Investors are mostly optimistic and seemingly confident of sizable future gains, in spite of historically unfavourable valuations and a number of other risks that are re-emerging.
The current US economic expansion ranks as the third longest on record and markets seem content to assume it will continue indefinitely. We see scope for growing inflationary forces to surprise markets and precipitate disruption.
We examine some of the potential consequences for markets when the Fed removes the punchbowl of QE. Will it be as boring a process as Janet Yellen hopes?
We look at the challenge and importance of emphasising capital preservation over capital growth as market risks build.
If President Trump succeeds in eliminating the US trade deficit it would be positive for US growth, but could have concerning consequences for the global economy.