- 2016 will be difficult year for stock markets with very limited gains, similar to 2015 - Federal Reserve has started tightening monetary policy but bond markets will continue to see strong inflows - Subsequent interest rate raises by Federal reserve will be at a very slow pace, yields on sovereign bonds will not move up rapidly primarily due to the safety perception of bonds compared to stocks - Even though the U1 unemployment is dropping, wage growth continues to be low which is why inflation will be tame, expect energy, food and other commodities to be continue to be low - Geo-politics will continue to make headlines throughout 2016. Russia is likely to maintain its gains in military diplomacy. Expect escalation of armed conflicts in Middle East. - In light of these highlights, I recommend to buy ITA - US dollar will continue to appreciate which will hurt foreign income of US based corporations - HEWG seems to be an attractive option to play the currency differentials - Pre