PEAK - Wells Fargo unveils its recession stock portfolio

Wells Fargo says it is time to close out reopening trades and focus on the new landscape of a slowing economy. The rise in the 2-year Treasury yield (SHY) above 3% was the catalyst for a hard economic landing to become the base case, senior equity analyst Chris Harvey wrote in a note Tuesday. The team is moving to Neutral from Overweight in their High Covid Beta reopening portfolio, which rose 48% since its inception in October 2020, compared with an 11% rise in the S&P 500 (SP500) (SPY). The High Beta portfolio is -10% year to date, besting the 21% drop in the S&P. The economy faces a markets-driven recession, according to Harvey. "According to Fed data, at the end of 2021 nearly one quarter (24.3%) of US household assets were in equities," he said. "We viewed this as a major risk as a material, extended sell-off likely would

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Wells Fargo unveils its recession stock portfolio