May edition of Portfolio Construction: The Power of Zeros
It has been 10 years since stock markets bottomed in 2008-09 following the financial turmoil caused by excessive leverage. Since then, many central banks globally have reduced interest rates to zero and collectively injected over US$10 trillion dollars into the economy. If you are wondering how many zeros there are in 10 trillion, the answer is 13. That’s $10,000,000,000,000! While the power of zeros has been effective in boosting both investor confidence and economies globally, we have made a few observations — read more.