These indicators show something has to give for investors

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The historical relationships between investor sentiment, risk and uncertainty have broken down and while this doesn’t necessarily mean things will end badly for investors, something has to give.

Citi credit products strategist Matt King is astounded that markets held up as well as they did in 2016 despite political upheaval. In his Global Credit Outlook 2017, Mr. King noted that the highest risk segments of global markets – including collateralized loan obligations (CLOs), high yield corporate debt and commodities – outperformed despite two major political shocks, Brexit and the outcome of the U.S. election.