Northern Trust's McDonald on Markets & Longer-Term Strategy

The video discusses the past and future outlook of global equity returns, highlighting a shift from high returns to more moderate ones due to demographic growth and potential tax increases. It addresses the challenges in China's market, including regulatory risks and underperformance. The video outlines strategic market positioning, emphasizing developed markets and a cautious approach to emerging markets. It also identifies a trend towards tech independence, with US tech companies expected to gain market share.

What is the expected annual return for global equities over the next three to five years?

• 15%

• 16%

• 10%

• 5%

What is one of the main concerns affecting Chinese and emerging market equities?

• High inflation rates

• Decreasing population

• Government involvement in private companies

• Lack of technological advancement

What is the current stance on investing in emerging markets, including China?

• Overweight

• Underweight

• Avoid

• Neutral

Which region is particularly well-positioned to benefit from the cyclical upturn?

• Asia

• Europe

• South America

• Africa

What percentage of the US market cap is made up of technology, consumer discretionary, and communication services stocks?

• 30%

• 40%

• 50%

• 60%