Our view at a glance

Asset classes Current view 3 Month Change  
Shares     Earnings growth remains positive, valuations are reasonable and the alternatives unattractive. Shares remain the asset class of choice.
Bonds     Government bonds and emerging market debt look more interesting than corporate credit. Bonds remain a good diversifier.
Property     Prime property remains expensive. As yields rise on other assets, the risks of holding an overpriced asset for income are hard to justify.
Commodities     Oil, industrial metals and gold all have their attractions at the tail end of the economic cycle and after price weakness in 2018.
Cash     With a growing focus on capital preservation and volatility creating opportunities, cash is always welcome in a portfolio.
Equity Regions Current view 3 Month Change  
US     Still the most highly-valued stock market but, after a fourth quarter fall of nearly 20%, the US is oversold.
UK     The UK could be the contrarian call of 2019 as the Brexit fog lifts. Deeply unloved, the London market looks cheap. A great source of income.
Europe     Another decent income play, with positive total returns expected. But politics casts a long shadow over the region.
Asia Pacific ex-Japan     Another contrarian call while the US/China trade tensions remain unresolved. But 2018 was such a poor year that valuations are compelling.
Japan     Out of favour, with some headwinds to come in 2019. But there’s a good story too and the market has become increasingly cheap.

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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