Q&A: Why to Focus on Factor-Based Investing

based factor investing focus northern
Middle East
  • Date: 01-Jul-2021
  • Source: Yahoo News
  • Sector: Economy
  • Country: Middle East
  • Who else needs to know?

Q&A: Why to Focus on Factor-Based Investing

Ask the stock market how the economy is doing, and it'll tell you: Just great, thanks.

Judging by the equity markets, the COVID-19 pandemic is securely in the rearview mirror and has been since the vaccine announcement in November 2020. But all may not be as rosy as it seems.

Analysts at Northern Trust FlexShares Exchange Traded Funds warn investors against becoming too complacent. Macroeconomic events, such as unprecedented fiscal stimulus and the huge expansion of central bank balance sheets, could lead to inflation and rising interest rates. Both pose risks to unprepared investors. The question, then, is how to prepare for those risks.

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