Retreat, regroup and rebound

There is good news and not-so-good news as we head into 2016.

The not-so-good news is that the world economy still lacks momentum, with global growth unlikely to pick up next year. We expect growth of 3 percent, the same as 2015. But the good news is that, despite the lack of momentum in the world economy, we expect confidence and market sentiment, particularly in emerging markets, to improve.

Emerging markets have been in retreat in 2015, but there are reasons to be cautiously optimistic in 2016. The two main reasons behind the negativity this year - the US Federal Reserve (Fed) interest rate hikes and the risk of a "hard landing" in China's economy - should be much less of a concern in 2016. It is time to regroup.