Northern Trust's McDonald on Global Markets, Inflation Concerns

The video discusses global supply chain disruptions, particularly in semiconductors, and their impact on inflation and market expectations. It explores asset allocation strategies, emphasizing equities and natural resources over fixed income due to unattractive nominal returns. The discussion shifts to international investment opportunities, highlighting Europe and Japan's potential in a global recovery. Finally, it addresses the implications of US infrastructure spending and the broader economic recovery.

What is the primary concern of US business owners regarding their costs?

• They believe costs will remain stable.

• They expect costs to drop significantly.

• They are uncertain about future price cycles.

• They are confident costs will decrease.

In a 60/40 portfolio, what is the current allocation to risk assets?

• 68%

• 60%

• 50%

• 32%

How does a weak US dollar impact international investing?

• It has no effect on international markets.

• It is positive for investing outside the US.

• It strengthens the US market position.

• It discourages investment in Asia.

Why might European and Japanese stocks perform better than US markets?

• They have no exposure to international markets.

• They are heavily reliant on technology.

• They have more exposure to cyclical recovery sectors.

• They are less exposed to global recovery.

What is the expected impact of US infrastructure spending on the global economy?

• It will have a minimal impact due to its size.

• It will significantly boost the global economy.

• It will only affect the US economy.

• It will lead to a decrease in global growth.