Six beliefs driving the macro outlook for 2017 - Hermes

Looking to the year ahead, Williams sees scope for reflation, inflation and political contagion but suggests it is still too soon to bet on any ‘great rotation' of an en masse shift out of bonds as that would mean taking on the central banks "Speculation, rightly, that major economies will open their fiscal box is currently causing ‘reflation trades' to puff up growth assets, raise inflation expectations, and make the 30-year bull-run in government bonds look even staler," he says. Yet, while this should be better for growth, he warns, financial markets may be ignoring the new global ...