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Equities     The Goldilocks conditions in 2017 - not too hot, not too cold - have been replaced by volatility. But the bull market is still intact.
Bonds     Yields are rising but at current levels there is plenty of buying interest. Corporate debt looks much less interesting than government bonds.
Property     Prime property looks to have entered bubble territory. If you are locked into a good income stay put, but this is not the time to enter the market.
Commodities     Commodities tend to do well at the back end of the economic cycle. Oil looks like it could be pushed higher by a lack of supply in due course.
Cash     In a more volatile environment, it will always make sense to have a little bit of cash in reserve to take advantage of temporary sell-offs.
Equity Regions Current view 3 Month Change  
US     The US economy is in good shape, helped by the Trump tax reforms. Valuations remain unattractive and technology looks vulnerable.
UK     It is hard to generalise about the UK market because it is undergoing a rotation from growth to value. Good stock-picking opportunities.
Europe     The region is no longer the bargain it was at the beginning of last year but fundamentals are good and policy remains accommodative.
Asia Pacific ex-Japan     China remains key to the region. An extended period of stability under President Xi could help to drive through necessary reforms.
Japan     Japan’s economy is in much better shape as deflation is beaten. Valuations are good and Tokyo now ranks as our favoured equity market.


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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