The Modern Monetary Policy and New Market Paradigm

The supply of money in 12 of the world’s biggest economies exploded higher in 2020. The Fed, ECB, BOJ and BOE own financial assets that now equal‧‧‧

The supply of money in 12 of the world’s biggest economies exploded higher in 2020. The Fed, ECB, BOJ and BOE own financial assets that now equal more than 50% of their countries’ combined GDP. Yields on investment-grade debt worldwide average less than 1%, while the amount of debt with yields below zero topped $18 trillion in 2020. Yields on junk bonds have never been lower as investors accept little to own the riskiest debt. Global equities continue to rally despite near-record high valuations. Bitcoin surged to a record as some investors worried about the value of traditional currencies. 2020 has certainly laid down the foundations of a new market model paradigm.


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    As an Investment Consultant and Specialist, Pompeo Pontone is a Professional Investor with 25 years’ experience in the fields of Investment Management, Quantitative Finance & Derivatives Trading and Data Science.

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