Wells Fargo Investment Institute Releases Midyear Outlook “Eyes Forward: Opportunities and Obstacles”

Outlook suggests the S&P 500 will close around 2,850 at the end of
2019


SAN FRANCISCO–(BUSINESS WIRE)–Wells
Fargo Investment Institute
(WFII) today released its “2019
Midyear Outlook Eyes Forward: Opportunities and Challenges
.” The
report makes the case that the current 10-year economic expansion is not
over and that all avenues for investors to consider will require careful
assessment.

“The theme we adopted at the beginning of 2019, ‘the end of easy,’ still
resonates,” said Darrell
Cronk
, president of WFII and chief investment officer of Wealth and
Investment Management at Wells Fargo. “The first half of 2019 has
delivered exceptionally strong capital market returns across most major
asset classes. However, there are risks for investors to keep an eye on
such as a meaningful yield-curve inversion, continued volatility in
equity markets, and heightened geopolitical tensions.”

Paul
Christopher
, head of global market strategy for WFII, said, “Since
early 2018, investor concerns have focused mostly on political
uncertainties, and we view these as the main economic risk. Whether we
are looking at Brexit or drawn-out trade negotiations, these
geopolitical elements can deepen pressure on business confidence here in
the U.S.”

To help investors maintain a forward focus, “they should consider
rebalancing their portfolios to increase diversification and exposure
toward areas of economic growth and where valuations remain attractive,”
added Christopher.

The report outlines five strategies for investors to consider in the
second half of 2019:

  1. Rebalance when volatility strikes.
  2. Potentially reduce price volatility with income-generating assets.
  3. Use cash to your advantage.
  4. Consider greater exposure to emerging market equities and sectors with
    higher-quality earnings.
  5. Add strategies that can benefit from various market conditions.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based
financial services company with $1.9 trillion in assets. Wells Fargo’s
vision is to satisfy our customers’ financial needs and help them
succeed financially. Founded in 1852 and headquartered in San Francisco,
Wells Fargo provides banking, investment and mortgage products and
services, as well as consumer and commercial finance, through 7,700
locations, more than 13,000 ATMs, the internet (wellsfargo.com) and
mobile banking, and has offices in 33 countries and territories to
support customers who conduct business in the global economy. With
approximately 262,000 team members, Wells Fargo serves one in three
households in the United States. Wells Fargo & Company was ranked No. 29
on Fortune’s 2019 rankings of America’s largest corporations. News,
insights and perspectives from Wells Fargo are also available at Wells
Fargo Stories
.

About Wells Fargo Investment Institute

Wells
Fargo Investment Institute
 (WFII) is a registered investment adviser
and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate
of Wells Fargo & Company, providing investment research, strategy,
manager research and thought leadership within the Wealth and Investment
Management division (WIM), with the goal of supplying world class advice
to the company’s financial and wealth advisers.

General Disclosures

Estimates and forecasts are not guaranteed and are subject to change.

Equity securities are subject to market risk which means their value may
fluctuate in response to general economic and market conditions and the
perception of individual issuers. Investments in equity securities are
generally more volatile than other types of securities.

Rebalancing cannot eliminate the risk of fluctuating prices and
uncertain returns.

Investing in foreign securities presents certain risks not associated
with domestic investments, such as currency fluctuation, political and
economic instability, and different accounting standards. This may
result in greater share price volatility. These risks are heightened in
emerging markets.

The information in this report was prepared by Global Investment
Strategy. Opinions represent GIS’ opinion as of the date of this report
and are for general information purposes only and are not intended to
predict or guarantee the future performance of any individual security,
market sector or the markets generally. GIS does not undertake to advise
you of any change in its opinions or the information contained in this
report. Wells Fargo & Company affiliates may issue reports or have
opinions that are inconsistent with, and reach different conclusions
from, this report.

The information contained herein constitutes general information and is
not directed to, designed for, or individually tailored to, any
particular investor or potential investor. This report is not intended
to be a client-specific suitability analysis or recommendation, an offer
to participate in any investment, or a recommendation to buy, hold or
sell securities. Do not use this report as the sole basis for investment
decisions. Do not select an asset class or investment product based on
performance alone. Consider all relevant information, including your
existing portfolio, investment objectives, risk tolerance, liquidity
needs and investment time horizon.

The Consumer Price Index (CPI) produces monthly data on changes
in the prices paid by urban consumers for a representative basket of
goods and services.

S&P 500 Index is a market capitalization-weighted index composed of 500
widely held common stocks that is generally considered representative of
the U.S. stock market.

Contacts

Media
Kelly Reilly, 314-797-9701
[email protected]

Allison Chin-Leong, 212-214-6674
[email protected]

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