To Reveal True Balance Sheet Risk, Dig Deeper

The current U.S. economic expansion has hit the 10-year mark. As it continues to age, many equity investors could become increasingly uneasy about the amount of leverage in their portfolios.
Read More

Small-cap growth stocks: The cradle of tomorrow’s giants

Doug Basile, Portfolio Specialist with the Heritage Growth Equity team at Wells Fargo Asset Management, lends insight into what makes small-cap growth stock appealing now and over time.
Read More

An interesting retrospective on factors performance

Market cycles typically take years to play out for factor investing to fully be appreciated. But in 2018 we saw a full cycle which tells an interesting story about factor
Read More

Five New Year’s Resolutions For Markets

This blog post originally ran as a State of the Markets commentary by Darrell Cronk, CFA, President, Wells Fargo Investment Institute and Chief Investment Officer, Wealth and Investment Management 2019 begins
Read More

This blog post originally ran as a State of the Markets commentary by Darrell Cronk, CFA, President, Wells Fargo Investment Institute and Chief Investment Officer, Wealth and Investment Management

2019 begins with markets fixated on a myriad of key risks for this year. Through the holidays, I was asked many times: What would reinstate confidence and put the markets back on a steady path forward to continue this expansion cycle? I would propose five New Year’s resolutions that could certainly help.

October brought a significant drawdown across major U.S. equity indices. Fears over the potentially negative effects of tariffs and higher interest rates on global growth have been building for most of the year. We think the speed of interest rate increases (as opposed to their absolute levels) may have been the catalyst that spooked U.S. markets into correction territory, with technology bearing the brunt of the pullback. We are closely watching for additional risk-off signals. Credit spreads have widened, as is typically the case when volatility spikes. But, the fixed-income market isn’t showing signs of panic. The continued volatility in emerging markets bears watching. Against this mixed view of current market dynamics, we believe several factors support the case to sustain long-term U.S. growth equity allocations.