Neil Dwane, Global Strategist, discusses AllianzGI’s global outlook for 2016.
2016 looks set to offer a similar set of opportunities and risks to those that emerged in 2015. Economic growth will remain low and fragile, but we do not expect weakness in many emerging economies to drag all economies down into a global recession. Nevertheless, we expect monetary policy to remain extremely benign, with modest rate hikes in the USA in 2016 offset at a global level by potentially lower interest rates and more QE from Japan and Europe. Politics and geopolitics will add some additional volatility into the economic policy mix during 2016. We thus expect more asset market volatility in 2016 which may favour more active management investment styles, and render the recent trend of indexing and ETFs less able to deliver returns to clients. Clear investment philosophies and disciplined investment processes, which focus on the longer term, have the potential to allow AllianzGI to deliver attractive alpha returns to client portfolios during a time when beta returns may be low. http://goo.gl/BXzwXM