Outlook at a glance

Asset classes Current view 3 Month Change  
Shares     A period of slower but more sustainable gains beckons. The rotation from growth to value looks likely to continue.
Bonds     The outlook for government bonds is poor as recovery, growth and inflation expectations rise. Spreads are also too tight in corporate bonds.
Property     Real estate continues to be under the influence of the ‘gravity of yield’. A wall of money is chasing the income it offers yield-hungry investors.
Commodities     The case for a commodity super-cycle is strong as policy shifts towards redistribution and with a focus on building out green infrastructure.
Cash     With bonds losing their allure as a diversifier in a portfolio, cash becomes even more important as a store of value.
Equity Regions Current view 3 Month Change  
US     The US is exposed to tougher times ahead for growth stocks but policy support and quality argue for maintaining a high US weighting.
UK     The UK has been out of favour for a long time and the outlook is now much better than still cheap valuations might suggest.
Europe     The upsurge in infections means that the European recovery is on hold. After a good run, the region might pause for breath.
Asia Pacific ex-Japan     A strong case can be made for emerging markets during a global upswing, especially if the dollar weakens from here.
Japan     The key to Japan is not the domestic market but what’s happening globally and that looks positive. Valuations are not demanding.


Current View:
  Positive,   Neutral,   Negative

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

Important information: Please be aware that past performance is not a reliable indicator of future returns. 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. The Select 50 is not a personal recommendation to buy funds. 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. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to a Fidelity adviser or an authorised financial adviser of your choice.

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.