[Music] Darrell Cronk, CFA, Chief Investment Officer of Wells Fargo Wealth and Investment Management, President of Wells Fargo Investment Institute: As we close the end of 2019 and enter 2020, the longest-ever bull market continues while market volatility and global uncertainties persist. Investors are rightly asking where
should they make adjustments to their portfolios. Wells Fargo Investment Institute’s 2020
Outlook suggests ways that may help mitigate risks and focus on long-term returns. [Music] Paul Christopher, CFA, Head of Global Market Strategy, Wells Fargo Investment Institute: Many investors may have headaches after our 2019 “end of easy” outlook theme rang
like a bell through the year. Investors’ relief was short after the 2018
recession scare, as they realized that the economic expansion is aging quickly.
Geopolitical tensions gave an object lesson on how NOT to make friends and influence markets. Brian Rehling, CFA, Co-Head of Global Fixed Income Strategy, Wells Fargo Investment Institute: The Federal Reserve’s pivot to dovish policy after declaring there was a long way to go
to get to the neutral rates. Also, meaningful yield curve inversion suggested that the risks of recession are rising. Sameer Samana, CFA, Senior Global Market Strategist,
Wells Fargo Investment Institute: Trade tensions with China, Brexit, and an
earnings slowdown were among the biggest stories in 2019. Tracie McMillion, CFA, Head of Global Asset Allocation Strategy, Wells Fargo Investment Institute: The big investment news in 2019 was the sharp turnaround from the market weakness of the 4th Quarter of 2018. Investors who stuck to their long-term allocations likely did very well in 2019 as both equity
and fixed income markets surprised to the upside. [Music] Paul Christopher, CFA, Head of Global Market Strategy, Wells Fargo Investment Institute: If world leaders don’t hang together better, they are likely to have recessions separately. Progress on geopolitical problems could extend the global economic expansion. Populism, global
migration, and separatism normally do create investment risks and opportunities. Brian Rehling, CFA, Co-Head of Global Fixed Income Strategy, Wells Fargo Investment Institute: We are looking at whether the Federal Reserve will need to continue easing and accelerate balance sheet expansion once again. Also,
is bond market yield curve inversion right again or can the U.S. buck the trend and avoid
a recession? Sameer Samana, CFA, Senior Global Market Strategist,
Wells Fargo Investment Institute: We believe U.S. elections, the strategic conflict
with China, and the degree of moderation in the U.S. global economic growth outlook will be the biggest drivers for markets in 2020. Tracie McMillion, CFA, Head of Global Asset Allocation Strategy, Wells Fargo Investment Institute: In 2020, investors should stay fully invested, but take targeted risk out of their portfolios.
The U.S. and other developed markets may avoid a recession in 2020. However, financial markets may only see modest upside as geopolitical risks linger and monetary policy approaches the end of its effectiveness. Darrell Cronk, CFA, Chief Investment Officer of Wells Fargo Wealth and Investment Management, President of Wells Fargo Investment Institute: 2020 will be a pivotal year for investors. Global growth is set to slow. Trade tensions
around the world could continue to escalate and Americans will head to the polls to choose
their leaders. I hope that you will follow us throughout the year as the Investment Institute
continues to produce actionable and real-time guidance on these and other critical topics.
Our team of dedicated strategists and analysts are focused on delivering the highest quality
investment expertise and advice in an effort to help investors manage risk and succeed