Risk markets have bounced meaningfully from their lows in October, helped by peaking inflation, falling rates volatility, an end to the dollar’s rally, and China’s reopening. However, there are many challenges ahead and we are still positioned for a hard
Q4 2022 Investment Outlook: The global economy is facing a confluence of shocks, most recently the severe reaction in UK assets and FX to the new fiscal package (roughly 10% of GDP, unfunded). Market confidence has continued to slide on
Global Asset Allocation Insights Inflation is still stubbornly high, meaning the Fed and the ECB are keeping their feet pressed down on the hawkish pedal for now. However, growth data is turning sharply negative in developed markets as the consumer
Biodiversity will become one the largest investment megatrends in our lives, and the theme is at an inflection point Biodiversity: The neglected existential risk Much of the investment industry’s rhetoric is about capital – whether that’s financial, produced, human or
Last month, we discussed how the market narrative was evolving and investors were beginning to put more onus on the challenges to growth. That trend continued in July as traders increasingly incorporated how restrictive monetary policy could slow activity. Towards
Negative supply shocks and the hangover from large demand-side stimulus are keeping global inflation stubbornly high. Central banks, most notably the US Federal Reserve, are committed to reducing inflation by significantly tightening financial conditions. The extreme …
The quarter that just ended was dramatic in many respects. The Russian invasion of Ukraine caused a humanitarian crisis that will have long-lasting consequences, and one that has significantly reshaped the geopolitical landscape. The events that have unfolded also sent
We remain defensive as geopolitical risks escalate. The war in Ukraine and associated sanctions on Russia increases the risk of further negative supply shocks to commodities and supply chain disruptions, adding to the case for persistently high inflation and slower
The dramatic escalation of the Russia-Ukraine crisis is a worrying development with serious macro and market implications. Our asset allocation view has been cautious since late last year and is likely to remain so given the spectre of war in
Once investors have decided to invest in digital assets, the next question becomes, “Which one?” Of course, bitcoin is the most recognized, first-ever digital asset, but there are hundreds and even thousands of other digital assets in the ecosystem. One
The medium-term outlook for the current cycle remains healthy and supportive for equity markets. However, there are several near-term risks. Short-term growth momentum is slowing, key central banks are moving towards faster policy normalisation, and there is another wave of
Fixed income funds invest in bonds whose price is influenced by movements in interest rates, changes in the credit rating of bond issuers, and other factors such as inflation and market dynamics. In general, as interest rates rise the price
New research from Fidelity explores bitcoin’s characteristics, potential benefits and risks, and other implementation considerations KEY TAKEAWAYS We believe bitcoin is an aspiring asset class in a period of price discovery. Like gold, bitcoin is a high-powered, opportunistic hedging asset
Strategy Summary The FIXED INCOME MONTHLY provides a forward-looking summary of the medium-term views from the Fidelity Fixed Income team. Our investment approach is multi-strategy, with portfolio managers given clear accountability and fiduciary responsibility for all investment decisions in a
Central banks remain in the driving seat for rates markets and the June Fed meeting was the most recent example of how sensitive markets are to even small changes in the outlook for monetary policy. June’s FOMC meeting saw a
The rapid roll-out of vaccinations across the US and the UK, with Europe catching up, pushed developed market PMIs once again to record highs in May. Business activity and new orders have accelerated across both manufacturing and services sectors, business
The global recovery has continued to gain traction in recent months, taking an uneven shape across regions. The Covid-19 pandemic is far from over, with recent virus surges and uneven vaccine roll-out continuing to challenge the timeline for economic reopening,
Outlook 2021 Fidelity International’s outlook for the global economy, multi asset, equities, fixed income and real estate If you are reading this, then you’ve lived through one of the most volatile periods in market history. The year to come may
Fidelity International China Stewardship Report 2020 To many outsiders, Chinese equity investing might conjure up images of a huge, freewheeling market where millions of retail investors revel in speculation and sustainability is an alien concept. But developments on the ground
The FIXED INCOME MONTHLY provides a forward-looking summary of the medium-term views from the Fidelity Fixed Income team. Our investment approach is multi-strategy, with portfolio managers given clear accountability and fiduciary responsibility for all investment decisions in a portfolio. Given
Market Update Despite economic data having weakened substantially the equity rally in the US has continued unabated, with markets up over 30% from their lowest point in late March. Meanwhile, policymakers have …
The FIXED INCOME MONTHLY provides a forward-looking summary of the medium-term views from the Fidelity Fixed Income team. Our investment approach is multi-strategy, with portfolio managers given clear accountability and fiduciary responsibility for all investment decisions in a portfolio. Given
Despite economic data having weakened substantially the equity rally in the US has continued unabated, with markets up over 30% from their lowest point in late March. Meanwhile, policymakers have continued their aggressive efforts at damage control which has seen
The Covid-19 pandemic remains the only real theme driving markets, as investors look for clues as to what the ultimate impact of the crisis will be on economic growth, industrial sectors and asset prices. The jury is still out, with
We believe the Covid-19 crisis will trigger a step-change in policy, accelerate existing trends and transform investment frameworks. Government intervention, fiscal activism, corporate governance and sustainability, and continued Asian economic strength will characterise this new order, creating …
The court ordered the German government to ensure the ECB carried out a “proportionality assessment” of its vast purchases of government bonds. Whilst the ECB should be successful in proving that its purchase scheme was necessary and “proportional”, further expansion
Across the Multi Asset Open range, gold has been an important asset and hedging component for the portfolios over the last few years. Chris Forgan, Portfolio Manager and Charlotte Harington, Assistant Portfolio Manager of the Fidelity Multi Asset Open range
Even by the oil market’s standards 2020 has been exceptionally volatile. The market has faced unanticipated supply and demand shocks, leading to the commodity’s worst quarter in history. Louise Fribourg, Markets Analyst within our Multi Asset team explores what the
As economic data is finally reflecting the impact of economic lockdowns, markets have seen a meaningful risk rally, with US markets recovering significantly from the over 30% drawdown depths. Given the extent of the slowdown and the still uncertain duration
Our view is that allocating to defensiveness is more important than timing a bottom in asset prices and adding to risk at this stage. The Japanese yen is increasingly showing its defensive properties, Chinese government bonds are offering attractive yields,
We are living in extraordinary times. Alex Wright, portfolio manager of the Fidelity Special Situations Fund and Fidelity Special Values PLC discusses his new view on the world, through his old contrarian lens. He explains some of the changes he
With US unemployment on a continuous upward spiral and Eurogroup finance ministers at a stalemate to move the Eurozone forward, we discuss what the broader implications are for markets. The Fidelity Leading Indicator – our proprietary quantitative tool that anticipates
With large swathes of the world’s population on lockdown and economic activity on hold, we assess the likely damage to dividend payments over the coming months. We outline how Fidelity’s equity income portfolios are navigating this environment and why selectively
Fidelity Global Special Situations Fund Manager Jeremy Podger reviews what has been one of the most eventful periods in a career spanning over 30 years. He also looks ahead to three distinct phases of the coronavirus pandemic – escalation, recovery
Monthly Review Sovereign bond yields reached record lows as the outbreak of the coronavirus in Europe initiated a large sell-off globally. 10-year US Treasury yields posted another big monthly decline and outperformed other markets, driven by safe haven demand. German Bund and UK
Fidelity Multi Asset – Core Allocations The economic impact of coronavirus is hard to predict while the situation remains fluid and opaque. However, the medical and monetary policy response from Chinese authorities is encouraging. If the spread has been successfully thwarted
Fidelity Multi Asset – Core Allocations Last year was characterised by investors trading fear for fear of missing out as global central bank intervention helped drive equity markets, particularly in the US, to all-time highs. As we start 2020 we
A unique perspective on the trends that will shape the corporate landscape in 2020 from our analysts. Decisions need data. And the Analyst Survey, taken by our 151 analysts, provides mountains of it. Behind the charts, articles and infographics are
Investment outlook Q1 2020 Equities and credit are now moderately overweight, while government bonds in the near term have been downgraded to neutral. European and UK equities should benefit from lower political risk, loose monetary policy and some de-escalation in global trade
As we move towards the end of the year, we have seen risk asset strength continue unabated with the US equity market hitting all-time highs regularly throughout the fourth quarter. Government bond yields have broken from their 2019 pattern of
Asian markets have become polarised over recent months with large-cap stocks driving market gains. As a small-cap investor, Fidelity Asian Values PLC’s Nitin Bajaj reviews a challenging period and outlines some of the unloved areas that he is backing to
The near-term impact of the election result has been positive for markets, but what are the longer-term implications for the UK as a destination of global capital? Fidelity Global Special Situations Fund Manager Jeremy Podger gives his view on the
Equity Market Update Markets in 2019 Monetary to fiscal stimulus Too early to get out of equities?
Fidelity Multi Asset Risk asset have continued to march ahead, with US markets reaching alltime highs again in early November as the earnings season came in better than expected, and at least a temporary truce in the US-China trade dispute appears
October 2019 As we start the final quarter of 2019, volatility has increased relative to the first half of the year, equity markets remain strong year-to-date, and a bid for safe-haven assets has been maintained. Monetary policy has undergone a dramatic shift over
As we start the final quarter of 2019, volatility has increased relative to the first half of the year, equity markets remain strong year-to-date, and a bid for safe-haven assets has been maintained. Monetary policy has undergone a dramatic shift
Maintaining a focus on quality credit: 2019 has seen a spike in overall levels of negative yielding debt. This has resulted in the ‘reach-for-yield’ becoming even more pronounced, and investors moving down the capital structure to earn income. Against this
Central banks turn on the taps You wait months for an interest rate cut and then they come along at once. Two so far from the US Federal Reserve with the probability of a third at the next meeting later
At Fidelity Multi Asset, we have been investing in alternatives for over a decade, and currently hold a wide range of alternative assets in our multi asset strategies. Our large Manager Research team includes dedicated alternatives analysts, focused on finding
Legendary investor Warren Buffett’s much-quoted dismissal of the investment merits of gold is simple: the metal is “neither of much use nor procreative.” But the Oracle of Omaha has got this wrong. We believe that contrary to Warren Buffett’s complaints
