December 2021 2022 Outlook

1 Investment and Insurance Products: NOT FDIC Insured NO Bank Guarantee MAY Lose Value2022 Outlook Which way to the recovery? December 20212 | 2022 Outlook Please see pages 25&27 for important definitions and risk markets have reached a crossroads at the threshold of 2022. Despite a third straight year of strong stock market price gains, many investors now perceive a delicate balance between further asset price appreciation and a potential retreat from the risk-taking environment in place since the economy reopened in 2020. Investing inherently invites questions about future uncertainties a wall of worry, as it s called.

2 At the dawn of the new year, various questions meet at a crossroads questions about the economy's strength amid new COVID-19 variants, doubts that inflation will ease, uncertainty about Federal Reserve policy, unprecedented supply-chain distortions, rising energy prices, and conjecture about whether to add or remove risk exposure to portfolios. All these questions have some bearing on which road the recovery takes investors, the crossroads typically comes with the which way should I go? question and conflicting emotions. That tug is why consultants from driving instructors to life coaches typically counsel starting with a fundamental guiding principle.

3 Our starting counsel for investors would be to divide the noise from the important information in the words of farmers since time immemorial, to separate the indelible chaff from the usable grain. So let s separate economy is performing well in many ways. Jobs have been plentiful, companies have been strongly profitable, businesses have reopened or new ones have been launched, and consumer savings and incomes have expanded considerably. However, we expect growth to slow next year, as the booming growth profile of the past 18 months transitions into a slower but more sustainable trajectory in 2022.

4 Inflation should remain above its long-term average but should slowly ease if supply shortages normalize as we expect. Liquidity abounds, coupled with solid profit growth and an emerging capital spending cycle that should support higher equity and commodity prices and a gradual move higher in bond yields. As early-cycle dynamics evolve into mid-cycle drivers, we can turn to what history has taught us that we can expect volatility to decline, confidence to rise, monetary and fiscal policy to transition from an easier to tighter path, and money to flow into risk assets.

5 We believe this describes well our conditions as we step into the new investments float on the tides of historical precedent, and their course is influenced by the winds of economics, politics, and human nature. In a chyron culture a world of shifting news cycles where dire predictions and unbridled emotional responses can daze and confuse we believe wise insights drawn from the study of history and an understanding of fundamental economic principles can offer investors the perspective they need as they stand at a crossroads. It is not the crossroads itself that matters, but rather the decision of how to respond that equates to the greatest success or the mixed emotions that naturally accompany these transitions, our 2022 Outlook offers a clear direction on what we see next for the recovery and the strategies we favor in capital markets for the coming year.

6 On behalf of my Wells Fargo Investment Institute colleagues, I want to thank you for the trust you extend to us as our clients. We look forward to walking this recovery road past the crossroads with you in 2022 and L. Cronk, CFA President, Wells Fargo Investment InstituteChief Investment Officer, Wealth and Investment ManagementWhich way to the recovery? December 2021 I ve lived through some terrible things in my life, some of which have actually happened. Mark Twain2022 Outlook | 3 Please see pages 25&27 for important definitions and risk and market forecasts.

7 Page 4 Global economy ..page 6 2022 economic growth of , a still-elevated inflation rate, and fourth-quarter unemployment down to favor risk assets, such as equities, in our view. International economic growth and monetary policy differentials should favor the dollar over the euro and the yen. A firmer dollar also should keep pressure on emerging market fixed income ..page 9 A decrease in Treasury issuance and significant cash still seeking yield-oriented securities should restrain the rise in Treasury yields. The Federal Reserve (Fed) will attempt to keep interest rates low; however, risks are increasing as inflation becomes more acute, which could pressure the Fed to bring policy rate increases forward at a faster pace.

8 Global equities ..page 12 We expect the rate of earnings growth to slow in 2022 but still anticipate record profitability potentially sending equity prices to new all-time highs. We favor large-cap and mid-cap equities over international equities, and cyclical and growth sectors over defensive real assets ..page 16 We expect the ongoing economic recovery to support increased commodity demand and higher prices. We remain favorable. Real estate investment trust (REIT) fundamentals appear solid, yet higher interest rates may be a headwind. We remain neutral.

9 Global alternative investments* ..page 18 We pivot our hedge fund guidance in 2022 away from COVID-19 recovery and high-beta opportunities toward strategies that provide diversification and noncorrelated returns to global risk assets. For Private Equity, our bias is toward small- and mid-cap buyout, growth equity, and venture capital; in Private Debt, we prefer direct lending to distressed and special 5 portfolio ideas for 2022 ..page 20* Alternative investments are not suitable for all investors and are only open to accredited investors or qualified investors within the meaning of the securities laws.

10 They are speculative, highly illiquid, and designed for long-term investment and not as trading 's inside 4 | 2022 Outlook Please see pages 25&27 for important definitions and risk economic and market forecastsEconomic forecasts2021 latest*1 2022 year- end GDP (Q3) CPI (Oct.) unemployment (Nov.) GDP (Q3) market GDP (Q3) market (Q3) GDP (Q3) (Nov.) market GDP (Q3) market (Q3) Income targets2021 latest*2022 year- end targetFederal funds Treasury Treasury : Wells Fargo Investment Institute and International Monetary Fund (IMF), December 8, 2021.