NEW YORK, Dec. 22, 2016 /PRNewswire/ -- Voya Investment Management, the asset management business of Voya Financial, Inc. (NYSE: VOYA), today released its annual Global Perspectives 2017 forecast. Titled "A New Path: The Growth and Reflation Trade," this annual outlook, co-written by Douglas Coté, CFA, chief market strategist, and Karyn Cavanaugh, CFA, senior market strategist, looks at the impact of the U.S. elections on the markets, the Fed, economic policies, the U.S. dollar as well as other global and macro economic themes.
"The U.S. elections ushered in a new path with a populist uprising that voted out the incumbent party. The markets celebrated President-Elect Donald Trump's pro-growth economic policies worldwide with rising markets and rising yields," said Coté. "These are classical economic policies that promote free market capitalism through tax and regulatory reform." Other themes examined by Coté and Cavanaugh include:
- The U.S. elections ushered in a new path with markets worldwide celebrating the promise of pro-growth economic policies with rising asset prices and rising bond yields.
- In effect, the markets took the reins from the central banks, clarifying the likely path toward rate normalization — reflation — and away from unconventional monetary stimulus.
- The prospect of business-friendly policies also supported a corporate earnings turnaround — potentially higher growth, increased pricing power and higher after-tax net income — a boon to global business.
- The paradigm shift will provide unexpected returns — and risks — that may create both positive and negative extremes, making a case for broad global diversification.
While substantial risks and uncertainties remain, Coté and Cavanaugh believe that 2017 is positive for the following investment sectors and approaches:
- Broad global diversification on an increase in U.S. and global growth
- U.S. equities, especially mid and small cap, due to more leverage to growth and tax cuts
- Top sectors include financials, industrials, materials and consumer
- Fixed Income Bank Loans as hedge to rising rates and senior secured status
About Voya Investment Management
A leading, active asset management firm, Voya Investment Management manages, as of Sept. 30, 2016, more than $208 billion for affiliated and external institutions as well as individual investors. With 40 years of history in asset management, Voya Investment Management has the experience and resources to provide clients with investment solutions with an emphasis on equities, fixed income, and multi-asset strategies and solutions. Voya Investment Management was named by Pensions & Investments Magazine as a 2015 Best Place to Work in Money Management. For more information, visit voyainvestments.com. Follow Voya Investment Management on Twitter @VoyaInvestments.
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SOURCE Voya Investment Management