Generic Links

 

Welcome to RL360°'s

dedicated financial adviser website

For financial advisers only

Not to be distributed to, or relied on by, retail clients

Online Services Secure online services

Sign in | Register

Schroders - 2016 review: The underdogs bite back

Economists at Schroders take a look at what 2016 taught us and how 2017 may turn out.

In summary:

  • 2016 ended up being a reasonably good year for markets. However, the year will be remembered for Brexit, Trump and Renzi, partly due to the unexpected nature of some of the results, but also the potentially profound shift in international relations in coming years.
  • Overall, the divergence in monetary policy that was expected played out, and is likely to remain a theme for 2017. Investors have bought into the Trump or “reflation trade” on hopes of stronger growth, rising inflation and higher interest rates. We factor a fiscal boost into our forecast, but the impact will not be felt until 2018.
  • Political risk shifts to Europe in 2017 with the risk of an upset in France or Italy potentially threatening a breakup of the euro.

January 2017

Please note that these are the views of the authors forSchroders and should not be interpreted as the views of RL360°.

Author

Keith Wade, Azad Zangana and Craig Botham

Schroders Economists

January 2017

Please note that these are the views of the authors for Schroders and should not be interpreted as the views of RL360°.

360° fund links

A range of Schroders funds can be accessed through our guided architecture products

Oracle, Paragon, Quantum, Quantum Malaysia, LifePlan, Protected Lifestyle, Protected Lifestyle Lebanon and also through our PIMS portfolio bond.