Factor-Based Investing: Navigating the Pitfalls

Interest rates and credit spreads have increased this year, but we expect those trends to reverse over the next year. Additionally, we think concerns about accelerating inflation are overblown. Jim McDonald explains.

Many investors are concerned about recent volatility, but it’s really a return to the norm. However, there are two events we think may cause more volatility in the markets.

•Can the Fed be wrong?
•Trade war

Every advisor wants to avoid tough conversations with clients about faltering portfolios. Michael Hunstad explains how using factors may help.

• Getting paid for the risk you take
• Factors tend to deliver consistent excess returns
• Factors can be used as “levers” to achieve desired outcome

With the 10-year Treasury reaching 3% it’s understandable why advisors and clients are concerned about rates going forward. Here’s our take.
•Intermediate – short-term part of the yield curve
•High quality credit
•Purpose of bonds in portfolio

Despite the Federal Reserve rate hike, and an indication of more hikes yet to come, the 10-year Treasury yield actually declined. CIO Bob Browne explains what this means for investors and the economy.

We recommended a shift in asset allocation toward U.S. assets this month. Jim McDonald explains what this could mean for investors.

Volatility has returned in markets across the world. In this quarter's call, our top quantitative experts discuss how factors have behaved as a result of volatility in the last quarter.

With the U.S. 10-year Treasury yield decisively breaking 3% this past week, and the Fed likely to hike again in June, CIO Bob Browne revisits our view on rate hikes and bond yields.

We expect growth to moderate over the next year, along with inflation anxieties. Jim McDonald explains what this could mean for investors.

While the Fed is likely to raise rates in June, we think it could be a mistake. Colin Robertson, explains.

Despite some softening in recent economic reports and increased trade tensions, financial market indicators aren’t flashing warning signs.

With U.S. mid-term elections only seven months away, Investors should be paying attention, and not underestimate the potential consequences.

The recent surge in volatility has investors asking what it means for future returns. We researched this question and came up with some interesting insights.

The behavioral science video, Selective Attention Test, provides a sound metaphor for today’s markets.

While we remain positive on the outlook for growth and inflation, we have pared back our recommended U.S. equity allocation in the wake of a worsened regulatory environment.

With Treasury yields rising steadily this year, is this so called "risk free" asset truly without risk? Bob Browne explains.

Our most recent insights into equity factors around current market events and trends. Find out how timely market events have been affecting equity valuations and returns from the industry experts.

Get Smarter in 60 Seconds - Watch as Northern Trust Asset Management tackles three of the biggest myths surrounding performance, use, and acceptance of environmental, social and governance (ESG) investing.

Over recent years we have seen interest in sustainability and demand for sustainable investment solutions grow – this is set to continue in 2018, but what is driving the growth. Join Julia Kochetygova and Emily Lawrence as they discuss the big themes behind the interest and take a look at how these translate in to investment trends and opportunities.

In this webinar we will discuss:
-Climate change
-Resource scarcity
-Population dynamics