ETF Securities Outlook: Taper tantrum 2.0 unlikely

We believe a ‘taper tantrum’ 2.0 is unlikely in 2017, as cautious central bank actions and better communications may diminish market dislocation risks.

• We expect the Euro to benefit as the European Central Bank (ECB) ceases its asset purchases this year. Meanwhile, the Bank of Japan (BOJ) may step up its asset purchases and weaken the Yen.

• The Bank of England (BOE) may follow in the US Federal Reserve’s (Fed) footsteps and raise rates but maintain a stable but elevated balance sheet. http://ow.ly/oMpq30brcDx