Update of investment strategy

Investment Strategy
Posted on June 2, 2025 | 10 min reading time
Weekly market insights and potential impacts on investors from the Wells Fargo Investment Institute Global Investment Strategy team.
Download the full report (PDF)
Real Assets Spotlight: Natural gas demand is rising
We believe that the convergence of several secular factors will contribute to an increase in natural gas demand in the coming years.
We see infrastructure as the missing ring to cover the projected growth in both natural gas supply and demand, underlining our favourable outlook on the Midstream Energy subsector.
Actions: The AI market moves from training to inference
We believe that recent releases of complex artificial intelligence (AI) reasoning models will require even higher levels of computing resources, particularly for inference workloads.
We expect China’s AI technical discoveries to lead to lower inference costs and a wider increase in global AI demand, with a shift in AI spending leaning more toward inference than training.
Fixed Income: Tax Exemption Muni non toccata nella fattura fiscale The recently passed House Tax and Expenditure Act puts in effect the tax exemption for communal obligations.
Although changes could be introduced in the Senate, we believe this initial version is good news for community bond investors.
Alternative: how to develop a diversified alternative distribution
We consider it prudent for qualified investors to consider a diversified alternative allocation to complete their public investments, given the variety of private equity strategies and hedge funds available.
In this way, we believe that investors should consider their investment objectives and diversify between and within classes of alternative activities.