The latest edition of UBS Asset Management's Economist Insights, authored by Joshua McCallum and Gianluca Moretti, speaks about market resolutions for 2016. Joshua has been Senior Economist with UBS Asset Management's Fixed Income area since 2005, and prior to this he was a macroeconomist at the UK Treasury. Gianluca joined the firm in 2010 from the central bank of Italy.
Based on the experiences of 2015, they once again suggest some New Year's resolutions for the market. Among others:
- I must behave like an adult if I want central banks to treat me like an adult;
- I must acknowledge that lower potential growth mean searlier rate hikes;
- I will start the year with more humble expectations of growth;
- I will treat emerging markets as emerging (yet again);
- I will think of Greece as a holiday destination, rather than as destroyer of the Euro;
- I will recognize that the global economy is diverging.
You can download the full document in the following link.