Risk/reward within an uncertain government-influenced fund future

Government interference in capital markets has never been so great in the post-war era and the contradictions within asset values are becoming ever more apparent.

Most of the movements in the markets since March have been a direct consequence of government actions. They have rigged the game to ensure a desired result. By anchoring interest rates at all-time lows, from 0% to 1% in the US, UK and Europe, two large consequences have occurred. Firstly, existing debt servicing becomes possible thus avoiding bankruptcies, and secondly, cash balances yield nothing and are forced to be put to work. Add to this an exceptionally large injection of liquidity into the system by governments and distortions begin to arise. The effect so far is that the liquidit...