Bloomberg Surveillance · Monday, August 31, 2026
Tracy McMillian of Wells Fargo's view on allocations has not changed, as she found Fed Chair Warsh's speech to be unoriginal, despite a more hawkish tone. Wells Fargo continues to favor stocks and commodities over bonds. McMillian explains that even with anticipated rate increases, spectacular corporate earnings and revenue growth are expected to drive stock prices higher.
“So our view really hasn't changed. We didn't feel like Chairman Warsh really said anything that was that new, although his tone was more hawkish and he was probably more informative than he's been in his previous communications.”
“But that did not change our view that we like stocks over bonds. And we prefer commodities as well as another favorable position in our allocations.”
“Well, we are still favoring stocks because even though we do anticipate a couple more rate increases, we don't think that that is going to be enough to overcome really the spectacular earnings and revenues that we've been seeing from companies, not just this past quarter, but the last quarter.”