Jim McDonald, Chief Investment Strategist, Northern Trust and Colin Robertson, Head of Fixed Income, Northern Trust Asset Management weigh in on 2022 economic growth trends, monetary policy and asset allocation drivers.
Despite continued market volatility, political transitions, and Covid variant fears in 2021, the U.S. equity market has delivered strong returns and overall performance. Traditional fixed income markets, on the other hand, have struggled to produce yield in the current low interest rate, high inflation environment. McDonald and Robertson predict that a tightening monetary policy and a series of rate hikes will ease inflation in 2022, but will not necessarily erode equity market growth potential. McDonald and Robertson make the case for risk-on assets in 2022, overweighting developed markets and U.S equities over emerging markets and high yield over investment grade.
To learn more, register & watch Northern Trust’s webcast: 2022 Outlook: A Transition Year. Lear how the central-bank moves, corporate profits and interest rates will drive returns and asset allocation in the coming year. Join our Chief Investment Strategist and Head of Fixed Income as they explore:
- Economic growth: durable trend, tamer inflation
- Monetary policy: tapering and rate hikes
- Portfolio positioning: a bias toward risk-taking
Northern Trust is a global leader in asset management with $1.2 Trillion in AUM across institutional, wealth and retail channels. Register Now