Dear colleague, happy new year! 2016 is shaping up to be an extremely volatile year to say the least. The key risks for 2016 stem from two factors:
- Sharp drop in energy prices that persists
- Fed starting to raise rates
Energy has had historic declines in 2015. The main issue is not the oil price per se, but the way it impacts corporate borrowers and sovereign wealth funds abroad.
We did a deep dive into the drivers of the upcoming instability for 2016, and outlined the scenarios to use in testing your clients’ portfolio vulnerability. This research has been published by Financial Advisor Magazine; you can read it HERE: