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The new abnormal

| Posted by: Paul Donovan | Tags: Paul Donovan

  • This is the final morning call of 2016. Normal service will resume on Tuesday, 3 January 2017.
  • This year has been interesting, and 2017 promises to be just as exciting. The world is not facing a new normal – with past traits continuing in a modified and less prosperous form. The world faces the new abnormal, where past normalities provide little guidance to the future.
  • In 2017, we should consider whether politics really matters (short term not so much, long term yes); where trade is going (protectionism, changing models of trade, capital for labor substitution); pressures on the dollar (we save in dollars and spend in euros – and spending should rise); and why inflation matters (it is more visible, but still a local issue).
  • I would like to take this opportunity to wish everyone as prosperous a 2017 as circumstances will allow. And to those who have tuned in to the comment over the course of 2016, thank you for listening.