Why stocks can continue to rise? Citi: because the Central Bank was buying buy!

United States stock market this week to refresh record, striking gains. But this year investors from aggressively withdraw funds in global stock markets, especially in the stocks for most. So, what forces push up the stock market?

Citigroup Credit Analyst Matt King pointed out, the answer is the acquisition of assets of central banks huge. The MarketWatch reported, Bank of America Merrill Lynch on Friday (8th), displayed in a report, to the global stock fund withdrawals of $133 billion this year, including withdrawal of nearly $80 billion from stock funds. But US stocks Dow Jones industrial and standard and poor's (S&P) 500 index Tuesday and both stand on the highest level in history.

Can not help but bewildering. King Publishing figure a shows, in Europe, Japan, and Switzerland under the Central Bank's aggressive monetary easing, global Central Bank asset purchases has a 3-year high. From the second picture, history of the size of the Central Bank to inject liquidity and global stock markets are closely linked in the same direction.

Matt King think warmly this stock and bond market rally may be further strengthened. Matt King said the data suggests that, regardless of how economic fundamentals, as long as central banks continue to buy assets, the stock market rally is likely to continue. Although Citi policy urged the rally can last long, holds deep doubts, but still think that it may not be suitable for long-term bears layout time.