Fidelity

The latest conflict in Iran has injected fresh volatility into global markets. Here are potential scenarios and implications for portfolios across asset classes.

In this monthly video series, our Multi Asset team break down what’s changed in markets, what’s new, and what they’re watching next. This month, portfolio manager Chris Forgan highlights how recent geopolitical tensions underscore the importance of diversification, with gold and broad commodity exposure helping steady portfolios. He also explores why a supportive global backdrop keeps us pro‑risk, with emerging markets remaining a standout opportunity and selectivity key as the AI theme becomes more disruptive.

The US’s actions in Venezuela, rhetoric around Greenland, and ongoing tariff threats are the actions of a traditional hegemon rather than a steward of a globalist system. Alongside Germany’s shift towards expansionary fiscal policy and Canada’s calls for the middle powers to unite, they are symptomatic of intensifying geoeconomic fragmentation.

Emerging markets roar back

In March, tragic and concerning developments in the Middle East have added complexity to the narrative around emerging market (EM) equities. Conflict in the region has increased market volatility, prompted some de-risking across the EM complex and pushed oil prices higher, potentially affecting inflation. Here, we consider the potential impact of recent events on the broader EM asset class, individual markets, commodities, and the US dollar. It is important to note that events in Iran and the Middle East are developing rapidly, and our views are subject to change as events evolve.

Prime Minister Sanae Takaichi’s landslide victory in snap parliamentary elections gives investors more reasons to be optimistic about Japan.

In this monthly video series, our Multi Asset team break down what’s changed in markets, what’s new, and what they’re watching next. This month, portfolio manager Caroline Shaw explores our shift toward greater cyclical exposure, looking at how a strong economic backdrop and supportive policies have led us to add US mid‑caps and broad commodities, and what this means for capturing growth while managing inflation risks.

As we enter the Year of the Horse, our investment team assess the risks and opportunities facing investors across China’s markets. With the Year of the Fire Horse symbolising energy, ambition and endurance, we examine the macro and micro factors that are combing to strengthen the investment outlook for Asia’s largest economy.

Our Multi Asset team's views on which asset classes and markets are presenting the greatest opportunities and risks.

European equities are trading at a historically wide discount to US equities across almost all valuation metrics and sectors. While part of this gap reflects weaker growth, lower returns on equity, and Europe’s sector mix, the scale of the discount is increasingly difficult to justify on fundamentals alone. With pessimism deeply embedded in prices and expectations low, our investment team highlight why the selective upside is now increasingly compelling.

A year on from the Sustainability Disclosure Requirements (SDR) marketing rules being applied to UK funds, new definitions of what constitutes a sustainable product have reshaped the market. Fidelity’s Chief Sustainability Officer Jenn-Hui Tan outlines why progress from here will depend on the extent to which providers navigate regulatory complexity, distributors gain comfort with the new labels and market dynamics affect sentiment towards sustainable funds.

In this monthly video series, our Multi Asset team dissect what's changed in markets, what's new and what they're keeping an eye on. This month, portfolio manager Chris Forgan turns the spotlight on emerging markets – where lower valuations, a softer US dollar, and policy flexibility are creating a compelling backdrop.

Huge artificial intelligence capital expenditure has been a key theme for the technology sector and wider global equity markets this year. Fidelity Global Technology portfolio manager, Hyun Ho Sohn, discusses whether this is sustainable and highlights where he sees attractive opportunities across broader global technology, both within AI and beyond.

Short dated high quality corporate bonds are once again emerging as an attractive opportunity for cautious income focused investors. The 1-to-5-year investment grade segment delivers a clear yield premium over cash and government bonds, offers low duration risk and retains a much stronger credit profile than high yield. Here, we highlight how this profile has driven one of the strongest long-term risk adjusted returns across major fixed income markets and why it remains a compelling choice for investors seeking income without taking on unnecessary risk.

Dale Nicholls, portfolio manager of Fidelity China Special Situations PLC, dives into the shifts reshaping China’s equity landscape, revealing how market dislocations and on-the-ground research could unlock compelling opportunities.

Alex Wright, portfolio manager of Fidelity Special Values PLC, shares why the UK remains a compelling destination for investors. Despite UK equities hitting record highs and international interest returning, opportunities remain.

Our analysis indicates that traditional 60/40 portfolios will be less able to cope with today’s new regime of fragmentation and global rewiring. We have therefore identified six actions that investors can take to make their portfolios more fit for this new environment: