While 2016 was generally a passable year for investors, it has set up a worrying misalignment between valuations and fundamentals on financial markets.
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Our asset-allocation model finds that the reflation rally has left valuations stretched. Nany asset classes appear to offer minimal, if any, prospective returns over the next couple of years.
Outlook commentaries at the outset of 2016 were noticeably devoid of cheerleaders for the eventual winners, while prior year winners had plenty of fans. The same could happen again in 2017. Click here to read full article
As we head into 2017, higher bond yields are undermining bond-sensitive stocks while commodity stocks are doing well. This trend is likely to last into the New Year, especially if doubts build about the Australian economy, says Martin Conlon, Head of Australian Equities.