Central Markets by Robert Lloyd, CFA

The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the  information cannot be guaranteed. All opinions and outlooks are subject to change.

  • Robert Lloyd, CFA

The Swiss National Bank announces they will start selling stocks

Few are talking about the Swiss National Bank and why it is connected to today's stock market selloff.

Switzerland's central bank unexpectedly raised interest rates today and announced they would be active in the foreign exchange market. Swiss central bank surprises markets with first rate hike since 2007 (cnbc.com)

Translation: "All the stocks we bought for F/X purposes are going down and we want to lock in profits."

The Swiss and Japanese banks have bought lots of stocks to implement their monetary and currency policies. The Swiss, in particular, own a whopping $177 billion of US stocks as of March 31st AND they bought $25e billion more in 1Q2022! This makes them one of the largest pools of active money in the world. If they start selling, they will be getting in line with other large funds that are now liquidating.

Central banks were price insensitive buyers and now they are sellers.

Be careful out there.

Robert Lloyd, CFA®

Chief Investment Officer

Lloyds Intrepid Wealth Management

Lloyds Intrepid LLC is doing business as Lloyds Intrepid Wealth Management. Lloyds Intrepid LLC offers investment advisory services in the State of Texas where registered and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Lloyds Intrepid LLC and its advisers do not provide legal, tax or accounting advice. Lloyds Intrepid LLC formulates retirement plans, investment strategies, portfolio construction and investment due diligence for clients with signed investment advisory agreements with us. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. All opinions and outlooks are subject to change.

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