WisdomTree's Schwartz: BOJ Buying Stocks Through ETFs

The transcript discusses central banks' shift towards investing in equities due to limited bond availability, with a focus on the Bank of Japan's ETF purchases. It explores the implications of such investments, including potential market distortions and the need for exit strategies. The European Central Bank's (ECB) upcoming meeting is highlighted, with expectations of extending bond-buying programs due to low inflation. The discussion also compares the effectiveness of equities and bonds in stimulating inflation, emphasizing the role of currency dynamics. Finally, a global market analysis suggests that while U.S. stocks are expensive, they remain attractive compared to bonds, with foreign markets offering better value.

In what ways could the ECB's decision to buy U.S. Treasuries differ from buying equities?

What factors might lead the ECB to extend its bond purchasing program?