Markets outlook for 2017

Synopsis

The market is fully expecting the Federal Reserve to raise rates on Wednesday, as discussed by Luca Paolini, chief strategist at Pictet Asset Management. He anticipates that the Fed will indicate a more hawkish stance due to significant improvements in inflation and economic growth. Paolini notes that expectations for the Fed fund rate have risen, surpassing the Federal Reserve's own estimates for the first time. He expresses confidence in global growth translating into corporate profits, highlighting a positive trend in inflation and rising oil prices. Paolini predicts earnings growth between 10 to 15 percent for 2017, despite a challenging bond market, which experienced its worst month since the 1980s in November. The discussion emphasizes the importance of the Fed's upcoming announcements and their implications for the market outlook in 2017.