However, global monetary policy was moving from co-ordinated quantitative easing and near-zero interest rate policies to one of divergence, with the United States Federal Reserve lifting interest rates for the first time in nine years.
The Fed move was well signalled and anticipated by markets but it came with several potential implications, she said.
Weaker commodity prices due to the stronger US dollar, increasing pressure on Beijing to devalue the renminbi, slower emerging market growth and rising debt burdens would increase market volatility at a time when most asset values were regarded as fully priced.
"We are adjusting our asset allocation by reducing exposure to international equities and increasing our cash weighting.''
The collapse in commodity prices, in particular oil, continued as China wound down its fixed asset investment and culled excessive capacity in primary industries, Ms Kinnaird said.
The collapse in commodity prices was still yet to be fully felt in the global economy as the spending power of consumers got a boost without adding to their debts.
Higher real incomes should provide a boost to growth next year.
That was being reflected in the euro zone now, where more pent-up demand existed, than in the US, which had a large shale oil industry hit by the collapse in prices.
The renewed decline in the price of oil during the second half of the year, along with the improved cash position of many households, left it likely a boost to consumption should support several economies in 2016, she said.
Commodity prices were expected to remain weak and oversupply was now well understood.
The surprises were more likely to come from the demand side.
With China's fixed investment rate slowing, it would put hard resources and industrial metals at a distinct disadvantage, with knock-on effects for large exporters such as Australia.
Economic rebalancing in China might have a positive effect on the demand for other commodities, such as high-end foodstuffs and livestock, with positive implications for producers and exporters such as New Zealand, Ms Kinnaird said.
The strength of the US dollar over the past year was more reflective of a relative weakness in the rest of the world rather than higher inflation and interest rates in the US.
Globally, the stronger US dollar had helped depress commodity prices, contributed to the fall in global trade and stifled the flow of capital to emerging markets.
Domestically, the stronger US dollar had weighed on the US manufacturing sector, with activity declining over the past few months.
Divergent monetary policy by the Fed was likely to result in ongoing pressure on the dollar.
The forward outlook for rates would probably show hikes over the next year or so, she said.
"The global economy has shifted from goods to services, which now account for about two-thirds of global GDP. This is slowing global growth and the world now needs the US to become the consumer of last resort again.''
The stronger US dollar was boosting US consumption by lowering the prices of imported goods and services.
A stronger US dollar might cause a recession if pushed too far, Ms Kinnaird said.
The US dollar was the most borrowed currency in the world - borrowed by countries outside the US when global growth was stronger.
That pushed down the value of the US dollar and boosted commodity prices.
Now, global growth was slowing, foreign borrowers were being squeezed and repaying US dollar loans, helping to push the currency higher.
The strong US currency was adding downward pressure on commodity prices, which was suppressing global trade and stifling the flow of capital into in some cases highly indebted emerging markets.
