A lot of things happened in 2016 that most people didn’t see coming: Prince and David Bowie died.
The Chicago Cubs won the World Series for the first time in 108 years. And among economic and political shockers, the U.K.’s vote to abandon Europe’s trade bloc, dubbed “Brexit”, and Donald Trump’s stunning presidential win, despite polls that indicated both outcomes were unlikely, left financial markets gobsmacked.
The lessons for investors from the litany of 2016 surprises for next year: Brace for a whole new trading landscape as the political bombshells sink in with policy makers.
Analysts say the rising populism sweeping across the U.S. and Europe is forcing politicians and central bankers to shift their focus and priorities, portending a sea change to the regime investors have grown accustomed to since the financial crisis.