Wells Fargo(US:WFC) Businesswire·2025-12-10 14:02Core Insights - Wells Fargo Investment Institute (WFII) anticipates that favorable economic and policy trends will create a variety of investment opportunities by 2026, despite ongoing uncertainties in policy and technology spending [1] Economic and Policy Trends - Business tax cuts for capital spending are expected to encourage business expansion and modernization, while lower borrowing costs and deregulation may enhance hiring, productivity, and earnings growth [2] - The report emphasizes the importance of focusing on fundamental signals such as policy tailwinds and technological transformation rather than daily market volatility [3] Investment Preferences - WFII favors U.S. large- and mid-cap equities, industrial and precious metals, and a full international equity allocation, while recommending intermediate maturities in investment-grade securities due to lower short-term rates [3] - The report suggests that lower interest rates and new tax advantages will bolster technology and artificial intelligence spending, advising investors to focus on valuations to avoid overextended stocks [3] Investment Ideas for 2026 - Key investment ideas include focusing on technology's potential, exploring digital assets, complementing U.S. equity with international opportunities, positioning for lower short-term rates, and utilizing alternatives and private assets [6] - The anticipated U.S. GDP growth for 2026 is projected at 2.4%, with consumer price inflation expected at 2.8% and the S&P 500 Index price target range set between 7,400 and 7,600 [6]