Central banks purchased 6 tln debt

In the first half of 2020, major central banks purchased USD 6 trillion in public and private sector debt. In comparison, the same central banks spent USD 1.5 trillion on quantitative easing measures after the Global Credit Crisis in 2008. However, this was over a time span of 5-years. The massive intervention of central banks is diminishing the importance of fundamentals in determining the price of risk assets and bubbles can build. For investors, this means that the role of momentum investing and psychology is increasing.