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Whenever there's market volatility, investors naturally become concerned about what they should do to help protect their portfolios.
Investment opportunities in artificial intelligence and genomics.
Navigating inflation and regulatory changes.
The fluid military situation and the new measures against Russia imply that the path for energy prices should remain the key for the economic and market outlook in the coming days and weeks.
The beginning of a new year is a great time to review and reflect on your goals for the business.
Capital gains, income tax rates, investment contribution limits, and more for 2022.
We believe the key factors in 2022 are earnings growth and the rate of change in both interest rates and inflation. These are generally the building blocks for equity valuation, hence our "Back to Basics" title. We believe earnings per share should be solid in 2022 with the Wells Fargo Investment Institute projecting nearly 10% year-over-year growth for the S&P 500.
Capital markets have reached a crossroads at the threshold of 2022. Despite a third straight year of strong stock market price gains, many investors now perceive a delicate balance between further asset price appreciation and a potential retreat from the risk-taking environment in place since the economy reopened in 2020.
We believe that crosscurrents in technological, economic, and political forces likely will change the contours of globalization but not end it. However, the familiar pattern of extended supply chains fragmented across multiple low-wage production centers appears to be evolving towards more concentrated, high-tech, and regional trade. We believe that globalization is evolving toward much broader and persistent opportunities in traded services and cutting edge technologies in the U.S. and parts of developing Asia.
October 4, 2021
What can we overreact to today? Guess we know the answer to that one. We entered the weekend with investors looking ahead to this week's Fed meeting and policy decision on Wednesday, plus a full slate of other central bank meetings. On Monday, markets called an audible and all we're talking about now is Evergrande. A lot of that talk has led to 2008 comparisons attempting to decipher whether we are on the verge of a Lehman event and global macro contagion. That got out of hand quickly, so let's take a moment to take a breath and give this a hard look.
Wells Fargo Advisors Financial Network did not assist in the preparation of this report, and its accuracy and completeness are not guaranteed. The opinions expressed in this report are those of the author(s) and are not necessarily those of Wells Fargo Advisors Financial Network or its affiliates. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy.
Over the past few weeks, numerous investors have asked us about various market risks and the possibility of a near-term correction — a fair question given that the S&P 500 Index bottomed on March 23, 2020, at a closing price of 2,237 and has essentially doubled since. In fact, based upon index closing levels, we have to go back to last October to find the most recent 5% correction. This is statistically unusual — going back to 1928, each calendar year has generated three to four such corrections.
January 11, 2021