2017 Market Forecast....
Recently read an article regarding what Goldman-Sachs thinks to be the 10 market themes in 2017.
They are:
- Financial assets can reasonably able to expect more upside — but stress that these returns will still likely remain low.
- US fiscal policy under the Trump presidency should be pro-growth.
- Worries regarding Trump's trade policies are overblown.
- The low growth in emerging markets in only temporary.
- The Yuan will keep devaluing its currency to deal with China's trade deficit.
- Innovative monetary policies will move towards measures like "funding for lending" schemes.
- Corporate revenue growth will focus more on the bottom line as supposed to the top line, which thus will result in modest growth.
- Trump's economic policies, if carried out, will lead to inflation as he is going to emphasize tax cuts, infrastructure and defense spending.
- Innovative policy innovations will "target the intermediary cost of supplying short-term bank credit rather than the market cost of borrowing via long-term public debt."
- The Federal Reserve is most likely to ease financial conditions.
In short, these ten points could be summarized as higher growth in the markets with higher risk, but only slightly higher returns.
Do you agree with Goldman's forecast for the market in the upcoming year? Why are why not?
