Policy "Trumps" Cycle
2017 Market Outlook
By Richardson GMP's Asset Management Team
This bull market is like a fine wine that keeps getting better with age. In its eighth year, most markets experienced double digit returns. Moreover, earnings growth has returned and there is a renewed sense of optimism for the global economy. The U.S. markets are at all-time highs while Canada is a stone’s throw away. Bonds sold off, but with credit spreads narrowing, the damage was limited. Commodities posted their first yearly gain in the past six. The market is giving OPEC and Trump the benefit of the doubt. OPEC said that it will follow through with promises to cut production, Trump said that he will enact market-friendly tax and regulatory legislation.
As we roll into 2017, the glass appears half full. Our 2017 Market Outlook explores what might be coming this year.
2016 – An American classic – a closer look at the year that was.
Deflation to reflation – if bond yields continue to rise then deflationary strategies that worked in years past are in trouble, while reflationary strategies will be the winners.
Economically, the cycle is strong – The data globally has been improving over the past six months and our market cycle model continues to favor a continuation of the current cycle.
Bring on the big “G” – Populist votes are triggering many governments to back off austerity and to turn on the government spending taps.
Is it finally time for the return of Capex? There are many positive indications that we could see a strong rebound in capex this year.
Investment risks for 2017 – Three things to watch out for this year.