Forget Tulips & Bitcoin – Here’s The Real Bubble
by Tyler Durden
ZeroHedge.com
Sep 12, 2017
While the broader market for Swiss stocks has risen modestly this year, one ‘entity’ has outperformed its peers by such a staggering margin, it has left bamboozled market experts struggling for an explanation.</strong>
And that company is…the Swiss National Bank.
The price of a share in Swiss National Bank in August rose above 3,000 francs ($3,143) for the first time, more than double the level of a year ago, and up 50% since mid-July, as the Financial Times noted in a story about its performance.
Shares of the SNB trade like any other company listed on the Swiss stock exchange, though because of their price liquidity is somewhat thinner. The Swiss cantons together own 45% of the SNB while 15% is owned by cantonal banks and the remaining 40% by private individuals or companies. The Swiss Federal Government owns no shares.
Given the SNB’s holdings – it has demonstrated a voracious appetite for Apple stock and currently holds more than $80 billion in US stocks – the shareholder-backed hedge fund is also having one hell of a year. Perhaps it’s understandable that shareholders see these gains as a driver of value.
The Rest…HERE
