Market conditions can determine the choice of strategy

Source: Wells Fargo Investment Institute, as of March 31, 2022. IG = investment grade. DM = developed markets. EM = emerging markets. TIPS = Treasury Inflation-Protected Securities. Hedge Funds, Managed Futures, Real Estate, and Private Equity funds are not appropriate for all investors and are only open to “accredited” or “qualified” investors within the meaning of U.S. securities laws. Equity, fixed income, foreign, cash alternatives, and alternative investments are materially different investments with materially different risk and reward characteristics. These risk and reward characteristics should be evaluated carefully before making any investment decision.

1. For more information, please see our 2022 Outlook report, titled “Which way to the recovery?” (December 2021).

Key Takeaways

  • Certain asset classes can be appropriate under different circumstances or for different investment objectives.
  • Our research indicates that the top-performing asset classes when inflation is above average have been U.S. Mid Cap Equities and Commodities, represented by the Russell Midcap Index and Bloomberg Commodity Index, respectively.1