An order of magnitude of the effects of central bank money creation on share prices in OECD countries

We estimate that the amount of money supplied by central banks in OECD countries will increase by USD 10 trillion during 2020. We believe this additional money supply will be invested in other financial and real estate assets to rebalance investors' portfolio structure, and, based on this structure between equities, bonds and real estate and reactions seen in the past, we seek to determine the additional rise in share prices that can be expected in OECD countries as a result of this additional money creation. It could be in the order of 6% to 23% depending on the estimation method, on top of the recovery in share prices caused by the improvement in the economy and the fall in risk aversion.