Japan may add $30 billion in U.S. stock purchases by end of 2015: Citi

NEW YORK (MarketWatch) — Bank of Japan’s plan to expand its bond-purchase program, on Friday, delivered a big dose of euphoria to stocks around the world, including in the U.S.

However, the Government Pension Investment Fund’s plans to increase stock purchases in addition to the expansion of the central bank’s bond-purchase program, likely will be a boon for U.S. stock markets over the longer term, said Citigroup chief equities strategist Tobias Levkovich, in a note to investors. Continue reading

Japan to keep printing money for years to come, so learn to enjoy it

There are no one-way bets in global finance, but Japan’s stock market comes close. The authorities are about to funnel large sums into Japanese stocks openly and deliberately under the next phase of Abenomics, both by regulatory fiat and by purchasing the Nikkei index directly with printed money.

Prime minister Shinzo Abe is unshackling the world’s biggest stash of savings, the $1.3 trillion Government Pension Investment Fund (GPIF). Officials say the ceiling on equity holdings will rise from 12pc to around 20pc as soon as August, opening the way for a $100bn buying blitz. Continue reading