Despite the optimism, we enter the 2017 year with a number of uncertainties. Global equity markets have moved quickly to anticipate the return of global growth and an end to the deflationary ‘lower for longer’ central bank interest rate cycle of the past 7 years. US equity markets (Dow Jones, S&P 500, NASDAQ and Russell 3000) all registered new all-time highs through December, as investors embraced the prospect of ‘Trumpenomics’ and the potential end of a 35-year bull market in bonds. Equity markets have embraced the prospect of reflation with gusto, with the return of ‘animal spirits’ and an almost unbridled optimism for the calendar year ahead. The optimism is not misguided. Assuming Trump and team can successfully implement their advertised policies, there is obvious economic upside from the proposed mass fiscal stimulus measures, regulatory changes and corporate tax cuts.