Wells Fargo Investment Institute Sees Opportunities in an Improving Global Economy
“We believe investors will see increased market volatility throughout the remainder of this year with markets ultimately generating positive returns, but investors may need to have patience and tolerate larger market swings than in recent years,” said Darrell Cronk, President, Wells Fargo Investment Institute. “To capitalize on investment opportunities in this economic recovery, we recommend that investors stay focused on the fundamentals, maintain a well-diversified portfolio and use market volatility to their advantage.”
The report covers the economy, equities, fixed income, real assets (including commodities, REITS and other real assets), and alternative investments. WFII strategists expect the Federal Reserve to take a cautious approach to tightening monetary policy with modest rate increases during the year’s second half.
“We believe that low but steady inflation, along with accelerating global economic growth will reinforce the positive trend in earnings and confidence. Our outlook continues to favor global equities over global bonds in the coming quarters,” said Paul Christopher, Head of International Strategy, WFII.
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