So how should investors react?

So the hand of the state may curb corporate excess in the medium term - for the better, if companies and investors react in the right way.

Stock markets have been volatile as investors react to the daily saga of offer and counter-offer in the political negotiations.

This leaves them in an invidious position when trying to manage the transition away from ultra-loose monetary policy, as investors react to official signals in violent and unpredictable ways.