Tightening cycles often end spectacularly in corporate failures and risks of financial contagion. After 13 years of ultra-loose monetary and fiscal policy, and an insatiable chase for yield creating a giant carry trade, the back end of this cycle was always going to create casualties as the cost of capital rose sharply and the liquidity in markets dwindled.

Global equities have pulled back 10-15 per cent since their highs 15 months ago, and long-term investors are rightly asking if this market turmoil is an opportunity to put money back to work in stocks.