Markets at Risk of Becoming Too Long-Term: State Street’s Lacaille

The video discusses the challenges of long-term market planning amidst short-term uncertainties, focusing on 2022 earnings forecasts and valuation concerns. It highlights the impact of the pandemic on markets, especially in emerging countries, and the potential for further lockdowns. The speaker outlines investment strategies, emphasizing a balanced asset allocation with a cautious approach to equities due to valuation concerns, while maintaining positions in investment-grade credit and hedging against extreme events.

What strategies are suggested for navigating bad news in the market?

What role do fiscal policies play in the investment strategy discussed?