Learn how Wells Fargo Asset Management is navigating the markets with highlights from their 2018 Midyear Investment Insights. Download the full report at http://on.wf.com/6126Dmlka.
Ann Miletti: I really think the investor wants their managers to understand that their money is important to them, that it’s part of their future.
Terry Goode: We’re going to be open and available to communicate our investment strategy and how we view the market.
Derrick Irwin: It’s very easy to think about these big, broad, long-term themes, but ultimately it comes down to execution and management teams.
Janet Rilling: And in this business, your results speak for you every single day, and to be able to do that on behalf of clients makes it a really gratifying industry.
Announcer: Our teams add nuance to seek value for investors, as they expand the hunt for growth, adjust to a longer recovery, and adapt to changing monetary policy.
Jon Baranko: The catalysts for growth are expanding, which we believe are creating more investment opportunities. And on the back of U.S. tax reform, we’re seeing forecasts that indicate a shift towards capital spending.
Ann Miletti: The significance of the shift is enormous. When companies shift and put money to work in the economy, it really helps the overall economy grow, which is good for the market as well.
Jon Baranko: China’s investment in infrastructure built cities and created wealth. And now the expansion of the middle class is driving technology and consumer spending.
Derrick Irwin: The Chinese consumer is probably one of the most exciting stories that we see anywhere. Now there’s a consumer that has a little money in his pocket, also has a smartphone in his pocket that allows any product to be delivered to his door. So that’s changed the whole consumer picture dramatically.
Brian Jacobsen: And it’s important to adjust to different economic cycles around the world; to think more globally for opportunity. Where a country is in its economic cycle can help influence market leadership. Not all cycles are the same. But we can adjust and follow the leadership.
Lyle Fitterer: There’s also the need to adapt to changing monetary policy around the world, especially when the Fed is more neutral and the Bank of Japan and the ECB are more accommodative.
Janet Rilling: So, in the U.S. we would focus on defensive industries. Technology is a good defensive place. Companies are providing services and products to help with efficiencies and productivity gains. Now, in Europe, where the economic cycle is a bit behind the U.S. and they’re in more of this expansionary phase, we’d look for the automotive industry, retail, and the banking sector.
Lyle Fitterer: A rising rate environment can challenge the muni market—but nuance can help solve for that.
Terry Goode: We are prepared for it by being diversified, having liquidity, and looking for opportunities at a good price for our investors.
Jon Baranko: It’s been a long bull market. We understand if investors feel that this is a tricky environment to navigate.
Brian Jacobsen: Don’t be afraid to re-think asset allocation and portfolio construction.
Lyle Fitterer: Our job, as professional managers, is to expand the universe we’re looking at, to adjust, and to adapt in order to help our investors as the market evolves.
Announcer: Let our insights help you navigate the markets. Download your copy at http://on.wf.com/6126Dmlka.