Northern Trust's Sturkenboom: Oil Rise is Small Negative

The video discusses the potential for $100 oil due to tight supply and OPEC's production decisions. It analyzes US 10-year yields, suggesting inflation expectations are too high and growth remains healthy. The flattening yield curve indicates recalibration to Fed policies, with tapering expected in 2022. Investment strategies focus on risk management, favoring value and cyclical sectors, and tapping into the COVID-19 recovery story.

What is a potential consequence of oil prices reaching $100?

• Demand may decrease due to growth impact

• Sustainable long-term growth

• Increased demand for oil

• OPEC will decrease production

What is the central tendency for the US 10-year yield according to the transcript?

• 2.00%

• 1.75%

• 1.50%

• 1.25%

What does the flattening of the 5-30 yield curve indicate?

• Decreased demand for duration

• A recalibration of market expectations

• Increased inflation expectations

• Immediate interest rate hikes

Which sectors are emphasized in the risk-on investment strategy?

• Value and cyclical sectors

• Technology and healthcare

• Consumer goods and services

• Real estate and utilities

What is the investment outlook related to the COVID-19 recovery story?

• Preference for short-term bonds

• Focus on technology stocks

• Emphasis on infrastructure and natural resources

• Avoidance of cyclical sectors