The latest conflict in Iran has injected fresh volatility into global markets. Here are potential scenarios and implications for portfolios across asset classes.
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.
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.
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.
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.
Alex Wright, portfolio manager of Fidelity Special Situations & Special Values, shares his outlook for 2025 and provides an insight into how he is looking to position the portfolios against an evolving macro backdrop.
Emerging markets roar back
In its November meet, as was widely expected the Bank of England cut interest rates from 5.0% to 4.75%, joining many central banks in developed market who are all now amidst a rate cutting cycle. Against this backdrop, Ben Deane, Investment Director for fixed income, assesses the credit landscape, while highlighting why he believes that all-in yields remain attractive and the recent rise in yields offers an attractive entry point for investors.
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.
Donald Trump has won the US presidential election. Here, Fidelity International’s economists and investment managers discuss some of the likely impact.
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.
Portfolio manager Talib Sheikh shares his take on the US election result, the outlook for asset classes and how Fidelity’s multi asset income range is positioned, highlighting the increased exposure to defensive quality income equities.
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.
Recent spikes in market volatility, slowing macro signals and stretched valuations are among the many signs that are pointing to a global slowdown. In this environment, portfolio managers Kris Atkinson and Shamil Gohil outline why they are de-risking portfolios and shoring up liquidity as they focus on high quality alpha opportunities and lock in still attractive all-in-yields in investment grade credit markets.
Our Multi Asset team's views on which asset classes and markets are presenting the greatest opportunities and risks.
One of the most consistent themes in financial markets over the past 15 years has been the outperformance of US equities. A dollar invested in the S&P 500 at the low of the financial crisis in 2009 would now be worth over $10, more than double the return from European equities and around three times the return from UK, emerging markets or Chinese equities. An allocation of 100% US equities would have been difficult to beat. Why have US equities been so successful and will the trend continue?
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.