Earlier this week Wells Fargo Advantage Funds Market Strategists breakfasted in New York City and concluded that there would not be a double dip recession due to “too much fiscal liquidity” in the market[1]. While the group admitted that there is currently “sub-par” growth in the market, they emphasized that “there is still growth.”

The group went on to say that investor sentiment in all areas of the market is ultimately catalyzed by movement into risky areas. For example, when stock market investors move away from commodities and into stocks and bonds, this is a sign of increased confidence because people are willing to take more risks. That confidence builds market stability, and can even help increase banks’ willingness to lend over time as investors become more active in all investing arenas.

Wells Fargo is particularly optimistic, with some members predicting that by late 2011 or early 2012 the United States will have returned to “historically average growth.” Do you see an increase in “risky” investments helping or hurting the real estate market? Does this type of investment trend make you more or less likely to invest yourself?

Thank you for reading! Your comments and questions are welcomed below.

[1] http://www.bankinvestmentconsultant.com/news/wells-fargo-double-dip-recession-2668082-1.html