The old adage, “Don’t fight the Fed” – meaning investors should not bet against investments that benefit from Federal Reserve policies – has been modified to read “Don’t fight the Feds” by analysts at Asia-based investment house, Komaki Group.

The new maxim featured prominently in the firm’s latest client newsletter in which it focused on the effects of the policies of several central banks on global equity markets.

“It’s as if every major central bank is on a crusade to weaken its currency and increase liquidity ostensibly to prop up their economies,” said an Komaki Group researcher alluding to the quantitative easing programs and interest rate cutting cycles being implemented by the European Central Bank, the Bank of Japan, the Reserve Bank of Australia, the People’s Bank of China and many others.

“Based purely on fundamentals, equity markets can appear overvalued but as soon as you factor in the liquidity deliberately being created by central banks, they start to look relatively cheap. China’s Shanghai Composite and Hong Kong’s Hang Seng Index are up 40% this year alone. The German Xetra DAX is flying too,” explained the researcher.

In light of the less-than-stellar first-quarter earnings season and a weak set of economic data points from the United States, Europe, Japan and China, it should be ever more clear that the Federal Reserve is going to remain hesitant to raise short-term interest rates while the European Central Bank.

China’s central bank, the PBoC (People’s Bank of China) recently cut interest rates for the third time in 6 months as more signs emerge that the country’s broader economic slowdown may be starting to impact upon the labor market.

The Reserve Bank of Australia recently cut rates to all-time lows as the rout in iron-ore prices, the country’s number one export, hits tax revenues hard and the employment market deteriorates.

Komaki Group says that investors without exposure to equities could be missing out on attractive returns by remaining in cash or low-yielding assets.