Wells Fargo Investment Institute: The Future of Globalization
Wells Fargo Investment Institute (WFII) has published a report titled “The Future of Globalization – Investing in an Interconnected World.” The report anticipates that the evolution of globalization will present new investment opportunities shaped by technological innovations and changing trade dynamics over the next decade. Key insights include a predicted shift to shorter supply chains focusing on high-tech regions, particularly Asia and the U.S., and a recommendation for investors to favor U.S. and emerging market investments. The report outlines potential risks and how geopolitical tensions may affect international allocations.
- The report highlights potential investment opportunities due to the evolution of trade dynamics.
- It recommends a larger exposure to the U.S. market and emerging markets such as China, India, and Southeast Asia.
- Geopolitical tensions and protectionist trade policies may impact international portfolio allocations.
New report analyzes the trends of investing in an interconnected world
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“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,” said
The report addresses key questions for investors to consider:
- How may globalization evolve and create opportunities for investors?
- Which economic and geopolitical forces may shape future globalization?
- How may technological innovation help drive these trends?
- What risks may impede globalization and which investments may benefit?
The report also outlines three international trends that can help investors as they prepare to reposition their portfolios over the next decade:
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Globalization favors the
U.S. and parts of developingAsia over other regions of the world - Certain sectors should benefit from expanding automation and services trade
- Centrifugal forces will remain, but investors have potential hedges
WFII strategists favor a larger exposure to the
Download the report “The Future of Globalization,” and read “The Big Rethink: Globalization in the Age of the Coronavirus” on
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Risk Disclosures
Global Investment Strategy (GIS) is a division of
The information in this report is for general information purposes only and is not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally.
The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor. This report is not intended to be a client-specific suitability or best interest analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon.
Risk considerations
Different investments offer different levels of potential return and market risk. The level of risk associated with a particular investment or asset class generally correlates with the level of return the investment or asset class might achieve. Stock markets, especially foreign markets, are volatile. Stock values may fluctuate in response to general economic and market conditions, the prospects of individual companies, and industry sectors. Foreign investing has additional risks including those associated with currency fluctuation, political and economic instability, and different accounting standards. These risks are heightened in emerging markets. These risks are heightened in emerging markets. Sector investing can be more volatile than investments that are broadly diversified over numerous sectors of the economy and will increase a portfolio’s vulnerability to any single economic, political, or regulatory development affecting the sector. This can result in greater price volatility.
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News Release Category: WF-ERS
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