Thursday, December 15, 2016
2016 started badly for investors with worries about
global growth and deflation. But global growth turned
out okay &, despite political events, rising bond yields &
disappointing Australian growth, the end result has been
a constrained but okay year for diversified investors.
2017 is likely to see another year of okay & maybe even
slightly higher global growth, higher inflation, higher
bond yields after a pause and divergent monetary
conditions as the Fed tightens but other countries stay
easy. The RBA is likely to cut rates to 1.25%.
Most growth assets, including shares are likely to trend
higher, resulting in reasonable returns in 2017.
The main things to keep an eye on are US policy under
Trump (stimulus v trade wars), the Fed and the $US,
bond yields, various European elections, China and the
impact of the rising supply of apartments in Australia.
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