Energy disruption has moved from tail risk to a central market driver. With commodities providing the most reliable hedge and broader fundamentals still supportive, the focus is on staying flexible - ready to add risk if tensions ease while managing downside if energy shocks persist.
US-Iran tensions have triggered a sharp spike in oil prices, raising fresh questions about inflation, growth and the outlook for global bond markets. Mike Riddell, Portfolio Manager of the Fidelity Strategic Bond Fund, explains why markets view the disruption as a near-term shock, how geopolitics is reshaping the macro backdrop, and where he is currently positioning the portfolio to capture alpha while managing downside risks.
Global markets are adjusting to disruption at key trade choke points as volatility remains elevated. With risks skewed to further escalation, senior members of our investment team assess the implications for growth and inflation and highlight the benefits of diversification, selectivity and flexibility in an uncertain environment.