In our view, investors should position themselves for a rising interest rate environment in 2017. Developed market (DM) economies will be leading growth in 2017, taking over from emerging markets (EM) which have previously supported global growth rates. The key to the DM’s recovery will be how the US markets react once Trump is inaugurated early in the new year. The US could very well be in the early stages of an economic recovery. We expect capital expenditure and productivity will propel the US economy and Europe is likely to continue to recover, albeit at a slow pace.