The world is racing toward universal connectivity. By 2020, the number of global internet users is projected to reach 4.1 billion, up 1.1 billion (37%) from 2015, and global Internet Protocol networks are expected to support 26.3 billion devices and connections by then—10 billion (61%) more than in 2015, according to Cisco Systems, Inc. With the soaring demand, five innovative areas have experienced tremendous growth that hasn’t yet shown signs of slowing. We refer to these five areas as SCODI.
- The recent short-term trend whereby stock prices have not initially responded as favorably to earnings surprises is likely temporary. If a company’s share price doesn’t react to a positive earnings surprise and good guidance, that could be an indication that the stock is underappreciated and undervalued.
With contributions from Gabriel G. Diederich, CFA, Portfolio Manager; Brandon Pae, Senior Analyst, Municipal Credit Research; and Gilbert L. Southwell III, Senior Analyst, Municipal Credit Research
The U.S. Supreme Court ruled on June 21, 2018, that states may require online retailers to collect sales taxes.
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.
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.
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.