Luis Alvarado at Wells Fargo Investment Institute wants income investors to wake up. Not from their actual sleep. From their metaphorical market sleep. The kind of sleep where you collect dividends for thirty years and die solvent.
Kevin Warsh heads the Federal Reserve now. This means something. What it means depends entirely on whether Luis Alvarado still works at Wells Fargo Investment Institute when you read this sentence.
A new market regime arrived. Nobody sent a memo. Investors must accept reality. Reality being whatever helps Wells Fargo Investment Institute sell you a different basket of securities than the basket they sold you sixteen months ago.
The old regime loved bonds. Bonds paid nothing but at least you knew they'd pay nothing consistently. The new regime hates bonds. Or loves them. Depends which PowerPoint Luis is presenting.
Solid yields exist somewhere. Luis knows where. He'll tell you during the webinar. Bring questions. Bring capital. Bring that thing you call conviction but is actually just pattern recognition from watching too much financial television.
Income investors slept through the regime change. They bought municipal bonds in 2019 and checked their statements quarterly like responsible adults. Luis needs them awake. Awake investors trade more. Trading generates fees. Fees fund institutes.
Warsh changed everything by existing in a chair. The chair has power. The power flows through Warsh into interest rates into your portfolio into Luis Alvarado's quarterly talking points.
Wake up and accept the new regime. Or sleep through it and accept the old returns. Either way Wells Fargo Investment Institute will be here next year explaining why you need to wake up to the newer regime that replaced this new regime.
Photo by Precondo CA on Unsplash
Leave a Comment