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Municipal Bonds: Much Healthier Than Feared
Despite several states struggling to balance their budgets, muni bonds have performed well during this difficult economic environment. In the following white paper, Municipal Bonds: Much Healthier Than Feared, Jim McDonald, chief investment strategist at Northern Trust, outlines the three key drivers to municipal bond prices: low interest rate environment, historically low municipal default risk and favorable technical factors, including demographics and potentially higher taxes.

Is Now the Right Time to Harvest Gains?
Due to the market’s rapid recovery from its lows in early 2009, investors may have increased levels of unrealized capital gains in their portfolios. These capital gains combined with a potentially higher tax rate environment in 2011 and beyond make strategic tax planning – now more than ever – a critical element in maximizing an investor’s after-tax wealth. Read the Is Now the Right Time to Harvest Gains? white paper to learn more.

2Q10 Investment Manager Survey: Managers Less Optimistic on Growth as Euro Debt Concerns Persist
The second quarter 2010 Northern Trust Global Advisors manager survey revealed a moderation in managers' sentiment regarding global economic conditions. The majority of managers now expect global growth to remain the same or decelerate over the next six months, a strong shift compared to the first quarter where the majority expected global growth to accelerate over the next six months. Although growth expectations have moderated, managers still appear confident that the market has upside. In fact, in the second quarter an overwhelming majority of survey participants stated that they believe the U.S. equity market is undervalued, implying increased upside potential.

2010 Investment Strategy Outlook
In this investment strategy commentary, “2010 Outlook: What Central Bankers Give, They Can Take Away,” Northern Trust’s Chief Investment Strategist Jim McDonald and Investment Analyst Dan Phillips summarize their outlook for 2010, explaining what they expect will be the most important global economic and monetary trends and policymaking developments to consider as key economies continue recovering. They also discuss the potential investment implications for these events.

Long-Term Trends May Benefit Municipal Bonds
Municipal bonds appear positioned to potentially benefit from several favorable long-term trends: demographics (baby-boomer generation), higher taxes, more savings and less supply in the municipal bond market. In the Muni Bonds May Benefit From Favorable Long-Term Trends white paper Tim McGregor, director of municipal fixed income at Northern Trust, highlights why these trends may provide a positive long-term backdrop for the municipal bond market and why sound credit analysis is crucial in this asset class.

Optimistic Expectations for Corporate Earnings and Global Growth
The third quarter 2009 Northern Trust Global Advisors investment manager survey showed a significant majority of managers expressing optimistic expectations for corporate earnings and global growth. Fully 83% of managers expect corporate earnings to increase in the next quarter and 84% of managers expect global growth to accelerate in the next six months. In addition, 46% of managers still see room for market appreciation.

2009 Equity Market Trends: A Look at “Quality”
In the2009 Equity Market Trends: A Look at “Quality” commentary, John Skjervem, chief investment officer for Northern Trust’s personal financial services, and Matt Peron, director of equity research, look at performance trends between high-quality and low-quality company stocks. These trends may provide important insight into post-recessionary market dynamics.

Buyer's Market in Municipal Bonds
Reduced supply in the municipal bond market, demographic trends and the potential for higher federal tax rates have provided a positive backdrop for the municipal bond market. In the Buyer's Market in Municipal Bonds white paper, Tim McGregor, director of municipal fixed income at Northern Trust, discusses several reasons for our optimistic longer-term outlook for the municipal bond market.

California Municipal Bonds Update
Tim McGregor, director of municipal fixed income at Northern Trust, provides an update on the California municipal bonds market.

Making the Case for High-Yield Investing
The Making the Case for High-Yield Investing white paper discusses why high-yield bonds may help diversify portfolios and have the potential to generate relatively strong returns during an economic recovery. After recessionary periods, high-yield bonds have the potential for strong price appreciation as the economy begins to expand and corporate earnings improve. On a relative basis, high-yield bonds have generally outperformed high-quality bonds in periods of economic recovery.

Municipal Bond Investing: Taking Advantage of an Inefficient Municipal Market
Ongoing market stress and volatility have kept investors searching for effective ways to manage portfolio risk and maximize income while keeping an eye on potential tax exposure. This Municipal Bond Investing white paper examines how, now more than ever, actively managed municipal bond funds may offer benefits for your portfolio.

Emerging Markets: Analysis and Commentary on the Future of Emerging Markets
Despite higher volatility, the long-term investment case for emerging markets remains strong, given their diversification benefits, high growth potential and improving macro-economic fundamentals. In fact, in this Emerging Markets white paper Northern Trust financial experts highlight why they believe that when equity markets turn around, emerging markets may lead the global market recovery.