Navegó a una página que no está disponible en español en este momento. Seleccione el enlace si desea ver otro contenido en español.

Página principal

Ten things investors should know today

Wells Fargo Investment Institute

Man running on a bridge

Here are 10 issues we think are important for investors to discuss with their investment professional as they chart a course for the months and years ahead.

  1. Asset allocation can help drive performance
    Asset-class performance can vary considerably, even within the same asset class. Because it’s so difficult to predict performance, we suggest “packing” portfolios with a strategic mix of investments, which may include commodities or alternative investments for qualified investors.  
  2. Reassess cash needs
    Cash can offer benefits in times of uncertainty. Amid volatile rallies above our target levels, we suggest realizing some of the gains and placing proceeds in cash to await a better entry point. One potential strategy for investing cash is dollar cost averaging, which will purchase more shares when prices are lower and fewer shares when prices are higher.
  3. Reevaluate risk and rebalance
    Rebalancing — taking profits and reallocating into assets that have underperformed — is an important component of an investment strategy. Regular rebalancing during an expansion may prevent riskier assets, like stocks, from drifting too far above the target allocation.  
  4. Volatility may remain elevated
    The uncertain impact of several factors could result in elevated volatility. Holding a diversified portfolio of assets should help mitigate downside risk, and we believe volatility can present opportunities.
  5. Saving regularly may help you reach your goals
    By starting early and saving regularly, you can make time your ally in helping you work toward your financial goals. Many employers offer matching retirement contributions to their employees — it’s free money, and it may make a significant difference in your retirement portfolio’s value.
  6. Most investors’ results fall short of the market
    Many investors simply lack the discipline to stick with a plan, and they often allow emotions and fear to affect their decision-making. Historically, one of the most common mistakes investors have made is selling during a market decline and not participating in the market’s rise. As a result, many investors have underperformed the market. We believe successful investing starts with having a plan calibrated to work toward specific goals.
  7. Maintain a global allocation with a U.S. bias
    As the recovery takes hold, we recommend a more U.S.-centric portfolio over developed international and emerging markets. Looking ahead, maintaining some exposure to international assets should help offset potential effects from a weaker dollar.
  8. Fixed income carries higher risk than in the past
    After 30 years of interest rate trends providing fixed-income investments with a strong tailwind, rates likely do not have much further to fall. Yet, many investors continue to purchase lower-credit-quality and longer-term fixed-income positions, locking in historically low income streams for significant time periods. As we proceed through the recovery, yield will be in demand.  
  9. Cost of health care in retirement may surprise you
    According to the 2018 U.S. Bureau of Labor Statistics’ Consumer Expenditure Survey, total health care expenses reached 13% of total expenses for people over age 65. There are many vehicles available to help save for health care costs, including maximizing contributions to IRAs and 401(k) or 403(b) plans or using additional tax-friendly tools, such as a Retiree Health Savings Plan or a Health Savings Account.
  10. Your retirement is your responsibility
    For most of us, long gone are the days when you retired and began receiving income from a traditional pension or defined benefit plan. The responsibility for funding retirement has made a dramatic shift from employers to employees over the past 40 years. You likely need an investment plan that defines your financial goals, how much you need to save for investing, and what mix of investments should help you work toward your goals.
Learn more about what investors should know Read the full report (PDF)