China’s equity markets have declined further over recent weeks off the back of weak data and a subdued response from policymakers. Marty Dropkin, Head of Equities - Asia Pacific, considers recent moves in the context of China’s broader economic objectives and outlines where our local team are identifying pockets of resilience and innovation, which could reward investors willing to take a long-term view.

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 economy continues to deliver surprises but we are confident of one thing: if US and other developed world interest rates have not peaked already, then they will do so soon. With growth set to stall, Global Head of Macro and Strategic Asset Allocation Salman Ahmed details four potential scenarios for 2024 and the next leg of a business cycle, which has seen the most intense round of monetary tightening in a generation.

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.

Alex Wright, portfolio manager of the Fidelity Special Situations Fund and Fidelity Special Values PLC, shares his outlook for UK equities in 2024. He highlights the unloved areas of the domestic market where he sees potential for recovery and discusses why we could be at the start of a sustained period of outperformance from UK value stocks and sectors.

Asia remains an attractive market for long-term investors with structural growth across markets, driven by a growing middle class and increasing penetration of consumer products and services. Fidelity Asia Fund portfolio manager Teera Chanpongsang outlines how investors can best position to benefit from the region’s growth story in 2024 and beyond.

Emerging markets roar back

While the UK macro picture remains challenging, portfolio manager Alex Wright believes investment opportunities are still available for those who know where to look. He reviews recent market movements and highlights how Fidelity Special Situations & Special Values PLC are positioned to capitalise on unloved areas with overlooked potential.

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.

Global CIO Andrew McCaffery and senior members of our team review current market dynamics and provide an insight into the implications of recent macro and policy developments. They outline how this evolving backdrop is informing our views across asset classes as we head into the final quarter of 2023.

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

With US labour markets still strong, the Federal Reserve is sticking to its “higher for longer” messaging. Global Head of Macro & Strategic Asset Allocation Salman Ahmed analyses the future direction for inflation and growth and believes the US economy could be in for a shock next year when the impact of higher rates finally start to bite.

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.

In a more volatile, multipolar world, should investors be reconsidering portfolio allocations and revisiting the opportunities on offer across Asia? Investment Directors Catherine Yeung and Vanessa Chan outline the attractive growth potential and diversification characteristics of Asia’s financial markets in the wake of recent macro and geopolitical shifts.

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.

While lower for longer was the mantra of the last decade, there is a new catchphrase in town - higher for longer. As income-seeking investors adjust to this new environment, our fixed income investment team outline why the high-quality class looks well placed to command increased allocations and deliver relatively attractive risk-adjusted returns.

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