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     Investors are questioning whether the first quarter was as good as it gets. But valuations are not stretched after strong earnings growth.
Bonds     The bull and bear cases for bonds are evenly balanced. Inflation and rising interest rates call for caution but secular pressures will keep yields low.
Property     Income in a low-interest-rate world remains the main attraction. But too much money is chasing too few opportunities. Tread carefully.
Commodities     Although commodities do well at the end of the cycle, oil has had a good run and trade wars threaten metal prices. The dollar is a headwind.
Cash     The returns on cash remain unexciting and will stay that way in the UK. But higher volatility makes some dry powder look attractive.
Equity Regions Current view 3 Month Change  
US     The US economy is well supported by tax cuts and fiscal stimulus. The downside of this is upward pressure on interest rates and the dollar.
UK     In the short-term the rally from the March low leaves the UK stretched. But decent economic fundamentals and income warrant inclusion.
Europe     A more mixed picture than at the beginning of the year. Growth has slowed and the euro is a headwind. Valuations provide some support.
Asia Pacific ex-Japan     The tightening of financial conditions due to rising US yields is unhelpful. A good long term structural story but markets ran a long way last year.
Japan     There are political risks to the Japan story, internal and external, but valuations are still attractive given the underlying economic strength.

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.

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