NEW YORK--(BUSINESS WIRE)--As the economic expansion and the second-longest bull market continue to evolve, Wells Fargo Investment Institute (WFII) today released the 2018 Outlook report ‘Moving Ahead in an Aging Recovery.’ The report notes that the global expansion is maturing but isn’t over yet, and that investors should be more selective in asset selection and incorporate active management strategies into portfolios.
“Investors should stay anchored in their goals, as investment return trends typically ebb and flow over an economic expansion,” said Darrell Cronk, President of Wells Fargo Investment Institute and Chief Investment Officer of Wells Fargo Wealth and Investment Management. “While investment return is a priority for investors, we are at a point in the cycle when it’s particularly important to seek ways to reduce unnecessary portfolio risks, which is best accomplished through a diverse portfolio. We believe the primary portfolio challenge for 2018 will be to assess risk and reward more diligently as investors look for late-cycle opportunities.”
Investors are invited to learn more about WFII’s 2018 Outlook by joining Paul Christopher, Head of Global Market Strategy for WFII, and other strategists for a conference call on December 7, 2017, at 4:00 p.m. ET. Participants should dial 1-855-723-6393 and enter conference ID 7574039.
Investors can also download the 2018 Outlook: ‘Moving Ahead in an Aging Recovery’ for an in-depth analysis of the 2018 economic and market forecasts, with emphasis on the global economy, equities, fixed income, real assets, alternative investments, portfolio implementation actions, and focus themes.
The report outlines five actions that may make a difference for investors’ portfolios:
- Stress-test strategies against historical events.
- Seek alpha (excess return over the benchmark) through active strategies.
- Stay flexible when assets are mispriced.
- Hold an appropriate level of cash alternatives.
- Keep your eyes on the goal.
The 2018 report also introduces and details four focus themes for investors:
- Balancing risk and reward: Examines risks investors are facing at this stage of the economic cycle, how emotions influence behavior during market fluctuations, and how diversification can help mitigate risks.
- Investing late in a bull market: Looks at how close we think we are to the end of this equity bull market, how asset classes perform late in the cycle, and how performance shifts when an equity bear market occurs.
- Tomorrow’s technology: Addresses how technology influences businesses and economic sectors, the impact robotics and automation will have on the labor force and productivity; and the role cybersecurity plays in the adoption of innovative technologies.
- The new approach to retirement: Answers how baby boomers are approaching retirement differently than past generations, how the next generation is planning for retirement, and steps investors should take to prepare for their own retirement.
View the digital presentation of the 2018 Outlook: ‘Moving Ahead in an Aging Recovery.’
Watch a video with WFII strategists on what the biggest investment story of 2017 was, and what investors should keep an eye on and what would be a big surprise in 2018.
About Wells Fargo Investment Institute
Wells Fargo Investment Institute (WFII) is a registered investment adviser and wholly-owned subsidiary of Wells Fargo & Company, providing investment research, strategy, manager research and thought leadership within the Wealth and Investment Management (WIM) division, with the goal of supplying world class advice to the company’s financial and wealth advisers. WFII provides investment advice to Wells Fargo Bank, N.A., Wells Fargo Advisors and other Wells Fargo affiliates.
WIM is one of the largest wealth managers in the U.S., with $1.9 trillion in client assets. WIM includes Wells Fargo Private Bank, serving high-net-worth individuals and families; Wells Fargo Advisors, the third-largest brokerage firm in the U.S.; Wells Fargo Retirement, which manages $330 billion in employer-sponsored retirement plan assets for 3.9 million Americans; and Abbot Downing, serving ultra-high-net-worth individuals and families. Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC, and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company.
About Wells Fargo & Company (Twitter @WellsFargo)
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, insurance, investments, mortgage, and consumer and commercial finance through more than 8,400 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 268,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.
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