The shape of economic recovery varies significantly across regions, despite most countries facing the same Covid-19 variants. Here we look at key regional trends forecast by our analysts for the year ahead.

US equities continue to benefit from resilient economic growth, robust corporate earnings and accelerated investment in artificial intelligence. Yet concerns around concentrated market leadership, elevated valuations and a more uncertain interest rate environment suggest that investors may need to look beyond familiar large-cap names for the next phase of market leadership and opportunity.

This virtual event is accredited for 1 hour 50 minutes of CISI endorsed structured CPD. To qualify, 75% viewing time is required.

Fidelity’s Global Macro and Strategic Asset Allocation team explain why higher bond yields alone do not necessarily improve the appeal of government bonds. They outline what factors might support the case for extending duration in broader portfolios against an evolving investment backdrop.

he buzz around the “metaverse” has gone into overdrive as the technology that could make it a (virtual) reality draws closer and internet giants make big bets on its success. But is it all it’s cracked up to be? And does it ‘meta’ for investors?

The most innovative stocks at the forefront of ESG investing have seen their share prices rise by up to 10 times over the last two years, prompting talk of an ESG bubble. Yet, a broader group of less well-owned ESG stocks trade at only a modest premium. Jamie Harvey, portfolio manager of the Fidelity Sustainable Global Equity Fund highlights the growing opportunities in these under-appreciated stocks that offer significantly higher quality and growth prospects.

While domestic consumption of sustainable products remains nascent, Victoria Mio, Director of Asian equities, discusses why China’s exporters are tapping into demand for ‘green’ goods from consumers and businesses around the world.

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 Covid-19 forming. 

AI remains a powerful theme, but market leadership is evolving. Portfolio Managers Chris Forgan and Caroline Shaw discuss how we're positioning portfolios to capture a broader range of opportunities across global markets.

Risk assets have been supported during 2021 as five key tailwinds peaked, although Fidelity MoneyBuilder Income and Short Dated Corporate Bond portfolio managers Sajiv Vaid and Kris Atkinson believe each of these will trend down as we head into 2022. Against this backdrop, high-quality corporate bonds should offer an attractive prospect for investors looking for a combination of income and safety.

Rising energy prices and renewed inflation risks have prompted markets to price in further rate hikes across several developed economies. Mike Riddell, Lead Portfolio Manager of the Fidelity Strategic Bond Fund, explains why, while markets may be pricing too much tightening, growing pressure at the long end of bond markets calls for a more selective approach.

UK equities have delivered strong returns and recently reached new highs, but compelling contrarian opportunities remain. With market leadership broadening, the backdrop for stock selection is becoming more supportive. Here, portfolio managers Alex Wright and Jonathan Winton highlight where they are seeing the most compelling opportunities across the market-cap spectrum.

Fidelity Asia Pacific Opportunities portfolio manager Anthony Srom explains why caution and selectivity will be key for 2022. He gives his investment outlook for the region and outlines the pockets of the market which he believes offer attractive upside potential for discerning stock pickers.

The Fed hikes rates as expected to confront stubborn inflation, while unanimity gives Chair Warsh the institutional protection he may need.

Sam Morse and Marcel Stötzel, portfolio managers of the Fidelity European Fund and Fidelity European Trust PLC, outline why they believe Europe could be at the forefront of the next decade of innovation, and why this creates significant opportunities for patient, long-term investors who are will willing to back European innovation and benefit from the leaders of the next decade.