Executive summary

Please note the views in this document should not be seen as investment advice. If you are unsure about the suitability of an investment, you should speak to an authorised financial adviser.

Asset classes Current view 3 Month Change  
Equities     The main drivers of the equity bull market are now played out. A sideways market is possible but capital preservation should be the focus.
Bonds     Federal Reserve policy has reached a watershed and tightening is now the order of the day. Invest in bonds for diversification not capital growth.
Property     Real estate continues to offer investors a reliable income in a low interest rate world. Avoid the frothier areas, though, where yields look too low.
Commodities     Oil looks to be in a sideways range as OPEC cuts offset Shale production. Gold is a useful hedge against geo-political uncertainty.
Cash     Cash looks even more useful than it did three months ago. A store of value and a source of firepower if and when a market correction arrives.
Equity Regions Current view 3 Month Change  
US     Wall Street remains the world’s most expensive market, with a worryingly narrow leadership in technology. Better value elsewhere.
UK     The political outlook is unhelpful and many UK investors have too much exposure to their home market. Income remains the main attraction.
Europe     Decent economic outlook, reasonable valuations, some great companies and a helpful central bank. Still one of the best places to invest.
Asia Pacific ex-Japan     The Asian growth story remains intact. China is back on international investors’ radar. India is pricy but it deserves its premium rating.
Japan     Good growth, rising earnings, deflation seemingly beaten. Japan is in better shape than for a long time. The only cloud is North Korea.

Key

Current View:
  Positive,   Neutral,   Negative

3 Month Change (since the previous Investment Outlook)
  Upgrade,   Unchanged,   Negative

Important information: Please be aware that past performance is not a reliable indicator of what might happen in the future. The value of investments and the income from them can go down as well as up, so you may not get back what you invest. When investing in overseas markets, changes in currency exchange rates may affect the value of your investment. Investments in small and emerging markets can be more volatile than those in other overseas markets. Reference to specific securities or funds should not be construed as a recommendation to buy or sell these securities or funds and is included for the purposes of illustration only. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. Fidelity Personal Investing does not give personal recommendations. If you are unsure about the suitability of an investment, you should speak to an authorised financial adviser.

Fidelity uses cookies to provide you with the best possible online experience. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on our site. However, you can change the cookie settings and view our cookie policy at any time.