A 2017 outlook: 10 predictions for the year ahead
If there was one takeaway lesson for 2016, it was “conventional wisdom” is not necessarily predictive. Conventional wisdom told us Britain would remain in the European Union, Hillary Clinton would be the next U.S. president, and any team besides the Chicago Cubs would win the World Series. Like any period of change, this one will offer both challenges and opportunities for global investors (and for bookmakers). Although we don’t promise to get it right in 2017, we are firm believers in having a view and strategizing accordingly. Here are our top 10 predictions for 2017.
1. U.S. interest rates will rise modestly
After promising a more hawkish approach following its initial rate hike in December 2015, market events intervened to hold the Federal Reserve at only one rate hike in 2016. This reluctance or inability to tighten policy followed a neatly established pattern of the markets doing the Fed’s job for it. While we expect to see continued echo