Well, D'uh! Of course its gonna cause distortions
(Reminder .... On July 29 the Bank of Japan annopunced it would to expand stimulus by increasing its annual purchases of ETFs to 6 trillion yen (around USD60 billion), 3.3 tln yen)
- "The increased BOJ purchasing provides a very favorable demand environment for listed equities," said Michael Kretschmer, chief investment officer at Pelargos Capital in the Hague. "Nevertheless, in the long run we strongly doubt these type of monetary gimmicks aimed at price setting of risk assets can have a sustained positive impact on economic growth."
Reuters have more
