One of the great global managers maintains its commitment to Wall Street: what profits projects

Diversifying the investment portfolio is almost a world dogma, especially in modern finances for decades and almost always reappear the advice Diversifiers in moments of uncertainty or as in the case of the advent of a new republican administration in the hands of Donald Trump. Even, recently, CEO himself of the world’s largest background, Blackrock, Larry Fink advised to go thinking about putting some positions in European assets, far from Wall Street.

However, from one of the world’s greatest managers, the people of Northern Trust Asset Management (NTAM), that manages a portfolio of more than 1.6 billion dollars (something like three GDP of Argentina) considered, through its director of investments in global assets, Anwiti Bahuguna, which, which, which, which In the long term, the United States is the most important.

The NTAM executive, who has already landed at the Chicago headquarters and more than 135 years of history, spoke with Barbara Kollmeyer of Marketwatch about Marketwatch Why Wall Street actions are the best commitment to the next decade and that shares are the US secret sauce.

Wall Street: What profits does NTAM project for the next 10 years?

It is worth noting that market forecasts For the next 10 years of NTAM they include an upward forecast that US actions will render 7.5% per year (including a prediction of a 2.6%dividend yield). This figure is higher than that of other companies such as Vanguard, for example, which provides that US shares will rendering 3.8% average and arrives after a decade in which the S&P 500 has had an average yield of 13.5% Annual, according to FACTSET.

In his bayuguna defense he said that “It is difficult to see any other stock component worldwide surpassing the American, in terms of strength of the capital markets that we have here, in terms of ability to manage their balances and margins, why would that change that?” The greatest reason to bet on US actions is shares, where the country dominates, says Bahuguna.

Goldman Sachs has predicted a record of 1.16 billion dollars in the S&P 500. Only this year, companies could represent an important support for shares. She says investors They will not get from China or India, And although European companies offer some repurchases, they will take decades so that these countries are updated with what US corporations are doing.

Wall Street: small capitalization companies or large capitalization

Bahuguna states that the company Prefers small capitalization companies to large long -term capitalization, citing the favorable effects of lower interest rates in smaller companies that tend to have more debt. These actions also have a better performance when economic foundations are solid, such as now, and are more linked to economic cycles. “As the economy begins to recover and expand, small capitalization actions tend to be the ones that recover the most ”, The NTAM expert said. In addition, global relocation is underway and many large multinationals are moving supply chains to national suppliers, which will probably benefit smaller companies, he added.

What she worries is the strong concentration of large technology companies In US markets, but he says they have real profits, unlike those of the boom and fall of the Puntocom. “The message to our customers is that they have quality and diverse portfolios,” he said. They also foresee an annualized yield of 6.6% for infrastructure that trades in the stock market worldwide, such as public service companies, and a yield of 8.4% for private credit and 10.1% for private capital .

Northern Trust has established three Crucial topics that investors must adopt during the next decade: productivity enabled by artificial intelligence (AI) to improve growth, especially in the US; navigation by the energy transition; and a new realignment of globalization, which is “crooked, but not broken.”

“At least this year, there will be a lot of noise around policy changes,” He said, “that’s why I think our approach has been to invest in a wide range of companies that have solid balances, a really good profit potential and low volatility.”