Will Swiss National Bank scoop AMC and other stocks and repeat history?

The Swiss National Bank bought 1.2 million more of the AMC shares in its third quarter and ended September with 2 million shares. The stock price rocketed around 19 times in the first nine months of the year. As a result, the shares have gained nearly 5.1% so far in this quarter.  

Going against the norm, Switzerland’s central bank has continuously increased stakes in some of the U.S. stock market’s most volatile names. It has doubled its stake in the meme-stocks like movie-theater chain AMC Entertainment (AMC), the videogame retailer GameStop (GME), and data-analytics software firm Palantir Technologies (PLTR) and Snowflake (SNOW) in the third quarter. The bank also holds other shares from companies like Uber, Lyft, Accenture, Abbot Holdings, Amazon, Biogen, FedEx, Spotify, United Airlines, etc. 

The Swiss National Bank made significant investments in ride-hailing operators Uber and Lyft, buying 1,176,302 more shares of the former to raise its stake to 4.9 million shares and initiating a stake in the latter of 1,044,300 shares. The bank cut its stake in McDonald’s, selling 484,025 shares of the burger giant. 

The bank released the data in a form filled with the Securities and Exchange Commission (SEC), and the stock trades were also disclosed. The bank, however, did not comment on the individual position of assets. The SNB had total assets of $1.1 trillion as of 31 December. 

By whatever means, the Swiss National Bank (SNB) has prevented the CHF from rising against the Euro, but looking at its investments, chances are of a u-turn. 

Earlier, the bank had bought 637,100 additional AMC shares in the second quarter to increase its investment in the movie-theater chain to 832,741 shares. 

The surprise element in all of this is a central bank buying meme stocks with freshly printed money. The global monetary/financial systems are anticipated to be headed towards a significant collapse. In case if this investment backfires, there won’t be a good return possible. 

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