Northern Trust: Constructive 2020 Base Case as Fundamentals Return

The video discusses the market outlook for 2020, highlighting a shift from optimism to more realistic expectations. It covers growth and earnings forecasts, emphasizing the importance of fundamentals over multiple expansion. The discussion includes potential risks, such as trade issues and recession fears, and explores factor rotation in investment strategies. The video suggests a defensive investment posture, focusing on global infrastructure, real estate, and high-yield bonds, while considering central bank policies and interest rate cuts.

What is the expected growth rate in the US that could lead to mid-single-digit earnings growth?

• 1% to 1.5%

• 2% to 2.5%

• 0.5% to 1%

• 1.5% to 2%

What is a significant risk to the return forecasts discussed in the video?

• Increased government spending

• Trade and sentiment factors

• Multiple expansion

• High inflation rates

Which investment strategy is mentioned as having shifted in the last couple of months?

• Value into growth

• Leverage into momentum

• Momentum into value

• Growth into buybacks

What is the suggested approach within the risk asset bucket in the face of uncertainty?

• Avoiding global infrastructure

• Taking a defensive posture

• Focusing on short-term gains

• Investing in high-risk stocks

Which asset types are recommended for yield in uncertain times?

• Global infrastructure and real estate

• Cryptocurrencies

• Emerging market equities

• Commodities