Keywords for 2017: Trumponomics, Reflation and EU Elections
December 19, 2016
Reflation trends are likely to continue in 2017 thanks to broader fiscal easing, a positive outlook for commodity prices and Central Banks’ sustained support. We believe investors can exploit 2017 growth opportunities, currently through Japanese and US equities. In fixed income, we believe inflation-linked bonds in the US and in Euroland are pricing in an inflation pattern that is too low. Credit markets in DMs are expected to outperform sovereign bonds.