Saturday , January 22 2022

Do we believe him? Wells Fargo said now is the time to bet on the stock market



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The WFII team is not the only one who expects a refund in US numbers

Comment, investors: if you have got up cash, use it now. That's what Wells Fargo & Co says

The wave of sales that started in October is not the end of the bull market and investors should continue to resist the incentive to override to negative headings, Darrell Cronk, president of the Bank's Investment Institute (WFII), wrote to customers on Tuesday .

"We believe that this is the time to be prepared to increase the equity exposure in favorable areas, such as the high and medium-sized capacity companies of the United States and emerging market securities , and prefer to use money now or even increase jobs gradually, days and next weeks, "the strategists said, adding" that the current conditions have the potential to create some of the points best access in stock markets since the November 2016 elections. "

The collapse in US technology stocks, significant signs of stress in the corporate credit market and less optimism to a solution in the current Sino-US trade dispute has renewed sales last month in global stock addresses. S & P 500 fell short 10% lower than September on Tuesday before recovering slightly above the threshold.

The WFII team is not the only one who expects to repay in the US. The trustees of JPMorgan Chase & Co. Trust last week that the S & P 500 would improve what was lost in October. However, other companies such as Goldman Sachs Group Inc. were less optimistic and recommended that investors reduce risk and increase their cash positions in customer attention on Monday.

Wells Fargo would be concerned if S & P 500 had fallen below October and a quarter quarter, but the economic prospects of the United States remain firmly and the Federal Reserve will continue. n flexible, says strategists. In addition, the sharp decline in pricing multiples of technology stock suggests that the worst of the sales could end, they added.

"Concerns about slowing down global growth are pressing on the strong growth of the US and the confidence of investors," they said. "The poor line in our view is that an economic downturn is in the pipeline, although there are several areas of financial markets at the price of counting as if we were targeting one."

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