Investors Should Reduce Risk Tolerance: Wells Fargo Investment Institute

The video discusses the potential for a recession, with Goldman Sachs predicting a 35% chance over the next two years. It highlights the Federal Reserve's role in managing rate increases and the impact of economic factors like inflation and supply chain issues. The discussion includes strategies for portfolio allocation, focusing on technology and healthcare sectors, and the effects of interest rates on market dynamics. The importance of the pace and endpoint of rate hikes is emphasized, considering historical contexts and current economic conditions.

In what ways should investors adjust their portfolio allocations in response to rising interest rates?

What are the potential risks associated with the Federal Reserve moving too rapidly in raising interest rates?