Trump’s policies will be key for the financial markets in 2017 - Bloombergtv.bg
2016 started quite negative for the markets to finish more positively at the end of the year. At the end of 2015 we had an increase in interest rates in the US, which combined with the devaluation of the yuan and the decline in oil clouded the very strong investor sentiment in early 2016. At the end of 2016 we are about to send the year with a new year’s rally on the markets. However, fixed-income instruments and government securities (SECs) suffered, whose profitability rose and their prices decreased accordingly. This is what the financial analyst from Sofia International Securities Pavel Bandilov said on the air of Bloomberg TV Bulgaria in Invest/Or.
For next year, I expect consolidation of the bond market, with US securities calming down at yield levels of about 2.5%.
At the end of 2016 we traded the effect of Trump’s election campaign, which promised strong tax cuts. Along with this, we have expectations that in the US we will move from monetary to fiscal incentives, which makes us think that inflation will increase next year, which will give its different reflections on the respective asset classes, Bandilov said in his assessment of what happened in the markets in 2016.
Trump’s election campaign was filled with promises of measures that scare her and are well accepted by investors. It is these policies that will depend on how it will start 2017 for the markets as well.
With regard to Europe, however, the risks are too high and we remain neutral in this market, the financial analyst commented.
I hope the BSE movement continues next year. At this stage, what moved the market was the transfer of funds from pension funds to the exchange-traded fund Expat Bulgaria SOFIX. However, in order to have a lasting and stable increase, we need new investments and attracting funds to enter the market, and this can only be done through quality companies, said Bandilov.
Read more about what 2016 was for the markets around the world and in Bulgaria and what to expect in 2017 in the video from the broadcast:
