Volatility Spike, Stock Headwinds Create Alternative Fund Opportunity

Volatility is spiking and equities are hitting headwinds making this a good time to consider adding alternative mutual funds, said Brian Jacobsen, Chief Portfolio Strategist at Wells Fargo Funds Management. Jacobsen added that the Federal Reserve's decision to wind down its bond-buying program will increase volatility in stocks and force stock-pickers to prove themselves. Jacobsen lauded the recent popularity of unconstrained bond funds, saying fund managers need more independence in a low-yield environment as long as they don't take on too much risk. Finally, he said investors should benchmark their returns against inflation if there is no index to measure against.