Keywords for 2017: Trumponomics, Reflation and EU Elections
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.
The Era of Investment Solutions
The long-term trends that have underpinned bull markets over the last twenty years no longer exist and investors will have to deal with unprecedented challenges. With low expected returns across asset classes and risk on the rise, he expects the role of asset managers to evolve from product provider to solution provider. In the future, asset management will be about delivering to clients investment solutions that are measurable against concrete economic goals. The era of solutions will require a rethinking of product design, risk management and portfolio construction, as well as distribution models to deliver the investment experience that investors demand.