GTC WM Trendline – December 2016

Global: The gamble of global fiscal stimulus.

The year 2016 began with a shaky start with risk assets selling off across the board, oil declining to $28 a barrel and investor concerns focusing on the possibility of a significant Yuan devaluation. World trade remained pedestrian and in spite of liquidity being freely available, the world economic engine continued to chug along.

The one spark of hope remained: the United States where green shoots of economic recovery began to appear. The two shock political events of 2016, Brexit and the election of Donald Trump as US President were certainly the catalysts which helped bring about a change in the global economic outlook.

Thankfully the year ended on a more positive note for developed world equity markets, with the MSCI World Equity Index returning 8.15% y/y in total return terms whilst emerging markets returned 11.60%, despite displaying considerable volatility and a final quarter returning a negative return of -4.08% as measured by the MSCI Emerging Market Index.

Download the GTC WM Trendline – December 2016

Pop Up WordPress Plugin