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     A slice of 2018’s returns was brought forward into 2017. Some consolidation is to be expected. A good time to be a stock-picker.
Bonds     The reckoning was postponed again in 2017. The big story was the lack of inflation. High-yielding corporate debt looks most vulnerable.
Property     Real estate remains a source of high and sustainable income. But the end of the cycle is nearer. Parts of the market are frothy; selectivity is key. 
Commodities     Oil has recovered and should trade in its current range. Slowing China limits the outlook for metals. Gold remains an insurance policy.
Cash     With so little volatility in 2017, expect more ups and downs in 2018. In that environment, cash will help investors take advantage of any dips.
Equity Regions Current view 3 Month Change  
US     There are reasons to be both positive and negative on the US but the valuation headwinds marginally outweigh the growth tailwinds.
UK     The UK market has suffered in relative terms as investors focused on Brexit. The bad news is now largely in the price of this defensive market.
Europe     Good growth, a supportive central bank, reasonable valuations. Europe remains our most favoured regional market at the moment.
Asia Pacific ex-Japan     The past year has been profitable for Asia and Emerging Market investors. The long-term growth story remains intact and valuations are reasonable.
Japan     No longer the equity market’s big secret, Japan is back on investors’ radar. But there is still plenty to go for in this cheap market.

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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