Wells Fargo Funding Institute: The Way forward for Globalization | 2021-09-21 | Press releases
New report analyzes investment trends in a connected world
The Wells Fargo Investment Institute (WFII) today released a new thematic report entitled “The Future of Globalization – Investing in a Connected World”. Over the next decade, WFII expects that innovative technologies will continue to create even greater global connectivity, but that new investment opportunities will arise as the composition of trade and its destinations changes. The report looks at the nature of globalization, the development of trade in consumer goods and services, increasing information and innovation, the demographic impact on trade, and new risks and secondary trends. The report also outlines how geopolitical tensions and protectionist trade policies will affect the mix between domestic and international portfolio allocations.
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“The familiar pattern of extensive supply chains fragmented across multiple low-wage manufacturing centers appears to be moving towards more concentrated, high-tech, regional trade,” said Paul Christopher, head of global market strategy at WFII. “We believe that reshaping world trade will offer wider and sustained opportunities for traded services and new technologies, but that supply chains will be shorter and focus on Asia and the US.”
The report addresses the key issues for investors to consider:
- How can globalization develop and create opportunities for investors?
- Which economic and geopolitical forces can shape future globalization?
- How can technological innovations drive these trends?
- Which risks can hinder globalization and which investments can benefit from it?
The report also outlines three international trends that can help investors prepare for repositioning their portfolios over the next decade:
- Globalization favors the US and parts of developing Asia over other regions of the world
- Certain industries should benefit from the expansion of automation and the trade in services
- Centrifugal forces persist, but investors have potential safeguards
WFII strategists prefer greater exposure to the US than international markets and an international exposure favoring emerging markets in China, India, and Southeast Asia.
Download The Future of Globalization report and read The Big Rethink: Globalization in the Age of the Coronavirus in Wells Fargo Stories.
Investment and insurance products are:
• Not insured by the FDIC or any federal agency
• No deposit or other obligation on the part of the bank or an affiliated bank
• Subject to investment risks, including possible losses on the amount of capital invested
Global Investment Strategy (GIS) is a division of the Wells Fargo Investment Institute, Inc. (WFII). WFII is a registered investment advisor and a wholly owned subsidiary of Wells Fargo Bank, NA, a subsidiary of Wells Fargo & Company.
The information in this report is for general informational purposes only and is not intended to predict or guarantee the future performance of any particular security, market sector or market in general.
The information contained herein constitutes general information and is not addressed to, intended for or individually tailored to any particular investor or potential investor. This report is not intended as a customer-specific suitability or best interest analysis or recommendation, as an offer to participate in any investment, or as a recommendation to buy, hold or sell any securities. Do not use this report as the sole basis for making investment decisions. Do not choose an asset class or product based on performance alone. Take into account all relevant information, including your existing portfolio, your investment goals, your risk tolerance, your liquidity needs and your investment time horizon.
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Via the Wells Fargo Investment Institute
Wells Fargo Investment Institute is a registered investment advisor and a wholly owned subsidiary of Wells Fargo Bank, NA, a subsidiary of Wells Fargo & Company, dedicated to providing superior advice to the company’s financial and asset advisors.
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