The overarching investment theme heading into 2016 is the divergence of global monetary policies among major central banks. Ultra-low interest rates alongside substantial amounts of quantitative easing by the Fed, BoE, BoJ, and ECB have driven strong and broad based returns in financial markets since the recovery. 

This was particularly the case for risk assets. This was the precise aim of stimulative conventional and unconventional monetary policies,designed to push investors further out the risk frontier. 

The more risky corporate and provincial bonds fared better still, yielding between 5% and 7.5% per year, as spread compression vis-à-vis government bonds boosted capital gains further. 

"With nearly $3 trillion in excess liquidity, the Fed is expected to begin normalizing its balance sheet over the medium-term. This will be a passive process, at least at first, with the Fed unlikely to sell securities outright, instead letting them run-off as they mature", says Economics TD.