.Through their recently launched program Primary Dealer Credit Facility (PDCF) the Fed is taking the large cap US stocks as collateral for repo loans to wall street primary dealer banks and hedge funds.Considering these loans are being rolled over when they mature,the Fed is keeping these stocks on their balance sheet thus essentially buying these stocks.Much of the rally in Wall Street in recent days has been attributed to this Fed intervention in the stock market.There is talk that Fed should outright buy US stocks.Its a banana republic style intervention nonetheless equities are rising due to this
Maybe Opus Dei should launch a similar facility here and rescue our equities and take Safaricom stock to 100 and KCB stock to 200?
Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money