WEBVTT

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As we close the end of
2019 and enter 2020,

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the longest-ever bull market
continues while market

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volatility and global
uncertainties persist.

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Investors are rightly asking

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where should they make
adjustments to their portfolios?

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Wells Fargo Investment
Institute's 2020 Outlook

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suggests ways that may
help mitigate risks

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and focus on long-term returns.

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Many investors may have
headaches after our 2019 "end

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of easy" outlook theme rang
like a bell through the year.

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Investors' relief was short
after the 2018 recession scare,

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as they realized that
the economic expansion is

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aging quickly.

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Geopolitical tensions gave
an object lesson on how NOT

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to make friends and
influence markets.

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The Federal Reserve's
pivot to dovish policy

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after declaring there
was a long way to go

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to get to the neutral rates.

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Also, meaningful yield
curve inversion suggested

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that the risks of
recession are rising.

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Trade tensions with
China, Brexit,

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and an earnings slowdown were
among the biggest stories

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in 2019.

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The big investment news in
2019 was the sharp turnaround

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from the market weakness of
the fourth quarter of 2018.

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Investors who stuck to their
long-term allocations likely did

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very well in 2019 as both equity

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and fixed income markets
surprised to the upside.

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If world leaders don't hang
together better, they are likely

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to have recessions separately.

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Progress on geopolitical
problems could extend the global

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economic expansion.

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Populism, global migration,

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and separatism normally
do create investment risks

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and opportunities.

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We are looking at whether
the Federal Reserve will need

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to continue easing

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and accelerate balance
sheet expansion once again.

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Also, is bond market yield
curve inversion right again,

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or can the U.S. buck the
trend and avoid a recession?

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We believe U.S. elections, the
strategic conflict with China,

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and the degree of
moderation in the U.S.

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/global economic growth outlook
will be the biggest drivers

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for markets in 2020.

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In 2020, investors should
stay fully invested,

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but take targeted risk
out of their portfolios.

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The U.S. and other developed
markets may avoid a recession

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in 2020.

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However, financial markets
may only see modest upside

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as geopolitical risks linger

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and monetary policy approaches
the end of its effectiveness.

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2020 will be a pivotal
year for investors.

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Global growth is set to slow.

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Trade tensions around the world
could continue to escalate,

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and Americans will head to the
polls to choose their leaders.

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I hope that you will follow
us throughout the year

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as the Investment Institute
continues to produce actionable

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and real- time guidance on
these and other critical topics.

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Our team of dedicated
strategists

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and analysts are focused

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on delivering the highest
quality investment expertise

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and advice in an effort to
help investors manage risk

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and succeed financially.