Guy Haselmann of Scotiabank checks the definition of a free-market economy, confirms that is not what we have today .. given the financial repression of “regulatory macroprudential policies conspiring with zero (or negative) interest rates & asset purchases to exterminate the markets’ ability to freely calibrate clearing market prices based on supply and demand factors. It is impossible for central banks to sustain controlling influence on market sentiment, investor behavior, correlations, and valuations, simply because effectiveness wanes over time.” 

LINK HERE to the Article

Some pointers for investors in an environment of long-term 0% interest rates & worldwide QE programs .. “Stock and bond diversification alone will not be enough to adequately protect a portfolio” .. Scotiabank’s Guy Haselmann suggests:
1) It is time to find ways to preserve capital. Return of capital strategies now trump return on capital pursuits. 
2) Where possible, transition from financial to real assets .. such as, real estate, farm land, collectables, art, other non-correlated & less-cyclical assets.
3) Cash has never had better optionality or a lower opportunity cost.
4) I remain a bond bull in long U.S. Treasuries for regulatory, technical, fundamental reasons. 
5) Find companies & countries with low levels of debt & stable cash flows.
6) Despite recent bad press, alternative investments should be considered.
7) Place larger premium on market liquidity & counter-party risk.