The Latest “Meme” Stock To Jump Is Very Odd Indeed

The Latest “Meme” Stock To Jump Is Very Odd Indeed
Andrew Rummer

almost 3 years ago1 min

Mentioned in story

After GameStop, AMC Entertainment, and Nokia, the latest stock to rocket higher on little fundamental news is even weirder: the publicly-traded shares of Japan’s central bank. 

Bank of Japan (BOJ) shares – shown in the chart above – have surged 43% in the past two days, hitting their daily limit for gains on both Monday and Tuesday. 

That’s despite the BOJ not being a proper company of the type that sells products and generates profits: it’s literally Japan’s central bank, responsible for setting the country’s interest rates. Its shares pay no dividend and bestow no real benefit to buyers. 

It appears BOJ stock has become a speculative vehicle – something to buy in the hope new buyers will come along and push the price up even further – a weird and increasingly common pattern in today’s markets. 

Only about $4 million worth of BOJ shares have changed hands in the past two days, but that’s still more than 10 times the average amount traded in a given week. 

Japan isn’t alone in having a publicly traded central bank: you can also buy shares in the central banks of Greece, Belgium, and Switzerland. The only question is: why would you want to?

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