Stocks, bond yields and the dollar are all falling, yield curves are flattening and sterling is marching higher. The "reflation" trades of 2016 that were supposed to mark a turning point in global markets are fading... it is now unraveling, in large part due to a clear slowdown in U.S. growth and signs that global inflation is leveling off.


What is clear is that much of the conviction with which investors went into 2017 has been lost. This week, Goldman Sachs ditched its long-standing bullish call on the U.S. dollar, and Deutsche Bank did likewise with their gloomy sterling outlook.

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