Central banks are no longer just central banks but a tool for economic and social policy. However, as Israel is grappling with, reserves are invested in low risk securities that at this time of zero interest rate policies as created by themselves, no longer want to invest these same reserves at those rates. So now, from some kind of nebulous risk/reward standpoint, since we have no idea what the real market value of money or savings really are, they have convinced themselves that they need to move out the risk spectrum into equities.
All I know, is that central banks generally are among the stupidest investors in the planet. Selling oodles of gold decades ago at market lows and recently buying it back at market highs. And now we are completely reliant upon these dopes to save the global economies? God save us all.
Bank Of Israel To Double Down On Equities, Will Invest In European Stocks | Zero Hedge