ETF Trends publisher Tom Lydon spoke with Mike Arone, State Street Global Advisors Managing Director & Chief Investment Strategist, at Inside ETFs conference that ran Jan. 22-25, 2017.
Arone spoke about SSGA’s three big themes for advisors: income at a reasonable risk, begin to position portfolios for a more reflationary environment and protecting portfolios from volatility in 2017.
Managing Risks and Opportunities in the ‘New Abnormal’
Get ready to say goodbye to slow growth, low interest rates and benign inflation. Be prepared for the decline of monetary policy as defined by central banks and global institutions. Bid adieu to the embrace of globalization. And say hello to the new abnormal, says Michael Arone, chief investment strategist at State Street Global Advisors.
Going forward, the policies of the World Bank, International Monetary Fund, United Nations and similar institutions will be questioned and, possibly, ignored. Monetary policy is likely to be replaced by fiscal policy, including infrastructure spending and tax reform.
“Call it the end of fiscal austerity,” Arone says. The relatively free movement across borders that people and labor have enjoyed over the past 20 years will start to reverse course. And trade deals will be abandoned or renegotiated.
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