News this past week:
- Markets climb on ‘Santa Claus rally’
- ECB extends quantitative easing programme
- Volatile week for Italian banks following referendum
- Encouraging trade data out of China
- Oil surges after more countries agree to cut production
James Klempster (CFA) of Momentum Global Investment Management shares his view:
As this is my final blog of 2016 I felt it an apt time to look back on the year and to look forward to some key issues for 2017. My colleague, Glyn Owen, will be writing a far more detailed review and outlook which will be published in the coming days . 2016 was a year of mixed fortunes for investors, a very weak start set precedence for what looks likely to be a decent year for equity markets. 2016 will be best remembered for its twin political surprises of Brexit and Trump, or Brump, if you will. Whilst both being seismic-scale political events, the fact that their respective domestic markets brushed them off underscores the fact that a macro or political story is not the same as an investment case. To put it another way – even if you had called both elections correctly, would you have positioned your portfolio to benefit from an equity rally in either case? Probably not.