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Movements in market volatility are causing investors to rethink and reposition their investment portfolios. Wells Fargo Investment Institute global investment strategist Veronica Willis joins Wealth host Brad Smith to discuss how this environment is prompting many to make adjustments.
"With this pullback that we've seen in equities (^GSPC, ^IXIC, ^DJI), it's a great opportunity for investors to have that chance to add to equities, again," Willis says. Investors with cash on the sidelines now have an opportunity to secure better valuations.
Regarding shifts across sectors, she highlights that financials (XLF) "has certainly done really well. We also like industrials (XLI) right now. We like energy and we like communication services (XLC).”
On the topic of inflation and tariffs, Willis discusses how these factors may impact the broader market:
“If that inflation remains a little bit more elevated, we're not likely to see the Fed [Federal Reserve] cut a ton of times this year. Our base case is that the Fed is going to be able to cut rates once more this year, but that risk that they may just be on pause for a little bit longer than we're expecting is rising."
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This post was written by Josh Lynch