(Bloomberg) -- As investors look ahead to 2017, uncertainty around European politics as well as U.S. economic and monetary policies point to a year in which persistent volatility will challenge them even as global growth prospects improve.

With political risks seen keeping investors cautious on Europe, strategists agree the dollar is a buy in the new year as "Trumponomics" should boost growth, inflation and interest rates in the U.S. That's not good news for government bonds, which are seen losing out to credit and equities in terms of returns.

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