Macklow-Smith: Political Risk Is Front and Center

The video discusses the political risks that emerged in 2016, such as Brexit and the US election, and their impact on market reactions. It explores market psychology and predictions for 2017, including the potential effects of a Trump presidency and the rise of populism. The global economic outlook is analyzed, highlighting synchronized growth and the influence of oil prices. Finally, the video examines central banks' monetary policies, focusing on the Fed's tightening and the ECB's stance on QE.

What was a significant political event in 2016 that markets did not anticipate?

• The fall of oil prices

• The increase in commodity prices

• The Brexit referendum

• The rise of populism in Europe

Which factor is highlighted as crucial for the synchronized recovery in global growth?

• Decrease in oil prices

• Consumer spending in the US

• Political stability

• Recovery in commodity prices

How did consumer spending in the UK react to the Brexit referendum?

• It remained stable

• It powered ahead

• It decreased significantly

• It fluctuated unpredictably

What is the stance of the ECB regarding monetary policy as discussed in the video?

• Neutral

• Aggressive easing

• Aggressive tightening

• Fairly dovish

What is the main issue with determining if the ECB's actions were tapering?

• Lack of clear communication

• The reduction in QE amount

• The extension of QE duration

• The expansion of the ECB balance sheet