After a year of strong investment returns on risk assets, we enter 2018, a year likely to see sustained economic growth and good, albeit more limited returns. We believe the Next Generation, or Millennials, will emerge even more strongly as a major driving force in key realms of life.

Global economic growth should remain strong in 2018, as both advanced and emerging economies enjoy a synchronized upturn. Corporate capital expenditure should become a more prominent growth driver. While inflation is unlikely to rise much, central banks will reduce liquidity and raise interest rates in response to better growth.

Financial markets have again proven resilient to geopolitical shocks in 2017. With growth robust, inflation moderate and liquidity ample, interest rates should slowly rise. Equities should make further gains in 2018. Upside surprises to inflation pose a main risk.

Millennials are increasingly making headlines. They will soon be the dominant generation in the active working population worldwide. They are an increasing focus of politicians and corporates, shaping trends as citizens, employees, consumers and investors.