2016 outlook: Economic weakness, uninspiring commodity demand and more QE

With the US entering a new rate cycle and global growth still weak, industry experts at Investment Week's recent Funds To Watch event reveal how they think markets will perform in the coming 12 months, and where the key opportunities and risks lie.

Bruno Paulson, portfolio manager, Morgan Stanley Investment Funds Global Brands Although the Federal Reserve may raise rates, low commodity prices, weak economic demand, and high levels of debt are an unlikely environment to foster inflation and kick-start a new rate cycle. We believe it is more likely we see continued economic weakness (and political uncertainty) perforated by moments of positive growth and isolated pockets of pricing power. The mountain of debt and the level of overcapacity, both brought on by cheap money, have reached proportions that make it very hard for compan...