In a world where virtually every major economy is being flooded with cheap liquidity, investment professionals can only muster one solution: don't fight your central bank.
The practical application of this philosophy means that investors should invest their money in markets where these central banks are most active –or markets that stand to benefit the most from massive monetary easing – rather than trying to reap returns elsewhere.
The Federal Reserve is leading the charge with its unlimited bond buying targeted toward mortgage markets, its third iteration of quantitative easing in four years. Meanwhile, the European Central Bank, the Bank of England and the Bank of Japan are taking similar actions, all in an effort to re-inflate stagnant economies.
"Respect what the Fed, ECB and BoJ are telling us," Pimco CEO Mohammed El-Erian told CNBC this week. "They are all in, and they are going to be in there supporting asset valuations." (Read more: 'Fiscal Cliff' Deal Won't GuaranteeGrowth: El-Erian.)
So what exactly does the 'central bank trade' resemble? In a normal world, stock and bond prices would not be rising in tandem. This being the new normal, however, both asset classes are being inflated by monetary policy –which means investors should go along for the ride, analysts say.
El-Erian suggests that for investors, shorter and intermediate term Treasuries are a worthwhile investment bet, even though ultra-accomodative policies will mean investors will not reap the benefit of high yields.
"The front end will be more stable anchored both by purchases by the Fed and the [policy statement] language about keeping interest rates at zero," the bond guru said. "The long end is going to be more volatile and more dangerous, so it depends where on the curve you look."