Yes A checkmark with a circle around it close Wells Fargo Advisors on Facebook Facebook symbol, links to WFA Facebook page Wells Fargo Advisors on Linkedin Linkedin symbol, links to WFA Linkedin page

Alternative Investments – In Depth

A deeper analysis of investment trends and topics across asset classes and global markets.

January 2, 2020

James W. Sweetman, Senior Global Alternative Investment Strategist

Yegin Chen, PhD, Senior Global Alternative Investment Strategist

Justin Lenarcic, CAIA, Global Alternative Investment Strategist

Xinxin Liu, CFA, FRM, Global Alternative Investment Strategist

Ryan McWalter, CAIA, Global Alternative Investment Strategist

Nick Sprague, CFA, Global Alternative Investment Strategist

Speedboats and Battleships

Key Insights

  • Many “risky assets” ended 2019 near or above all-time highs, but we continue to caution investors not to become complacent.
  • While the prospect of modest global economic growth in 2020 exists, we see risks in the credit cycle that bear careful monitoring.
  • Navigating the eventual downturn in the credit cycle will highlight strategies that provide maneuverability and the ability to effect change within a capital structure.
  • We continue to prefer Hedge Fund strategies that generate returns that are not predicated on market direction. Within Private Capital, we focus on niche strategies and international diversification, with a preference for managers that have demonstrated abilities to navigate through market cycles.