Peter Donisanu is an Investment Strategy Analyst at Wells Fargo Investment Institute, and Dr. Brian Jacobsen is a Senior Investment Strategist on the Multi-Asset Solutions Team of Wells Fargo Asset Management.
Investors’ interest in outcome-oriented investing and strategies customized to their personal goals and values has surged in recent years. Environmental, social, and governance (ESG) investments have benefited from this trend. According to the Forum for Sustainable and Responsible Investment, rising interest in these strategies over the past decade has boosted ESG assets significantly—to $8.72 trillion by the start of 2016, representing a 33% increase over a two-year period.
How does an investor’s need to budget for risk relate to shopping for apples at the local grocery store? As it turns out, quite a bit.
Women in finance start out at parity with their male counterparts but make up just 19% of C-suite executive positions, according to the McKinsey & Company and LeanIn.Org’s 2017 Women in the Workplace Report. In fact, their data shows that women lose ground relative to male peers at every stage, with the biggest drop occurring early in tenure. In the first critical step to manager, women are 18% less likely to be promoted than their male peers.
Market conditions in 2017 were so calm that investors may have forgotten what it’s like to see stocks move markedly lower. So far, 2018 has been the year of rising volatility. Most long-term investors will correctly tell you that while the journey might be bumpy, what really matters is the destination: a little volatility doesn’t have to throw you off course when you’re pursuing your financial goals.
With the potential for continued market volatility, what can the early February equity market correction teach us as investors? Are there lessons beyond the wisdom offered during major volatility swings like stick to your long-term goals? We think so. As investors who actively search the market for opportunities in any macro environment, we see value in maintaining focus on two variables: an investable company’s fundamental strengths and its plans to deploy those strengths for consistent growth. In this blog post, we offer a quick post-mortem on the recent correction, and discuss a potential way forward for volatility-aware investors in search of opportunities.
On March 8, International Women’s Day is marked around the world each year as a call to action for accelerating gender parity. I’ll be celebrating breakthroughs, not barriers on this special day.
When people say yields are low, I always like to ask, “Which yields?” As we discussed in last week’s blog post, while yields are low—both in nominal and inflation adjusted terms—there is still decent income to be found. In my opinion, the trick is to look for income by casting a wider net: look across asset classes and geographies.
One of the most complex decisions people face today is financial planning for retirement. With the well-documented transition from state and company sponsored pension plans to individual IRA and 401(K) plans, much of the burden has shifted from financial professionals onto individuals. Recent research from Wells Fargo and Gallup shows that few investors understand the key steps needed to plan for and pursue the retirement they desire and deserve.