"This global economic recovery is going to continue and we want to be able to take advantage of it," said Wren. Wells Fargo began advising investors to shift from intermediate-term fixed income investments to stocks of large-capitalized companies.
Wren said his firm has only taken "baby steps" in the past two to three weeks in advising clients towards a position in larger company equities but he anticipates "as we move through the rest of this year and early in 2012 we’re going to continue to recommend that."
Wren is expecting a "second leg up in this cyclical bull market" during that timeframe.
The stock market rise Friday afternoon “tells me the market is convinced we’re going to get something else" from the Federal Reserve , said Wren. He said the rally “definitely surprised” him after a string of disappointing data this week, that started with the fall in new home sales on Tueday and continued Friday with a downward revision to the GDP.
While Fed Chairman Ben Bernanke did not announce further quantitative easing during his speech at the annual Jackson Hole, Wyo. conference today, he did say the Fed stands ready to use "a range of tools" to help the U.S. economy. He also said the Federal Open Market Committee's September meeting "has been scheduled for two days instead of one to allow a fuller discussion."
Wren said that “the market is counting on something at the September FOMC meeting.”
In the same interview, Bill Stone, senior vice president and chief equity strategist at PNC Wealth Management, said Bernanke's comments "at least sends the signal that the door’s wide open."
CNBC Data Pages:
- Dow 30 Stocks—In Real Time
- Oil, Gold, Natural Gas Prices Now
- Where's the US Dollar Today?
- Track Treasury Prices Here
CNBC's Companies in the News:
Bank of America
Disclosure information was not available.