Our view at a glance

Asset classes Current view 3 Month Change  
Shares     There is plenty to worry about but a strong case can be made for shares if trade tensions subside and the Fed delivers expected rate cuts.
Bonds     Bonds have enjoyed a strong first half on the back of the Fed’s easier stance this year. After a big fall in yields, the gloomier outlook is priced in.
Property     Falling interest rates will help prolong investors’ love affair with property. But yields are too low for comfort and in the UK retail looks vulnerable.
Commodities     The oil price looks to be locked into a wide trading range. Gold on the other hand could have further to go as a safe haven if the dollar falls further.
Cash     Cash is losing what little income attraction it had as interest rates fall again. But it’s always good to have some dry powder in volatile markets.
Equity Regions Current view 3 Month Change  
US     Valuations are still high, but Wall Street continues to lead global markets higher. A lot depends on the Fed and Trump’s pre-election push.
UK     There’s no shortage of uncertainty this summer around leadership, Brexit and the economy. But the bad news is well and truly priced in.
Europe     Vulnerable to trade tensions, Europe is out of favour. But the ECB is supportive and stock-pickers can still find plenty of good opportunities.
Asia Pacific ex-Japan     China needs to find a solution to the trade stand-off with America but has the power to stimulate its economy. India is stable post-election but pricy.
Japan     A perennial disappointment to investors, Japan is the ultimate contrarian play. Unpopular but very cheap and with potential to improve.

Key

Current View:
  Positive,   Neutral,   Negative

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


Important information:
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. Please be aware that past performance is not a reliable indicator of future returns. 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. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. 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 personal recommendation for any investment. If you are unsure about the suitability of an investment, you should speak to an authorised financial adviser.

 

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