BAML Predicts Market Fragility Peaks In 2017, As “central bank control over markets wanes”

There are “16 things from 2016” that investors need to know for 2017, a Bank of America Merrill Lynch report notes, as it speculates volatility will rise and the “low vol stock bubble in 2016 is at risk regardless of fiscal outcome in 2017” and European political driven volatility will persist in 2017. Amid this volatility, market fragility is anticipated to peak and a “buy the dip” mentality that the report notes has been experiencing on shorter and shorter time horizons will be a trend that could extend into 2017 with some modifications.

Europe likely to be the source of political volatility...