Wells Fargo says that it expects to see market uncertainty well into 2020 followed by a recession. In a new report focused on equity strategies during periods of market uncertainty, the financial services firm advocates for defensive asset protection and urges investors to look towards gold to balance their portfolios.
Paul Christopher, Global Market Strategy head at Wells Fargo said, “While we do not expect an imminent end to the current economic expansion, the economy is beginning to slow, and we foresee significant bouts of equity market volatility in the coming year,” said Christopher. “Eventually, an economic recession is likely, although probably not in the next 12 months. Recessions are a normal and expected part of economic and market cycles.”
Wells Fargo head of real asset strategy John LaForge added, “We favour a more proactive approach, taking control of the portfolio by thoughtfully and regularly considering where diverging valuation and price may create excessive risk… Market volatility is on the rise—and as history would suggest—investors are flocking to gold… Timing is key with gold. We do believe that gold has a place in a well-diversified portfolio most of the time.”
If you haven’t yet diversified your portfolio, now is the time to buy gold before volatility levels increase and send precious metals prices soaring.