SAN FRANCISCO – (BUSINESS WIRE) – The Wells Fargo Investment Institute (WFII) today released its “2021 Midyear Outlook: Fuel for Growth” calling for and expected to accelerate the recovery of the US economy from 2021-2022 thanks to the COVID-19 vaccines, that the private savings accumulated last year will be spent faster, historically low interest rates and the prospect of several government subsidy programs. The report highlights possible concerns about rising inflation rates, tax rates and interest rates. Still, the WFII believes that these issues are unlikely to negate the economic recovery or the opportunities outlined in the report at this early stage of the recovery.
“There is a powerful macro mosaic of a steadily weakening US dollar, soaring commodity prices, strong global equity returns, low interest rates, a robust fiscal stimulus, and falling equity and bond volatility,” said Darrell Cronk, president of WFII and chief investment officer of Wells Fargo Wealth & Investment Management. “Strong market trends can also lead to large market divergences, allowing for diversification and a disciplined plan for allocating valuable allies in cash.”
The report provides insights into the global economy, stocks, fixed income, real assets and alternative investments. The WFII expects the US to lead a global economic boom that will push world economic growth to a 48-year high this year before moving to a still strong but more sustainable pace over the next year. The WFII predicts that inflation in the US and around the world will follow economic growth to beat its pre-pandemic pace this year and next. The report believes this vigorous economic recovery could support record corporate earnings in 2021 and 2022 and propel stock prices to new all-time highs. The target range of the S&P 500 Index is 4,400-4,600 for the end of 2021 and 4,800-5,000 for the end of 2022.
The report highlights five post-pandemic portfolio ideas for investors to consider:
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Consider using cash selectively
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Cyclical sectors and asset classes for review
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Fixed Income Strategies
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Commodity prices on an upward trend
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Equity and alternative investment strategies
Download 2021 Midyear Outlook: Fuel for Growth and watch a Wells Fargo Stories video.
Register for the WFII 2021 Midyear Outlook Investor Webcast on Thursday, June 17 at 4:15 p.m. Eastern Time.
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Investment and insurance products are: |
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• Not insured by the FDIC or any federal agency |
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• No deposit or other obligation on the part of the bank or an affiliated bank |
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• Subject to investment risks, including possible losses on the amount of capital invested |
Risk warnings
Forecasts are based on certain assumptions and views about market and economic conditions, which are subject to change.
Different investments offer different potential return and market risks. The level of risk associated with a particular asset or asset class generally correlates with the return that the asset or asset class could generate. Stock markets, especially foreign markets, are volatile. Stock values can fluctuate in response to general economic and market conditions, the prospects of individual companies and industries. Bonds are subject to market, interest rate, price, credit / default, liquidity, inflation and other risks. As a rule, prices are inversely influenced by changes in interest rates. The commodity markets are considered speculative, harbor considerable risks and have experienced periods of extreme volatility. Investing in a volatile and uncertain commodities market can cause the value of a portfolio to rise or fall rapidly, which can lead to greater volatility in stock prices.
Alternative investments such as hedge funds, private equity / private debt and private real estate funds are speculative and involve a high level of risk that is only suitable for investors who have the financial competence and expertise to understand the benefits and risks of investing in a fund and for which the fund is not a complete investment program. They involve significant risks, including losses due to leverage or other speculative investment practices, lack of liquidity, volatility in returns, restrictions on the transfer of units in a fund, potential lack of diversification, lack of and / or delayed information on valuations and prices, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds. Hedge fund, private equity, private debt and private real estate fund investments involve other material risks, including loss of capital and loss of the entire amount invested. A Fund’s offering documents should be carefully reviewed prior to investing.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company with assets of approximately $ 1.9 trillion and proudly serves one in three US households and more than 10% of all medium-sized and small businesses in the US banking, Investment and mortgage products and services, and consumer and commercial finance, through our four reportable business segments: Consumer Banks and Loans, Commercial Banks, Corporate and Investment Banks, and Wealth and Investment Management. Wells Fargo was ranked 30th in the Fortune 2020 ranking of America’s largest companies. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by making housing affordable, small business growth that supports financial health and a low carbon economy. Wells Fargo news, insights and perspectives are also available on Wells Fargo Stories.
For more information, please visit www.wellsfargo.com | Twitter: @WellsFargo.
Via the Wells Fargo Investment Institute
Wells Fargo Investment Institute is a registered investment advisor and a wholly owned subsidiary of Wells Fargo Bank, NA, a subsidiary of Wells Fargo & Company, dedicated to providing superior advice to the company’s financial and asset advisors.
Press release category: WF-ERS
source https://dailyhealthynews.ca/wells-fargo-investment-institute-releases-2021-midyear-outlook-fuel-for-growth/
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