The Fed Is Why a $1 Trillion Fund Firm Is Getting Less Bullish
- Northern Trust trims stock holdings in U.S., emerging markets
- Fed, growth slowdown cited as reason to turn more defensive
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For years, Jim McDonald has stuck to a bullish stance on financial assets, holding fast through market routs such as the one in February.
Now, amid a less severe sell-off that may well be over, the chief investment strategist at Northern Trust saw a catalyst to go defensive -- a more hawkish Federal Reserve. This month, the $1 trillion manager cut equity holdings in the U.S. and emerging markets, shifting the money to investment-grade bonds.