Over the next few months, the following risk factors will be on our radar.
- Increasingly persistent doubts about the implementation of Donald Trump’s economic promises.
- The possibility that economic growth will disappoint investors, a factor not yet priced into the markets.
- The fact that the bond market does not expect very big interest rate hikes over the next two years.
- A more pronounced than expected tightening of the Fed’s monetary policy.
- The upcoming elections in Germany (September 2017) and in Italy (May 2018).
- The Brexit negotiations and their effects on the U.K. and the euro zone.
- Decelerating growth in China and its impact on the global economy.
- The economy’s incapacity to withstand very high borrowing rates.
Here are some interesting reads:
