Capital Perspectives: 2017 Capital Markets Forecast Revisited

Now is a good time to review the developments in the economy and financial markets. In some areas, we are very encouraged by developments that further embolden our initial views, whereas we have been surprised in other areas and have adjusted portfolios accordingly. Overall we remain comfortable with our overweight to risk assets and underweight to core fixed income. It’s the details of the risk overweight that have changed the most. And emerging markets could present the greatest opportunities for total return on a risk-adjusted basis.