BOJ Begins Historic ETF Unwind | A 112-Year Countdown

The 112-Year Unwind | Why Japan's Central Bank Will Be Selling Stocks Into the Next Century

The Bank of Japan begins selling its $676 billion ETF portfolio on Monday. At the planned pace, it will take 112 years to complete. Yes, you read that right. A century-plus timeline. This is what happens when central banks venture into uncharted territory. The BOJ started buying ETFs in 2010, accelerated dramatically under Abenomics, and now holds roughly 7% of Tokyo's entire stock market.

The strategy - sell so slowly that markets barely notice. The precedent: a decade-long bank stock divestiture that didn't disrupt markets. The subtext: some monetary experiments are far easier to start than to unwind. Meanwhile, the Nikkei just hit record highs, meaning those paper profits keep growing.

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