Protectionism, fiscal stimulus and US Fed’s rate increases to shape global investment trends next year
US financials, emerging market equities and precious metals good investment choices for next year, say State Street analysts
Rising protectionism, the focus on fiscal stimulus and rate increases from the US Federal Reserve would have a major impact on investment returns in 2017 and investors are better advised to diversify their yield avenues, analysts said.
“Seismic geopolitical events, most notably the Trump presidency and Brexit surprises, marked 2016 as a game-changer across the geopolitical landscape, with significant implications for economies and markets alike,” said Rick Lacaille, global chief investment officer for State Street Global Advisors (SSGA), the asset management unit of Boston-based State Street Corporation.
“Populist politics and anti-globalisation sentiment have set the stage for significant policy changes in 2017 and beyond,” Lacaille said.
“In our view, some of the leading themes that have served investors well over the past several years are shifting in the face of a changing investment backdrop,” he added.
In specific, one of the leading themes next year is a focus on fiscal policy, as many countries and regions are more inclined to employ fiscal stimulus in 2017, such as continental Europe, UK, Canada, Japan, China, and the US.