UBS: Seven pieces of 'relationship advice' for markets

Global markets have had a volatile relationship with the central banks this summer, as the US Federal Reserve began hinting at tapering its asset purchasing programme.

Most asset classes experienced a strong sell-off in June as nervous investors rushed to take profits from their holdings and hide in cash as the Fed's chairman Ben Bernanke (pictured) hinted at a possible end to QE. As markets are being "teased" by the central bank's QE decision, UBS fixed income economists Joshua McCallum and Gianluca Moretti offer seven pieces of "relationship advice" for the markets. 1. Think about what your partners wants, not what you want The market craves certainty, but central banks need the flexibility to react to the data as it changes. The two demands ar...