From higher fiscal spending to rising inflation, Goldman Sachs' economic research team gave investors its favorite 2017 predictions for the markets and global economies Thursday. Many of the investment bank's projections were directly impacted by the surprising election of Donald Trump and his stated economic policies.
Goldman's Charles Himmelberg sent the report titled "Top Ten Market Themes for 2017: Higher growth, higher risk, slightly higher returns" to clients Thursday.
Goldman's 10 themes are:
- "Expected returns: Only slightly higher."
- "US fiscal policy: A pro-growth agenda."
- "US trade policy: Concerns are likely overdone."
- "EM risk: 'Trump tantrum' is temporary."
- "Trump and trade: Hedge with RMB."
- "Monetary policy: Focusing the toolkit on credit creation."
- "Corporate revenue growth recession: Signs of inflection."
- "Inflation: Moving higher across DM."
- "The next credit cycle: Kinder and gentler."
- "The 'Yellen Call' 2.0: Now with contingent knock-in."
Here's more detail on four of Goldman's 2017 themes.