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He also makes longer-term investments, often buying equity stakes directly from companies.
The government is buying equity in banks and guaranteeing their debt, and the Fed has dramatically expanded its lending to all manner of borrowers.
Rather than buying equity at a discounted price, "what is the future potential of the company?" should be the question asked.
So far, they have limited themselves to hiring consultants, inquiring about exploration and production projects or the prospect of buying equity stakes.
Meanwhile much of the Reserve Fund is used for buying equity in Russian state banks, which again makes those assets much less liquid than cash.But how much is really accessible to the Kremlin is anyone's guess.
"People are more optimistic about economic growth in the U.S. and elsewhere" this year, "which makes them more comfortable about buying equity," said David Chapman, who helps manage $650 million in global shares at Towry Law Asia in Hong Kong.
Similar(33)
Most retail investors should be buying equities for the long term (their pension).
If pension liabilities are bond-like, then buying equities is a mismatch.
Not credible that ECB GC have not discussed heli money or buying equities under QE.
Buying equities with borrowed money is a risky strategy, and no one should do it without understanding those risks.
Burned by the stockmarket bubble of the late 1990s, German investors are mostly not buying equities these days.
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