From RBC:
2017 Costanza Trades
It’s that time of year. Candy canes, holiday lights, and your inbox’s are surely cluttered with 2017 “Year Ahead” pieces. I find it hard enough to accurately prognosticate just a week or two out in these markets so I find it amazing bank research teams can predict what’s going to happen over the next 12 months. However, these pieces are useful in some regards as they are very good at nailing the consensus themes and are excellent counter indicators. For example, a well-known, large investment bank across the street from us had 5 of their 6 “Top Trades of 2016” stopped out in the first month of the year. Yikes.
