2017 has on one hand been an uneventful year, with equity and bond markets maintaining their upward trend. On the other hand, there have been several macro and market events that could have derailed the near-decades long bull market, such as the ever-challenging Brexit negotiations, Presidential elections in France, political uncertainly in Germany, unrest in Spain’s Catalonia region, rates hikes in the U.S. and of course North Korea.
How will markets fare in 2018 and what does the global economy have in store for investors? Positive growth, accommodative financial conditions and supportive sentiment point again towards a second year of synchronized above – trend global growth next year, while inflation will remain a focus point as it will shape monetary policy normalisation speed and magnitude going forward. The members of SYZ Asset Management Investment Strategy Group take a look at key important factors that could impact investor returns in the New Year, by focusing on Macroeconomics, Asset Valuations and Risks.