‘Yes’ to commodities, ‘no’ to real estate as investors brace for the rest of 2020 – Wells Fargo – by Anna Golubova (Kitco News – June 23, 2020)


(Kitco News) When considering investment choices for the rest of 2020, look at commodities and not real estate, stated Wells Fargo’s 2020 Midyear Outlook Spotlight report.

The coronavirus crisis has turned the investment world upside down. And as economies begin to recover, Wells Fargo is making significant changes to its investment outlook — saying “yes” to commodities and “no” to real estate.

“As 2020 has unfolded, much has changed, and many investment strategies had to be retooled. In the real assets space, we made two important tactical tweaks. We downgraded real-estate investment trusts (REITs) to unfavorable, and we upgraded commodities to favorable,” said Wells Fargo head of real asset strategy John LaForge.

The reason why investing in real estate might not be a good idea is because of the difficulties many businesses, including retailers, might have paying for rent going forward.

“Impacts from the novel coronavirus have made many real estate sectors’ futures uncertain. From retailers struggling to pay rent to office space likely to shrink, the future for real estate does not look so rosy, even post-pandemic,” LaForge wrote on Monday.

For the rest of this article: https://www.kitco.com/news/2020-06-23/-Yes-to-commodities-no-to-real-estate-as-investors-brace-for-the-rest-of-2020-Wells-Fargo.html