economy
Wells Fargo says investors need to prioritize income. Where it sees opportunity
Here's how Wells Fargo would build a "resilient, multi-asset class income stream."
TL;DR
- Investors should prioritize income due to higher-for-longer interest rates and potential inflation pickup.
- A diversified income strategy includes dividend stocks in sectors like financials, industrials, and utilities.
- Within fixed income, Wells Fargo prefers intermediate-term bonds (3-7 years) and high-quality corporate bonds.
- Other favored areas include mortgage-backed securities, asset-backed securities, and tax-efficient municipal bonds.
- Consider emerging market bonds for higher yields and some exposure to high-yield bonds for diversification.