Henderson: How will growth and inflation shape fixed income markets in 2017?

Members of the Fixed Income Investment Strategy Group (ISG), Phil Apel, Head of Fixed Income, and Andrew Mulliner, Portfolio Manager, reflect on the factors driving markets into 2016 year-end. They pin-point politics, central bank policy and signs of rising inflation, while noting that the impact of Donald Trump’s election was exaggerated given the momentum of bond markets prior to November. The election did, however, act as a catalyst for the themes of reflation and growth.

Looking ahead, Phil explains that the ISG is relatively optimistic on growth, which is expected to be at healthy levels but not so high as to require sharp monetary policy tightening.  

Summary points: 

• Politics dominated markets in 2016 as electorates voted for change
• Headline inflation rates generally moved up towards central bank targets
• While the election of Trump catalysed some of the themes, the momentum in the bond markets was already in place prior to his election
• Central bank policy divergence is likely to become more extreme in 2017

Die Wertentwicklung in der Vergangenheit ist kein zuverlässiger Indikator für die künftige Wertentwicklung. Alle Performance-Angaben beinhalten Erträge und Kapitalgewinne bzw. -verluste, aber keine wiederkehrenden Gebühren oder sonstigen Ausgaben des Fond.

Die Informationen in diesem Artikel stellen keine Anlageberatung dar.