Not long ago, the question of how the actions of national authorities – and the US Federal Reserve in particular – impacted on their investment decisions would get a range of replies from investors. Some observed that their decisions were unaffected; others cited the old mantra that “you should never fight the Fed”.

Today, few investors would cling to these simple views. Most correctly realise the importance of a more dynamic approach that recognises that well-intentioned official actions are fundamentally altering risk-reward propositions in several markets. Not even relative-value investors, who have historically prided themselves on never having to take a directional view on the economy and policies, are immune to the impact of policy actions.