About This Episode

Northern Trust, one of the world’s largest asset managers, foresees 2022 as a year of transitions. Central bank fiscal policy might become less accommodative or stimulative through a reduction in bond purchases. After years of virtually no inflation, investors are becoming more aware of the importance of hedging against it, given its recent sharp emergence. While there are indications of inflationary pressures decreasing in key supply chain bottlenecks, this is countered by strong housing and labor markets.

About Our Guest

Jim McDonald is an executive vice president and the chief investment strategist for Northern Trust, which offers advisors mutual funds, ETFs, and separate accounts across a wide range of asset classes. He is responsible for overseeing the strategic and tactical asset allocation policy for its institutional and wealth management clients globally. He chairs the Northern Trust Tactical Asset Allocation Committee and is a co-portfolio manager of the Northern Global Tactical Asset Allocation Fund (BBALX). In addition, he is a member of the Investment Policy Committee and trustee of the Alpha Strategies hedge fund from 50 South Capital, an alternatives asset management firm which is a wholly-owned subsidiary of Northern Trust.

Show Notes

Here is a link to Northern Trust’s 2022 Outlook. It builds off the firm’s long-term Capital Market Assumptions report, a forward-looking, historically aware five-year forecast that guides the firm’s strategic asset allocation recommendations.