From AMP:
With 2016 winding down and the New Year approaching, the global reflation theme is broadening. 2017 is likely to be a year of “reflation contagion”.
A reflation contagion is going to be backed by the reversal of the post GFC aversion cycle and the likely emergence of an opposing virtuous cycle where expectations for improved growth prospects and still friendly monetary policy giving way to higher inflation expectations and higher bond yields leading to reduced hunger for yield.
