The shift towards digital labour represents one of the biggest business model pivots of all time, with huge ramifications for virtually every industry. It is already propelling US growth through unprecedented corporate capital spending, which shows no sign of abating even if financing is increasingly debt-fuelled and circular in places. The hugely cash-generative hyperscalers continue to commit to massive investments, underpinning impressive earnings from AI infrastructure supply chain businesses such as semiconductor manufacturers, energy providers and certain commodity suppliers, especially where inventories are scarce.
Alex Wright, portfolio manager of Fidelity Special Situations & Special Values shares his perspectives on the recent tariffs-related market volatility. Against a backdrop of global uncertainty, he highlights why the UK market with its low valuations, strong earnings growth and high dividends remains an attractive environment for contrarian stock pickers, and well positioned to weather the tariff storm.
The unpopularity of the UK market in recent years has made it an attractive hunting ground for contrarian value investors. While investors continue to be seduced by the charms of the US technology sector, we believe the UK market has an underappreciated richness of opportunity, combining strong earnings growth, high dividend yields and low valuations.
AI driven volatility is reshaping markets and creating one of the most compelling investment backdrops in recent years, reminiscent of the Covid 19 period. Alex Wright, portfolio manager of Fidelity Special Situations and Special Values PLC, outlines how AI led disruption is driving widespread dislocation across sectors, creating selective opportunities that increasingly favour value investors.
The new US tariffs sound the death knell of globalisation. Markets have under-estimated their scale and there are substantial risks to global growth as a result
The technology sector has had a volatile start to 2026, but Fidelity Global Technology portfolio manager, Hyun Ho Sohn, remains positive. He discusses why the risks to software companies from AI may be overdone, the diverse opportunities to be found across the global technology sector, and key trends emerging from the recent earnings season.
Tariffs, funding freezes, and government spending cuts have caused investors to reassess the outlook. The chances of stagflation have grown, but policy will stabilise, and opportunities will appear, both domestically and globally.
The Supreme Court struck down President Trump’s 2025 sweeping global tariffs in a 6-3 ruling on Friday. The decision covers all of the country-wide reciprocal tariffs in the International Emergency Economics Power Act (IEEPA), including the fentanyl tariffs on China, and the border emergency tariffs on Canada and Mexico. Other measures, including pre-existing tariffs on China and sectoral tariffs on the likes of steel, aluminium, and autos, remain in place.
Mike Riddell, portfolio manager of Fidelity Strategic Bond Fund, provides an overview of the macroeconomic environment and outlines his views across the strategy’s main alpha sources. Against a backdrop of increased global market volatility, potentially signalling the end of the US exceptionalism trade, he outlines why the team has become less bullish on US Treasuries in the context of less attractive valuations.
Our Multi Asset team's views on which asset classes and markets are presenting the greatest opportunities and risks.
Sam Morse and Marcel Stötzel, portfolio managers of Fidelity European Fund and Fidelity European Trust PLC, examine the challenges and opportunities facing investors in European equities. Despite an uncertain macro backdrop, they explain why a focus on high quality companies with strong balance sheets and sustainable dividend growth can continue to drive attractive long-term returns for investors in the region.
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.
China's economic landscape presents a mix of challenges and opportunities for investors. While tariffs and regulatory concerns have impacted sentiment, the focus on domestic revenue-generating companies and supportive government policies offer a cautiously optimistic outlook. Fidelity China Special Situations PLC portfolio manager Dale Nicholls shares his latest thoughts on the investment outlook for China and how the trust is positioned to navigate the current environment.
Japanese Government Bond yields sharply sold off at the long end following Sanae Takaichi’s landslide victory in the recent Japanese snap election, strengthening her mandate to pursue fiscal expansion. Mike Riddell, Portfolio Manager of the Fidelity Strategic Bond Fund, discusses the potential implications for global fixed income markets - should policy shift further. He also sets out his assessment of the broader macroeconomic backdrop and where he currently sees the main drivers of alpha within the strategy.
Fidelity Emerging Markets portfolio managers Nick Price and Chris Tennant discuss their outlook for emerging market equities, exploring signs of stabilisation in China, as well as opportunities in markets as diverse as Mexico and India.
Christine Baalham and Tom Record, portfolio managers of Fidelity World and Global Special Situations, explore the use of AI in banking – using Belgium's KBC Groupe to illustrate what happens when digital capability is treated as core infrastructure rather than an incremental enhancement.
Fidelity China Special Situations PLC portfolio manager Dale Nicholls shares his outlook for 2025 and provides an insight into how he is looking to position the portfolio against an evolving macro backdrop.
In this paper on equity diversification in an era of geoeconomic fragmentation, we consider how shifts in the macro regime are reshaping the equity allocation debate, creating fresh challenges and opportunities.
The ongoing global government bond selloff has pushed 30-year gilt yields to their highest level since 1998, drawing comparisons to the fallout from the Truss government’s 2022 budget fiasco. Fidelity Strategic Bond portfolio manager Mike Riddell explores the key factors driving the sharp rise in bond yields and analyses the implications for UK fixed income markets.