Global markets continue their positive momentum into 2017 on-the-back of the recovery in the US and stability in China, however stretched valuations around the markets are expected to weigh on sentiment over the next few weeks. An improving outlook for interest rates and strong commodity prices has driven a better yield outlook for the two major sectors of the Australian market. We remain positive on the premium to bond sustainable yield trade in an improving inflationary outlook. We expect the US Fed to be the only central bank to raise rates in 2017 with the rate of change to be slower than what the market is expecting. SHIELD approach continued to outperform in a rising bond yield outlook by picking quality sustainable yield ideas at reasonable value. (VIEW LINK)