Equities are an important component of a properly diversified portfolio. During times of financial stress, it is tempting to run away from equities because of the volatility and the psychological anxiety that may ensue.
If you want to understand how the US stock market behaves, it is best to start by looking at the US economy. One of the benefits of understanding the business cycle is to better align portfolios with financial goals.
Capital markets essentially provide a conduit for money to find its way into rewarding assets. For that to work properly, the market prefers relative stability and liquidity.
Important notice: You are leaving the Wells Fargo website
PLEASE NOTE: By clicking on this link, you will leave the Wells Fargo Advisors Web site and enter a privately owned web site created, operated and maintained by a third-party, which is not affiliated with Wells Fargo Advisors or its companies. The information and opinions found on this website have not been verified by our Firm, nor do we make any representations as to its accuracy and completeness. By linking to this Web site, Wells Fargo Advisors is not endorsing this third-party’s products and services, or its privacy and security policies, which may differ from Wells Fargo Advisors. We recommend that you review this third-party’s policies and terms and conditions to fully understand what information may be collected and maintained as a result of your visit to this website.