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CNBC PRO Talks

Wells Fargo strategist Wren says market to stall on DC gridlock, but this strategy will still work

Overall equity returns this year could stall in the months ahead as investors temper their enthusiasm around the speed of economic reform promised by President Donald Trump, which is likely to take time, according to Scott Wren.

"I think the new administration will have very little to do with what happens in the economy in 2017. It's more of a 2018, 2019, 2020 story. And that's what we're trying to talk to our clients about," said the senior global equity strategist for Wells Fargo Investment Institute.

"Many of them, those at least that were enthused with the result of the election, keep thinking, '4 percent growth, 5 percent growth,' they keep hearing these big numbers. And we're telling them that that's not going to happen. This is going to be a modest growth, modest inflation year," he added.

Wells Fargo Investment Institute serves clients of the company's wealth and investment management division, which has $1.7 trillion in assets.

In this exclusive strategy session, Wren sits down with CNBC's Mike Santoli to explain how the firm is advising clients to beat subpar market returns and position themselves for growth this year.

Some of the topics covered include:

  • The market dynamics that could derail the rally.
  • Whether investors should look for growth overseas.
  • His favorite investment ideas for 2017.
  • The one mistake retail investors have made since 2009.

PRO subscribers can also read the entire transcript of the exclusive interview below.