THE CAPITAL OBSERVER
January 2017 - published on 24th January 2017
As the economy decelerates, Bond Yields should top and start to retrace
The Dollar could be topping out, hedging US assets could lead to outperformance
Reflation trades should top out and start to retrace during Q1 2017
The shift towards more reflationary policies by many growth-starved countries around the world is still largely an aspirational one, offset in many instances by slowing trade, poor demographics, weak productivity, and heavy debt burdens. As such, we think that the cross-currents of near-term reflationary stimulus juxtaposed against the aforementioned structural macro headwinds likely mean more volatility lies ahead for investors again in 2017.
KKR GLOBAL INSTITUTE