Wells Fargo Investment Institute Favors US Stocks Over Internationals

Heading into 2023, investors around the world are beginning to see the potential in US stocks over internationals. Wells Fargo Investment Institute, the leading research and Investment strategy firm, has released a report that explains the potential risks and rewards of investing in US stocks over internationals.

Scott Wren, senior global market strategist at the Wells Fargo Investment Institute, believes that the cost savings that US stocks offer outweigh any potential risk that comes with investing in internationals. He wrote in a note to clients Wednesday, “We expect the markets to continue this trend until investors receive more signals that it’s safe to diversify their portfolios into international markets.”

Azhar Iqbal, the head of global market strategy for Wells Fargo Investment Institute, believes that the cooling inflation that is currently observed in the markets isn’t likely to be sustainable. He wrote, “What happens if your Investment are down just as you’re heading into retirement? It’s important to diversify your portfolio to avoid such scenarios.”

BlackRock Investment Institute has reported that while a recession is unlikely, investors should still be wary of the potential risks associated with investing in international markets. “You well could ask, why did they get into this problem?” said Iqbal. “Diversification among asset groups that do not necessarily move in the same direction can help reduce the overall risk of your portfolio.”

For those investors who are willing to take the risk, the rewards that come with investing in US stocks can be quite substantial. The Wells Fargo Investment Institute has reported that the rate of return is so good that the cost savings is well worth the risk that comes with investing in US stocks.

It’s important to note that no Investment is guaranteed, and investors should always do their research before investing. The Wells Fargo Investment Institute recommends that investors look into the long-term performance of the stocks they are interested in and consult with a financial advisor to determine if the risk is worth the reward.