A large part of our time is spent reading economic and market insights and educational content from many different sources. It's our intention to regularly share interesting articles, books and insightful reports in our easy to access Resource Center. Find out what we're reading about today.
December 26, 2018
Dramatic shifts in sentiment about economic growth drove a return to volatility in 2018, after two mostly quiet years in 2016 and 2017. For 2019, we see potential opportunities - but also would take three steps - looking for investments where potential reward exceeds potential risk; rebalancing regularly, especially after gains; and allocating cash, instead of accumulating it.
December 10, 2018
During the past decade, many asset price trends have persisted with limited interruption. Unusually, equity and bond prices rose together, U.S. market performance dominated international markets, and only a few equity sectors led prolonged periods of outperformance. These trends made it relatively easy for investors to position portfolios. We see a number of these long-term trends shifting, marking what we call the end of easy.
November 28, 2018
Aretha Franklin and Prince were undoubtedly brilliant performers, but they made giant estate planning mistakes that you’ll want to avoid. Franklin, who was divorced, reportedly died without a will or a trust despite having four grown children, one of whom has special needs. Prince, too, died without a will.
November 20, 2018
Meaningful increases in longer-term rates occurred in 2013 and late 2016. Beginning in late 2015, the Federal Reserve (Fed) started increasing the fed funds target rate. Since then investors have seen a meaningful increase in short-term interest rates. The purpose of this report is to help investors anticipate risks to their portfolios as interest rates (short-term or long-term) rise.
September 13, 2018
After market close on September 28, S&P will change its sector lineup. Scott Wren, Senior Global Equity Strategist with Wells Fargo Investment Institute, explains what companies will be moving into the new Communication Services sector- and what investors need to know about the upcoming changes.
July 12, 2018
Risk assets pared recent gains following the U.S. Trade Representative’s (USTR) announced list of tariffs on an additional $200 billion worth of Chinese imports. This latest announcement has increased our likelihood of potential for escalation. While the risks have increased, we do not believe that we are in the midst of a trade war yet.
June 20, 2018
The current economic expansion is nine years old and is the second longest since modern records began in 1945. It seems the further the expansion and the related equity bull market run, the more pointed the question, How much longer can they go?
February 14, 2018
Now may be a good time for investors to revisit their fixed-income strategy. Investors with allocations in cash and cash alternatives could see returns for risk-free assets slowly move higher. Retirees and fixed-income investors may be able to take less risk to generate income from their portfolios. We expect longer-term interest rates to move modestly higher, hence we recommend investors use caution regarding exposure to securities with long-term maturities.
February 5, 2018 Market Sell-off: What Investors Need to Know Now. A swift climb in the 10-year Treasury yield and a strong employment report contributed to Friday’s equity market pullback. Solid fundamentals have been driving the rally, but volatility risks are rising.
February 1, 2018
Since the Great Recession, the global economy has been in a low-interest-rate, low-return environment often characterized by deflationary risks. But the economic climate is starting to change. Judging by economic data and statement from the Federal Reserve (Fed), inflation in the U.S. has been slowly returning to its 2-percent target rate. Moreover, health levels of U.S. employment, coupled with rising wages, have boosted consumer confidence.
December 31, 2017
For much of 2017, positive feedback between the global economy and risk markets has boosted equity and fixed-income credit prices, improved capital flows and sentiment, and facilitated easier financial conditions—which, in turn, boosts risk asset prices. This positive feedback loop was strong for 2017 and should remain in place until we see negative forces from higher input prices or borrowing costs begin to temper growth.