Investors would be wise to tune out the “election noise” and any short-term market gyrations and focus on their long-term investment strategy, a new report by Wells Fargo Advisors says.
The report, “What’s at Stake for the Economy and Your Wallet: The Elections,” takes a look at what’s ahead for the nation in the areas of debt, taxes and investing.
Stuart Freeman, chief equity strategist for Wells Fargo Advisors, notes in the report that consumer and investor angst has been high as Americans have faced uncertainty surrounding taxes, the European recession, the fiscal cliff, slow growth in the U.S. and China, and the election. But while the markets are likely to remain volatile for the rest of the year because of these concerns, he said, these factors do not change Wells Fargo’s position that stocks should show “better return potential than fixed income over time.”
Freeman said Wells Fargo expects the S&P 500 index to hit 1,400 to 1,450 by year-end. “Should new Fed and European Union quantitative easing programs materialize, we believe the S&P 500 could move toward the top of the range prior to year-end,” he said.