Economic and Strategy Viewpoint
In this month's Economic viewpoint our economists review the major developments that impacted markets in 2015 including China growth, Federal Reserve rate speculation and geopolitical pressures, as well as previewing what investors can expect in 2016.
We do not see a major turning point in the business cycle at this point, but the potential for inflation to return in Europe could see some currently out of favour areas of the market perform better in 2016.
Some investors believe that rising interest rates are bad for equity markets. These infographics, however, show that historically in the year following the initial lift-off for rates equity markets have, on average, performed robustly.
As focus on climate change intensifies, portfolio carbon footprints can be a helpful tool for investors but may not provide a complete picture of future risks and opportunities
Steve Cordell sees the business cycle remaining in the expansion phase in 2016 and discusses why economically-sensitive domestic consumer stocks should fare well in Europe.
Against a backdrop of sluggish economic growth and anaemic earnings, the importance of bottom-up stock selection becomes even more imperative for 2016.