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Benedicte Gravrand, Opalesque Geneva:

Eclectica Asset Management’s Hugh Hendry, George Lee and Tom Roderick write in the firm’s Manager Commentary for December 2016 that they might be running a Trumpian portfolio; "With the economy’s debtors finally in the ascendancy, Eclectica is positioned for an anticipated mean reversion, being long the US debtor community and short the rest of the world’s creditor class."

They observe three thematic risks: Europe, Japan’s currency and the Chinese economy. Here is what they say:

• In Europe, they anticipate further duress in the political commitment to the European project as the success of Trump’s economic stimulus plan keeps US growth humming along, leaving the continent badly exposed as a politically fractured economy without the resolve to implement successful growth strategies.

• The combination of Trumpian economics producing the long sought-after lift in inflation expectations globally, and Japanese 10-year nominal yields being trapped at zero by the Bank of Japan should mean the yen continues to weaken.

• And finally, there are appealing opportunities in Chinese fixed income markets arising from the flows of liquidity between the onshore and offshore markets, trades which generate positive carry should the status quo persist yet remain long volatility should pressure on the renminbi intensify in the face of a strengthening US dollar or slowing Chinese economy.

Eclectica Asset Mana......................

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