Artemis' de Tusch-Lec: Where next for equities in 2017?

The global economy is changing. In an increasingly reflationary environment, companies with strong brands and products - whose earnings are predictable and resilient against deflation - are falling out of favour.

Lower quality stocks in cyclical industries are seen as viable investments once again and are starting to compete with expensive defensives for investors' capital. Financials are almost investable. Equities are no longer priced as bonds, but as equities. How refreshing. Equities, bonds, property: Which asset classes will wrongfoot investors in 2017? Can this rotation last? We think so, but observe that is not the same as saying that equities are necessarily going higher. In general, a market where financials outperform consumer staples and industrials outperform healthcare is associat...