Global markets are moving from deflation and low rates to an inflation and rate rising environment. Recovering economies will deliver growth while struggling economies will see capital outflows. The changing global dynamics will continue to push investors towards a better equilibrium between growth and yield. We see this transition driving even higher returns for GARY stocks in 2017. The inflation rally since October has been driven by better than expected US and China economic data, US Fed rate cycle expectations and potential fiscal stimulus in US. The market will soon move from optimism to execution risk due to a higher interest rate outlook. We expect to see a higher level of macro volatility in 2017 due to US/China growth outlook and EU breakup risks. (VIEW LINK)