Outlook at a glance

 
Asset classes Current view 3 Month Change  
Shares     The V-shaped recovery has run its course but there are still good reasons to remain positive about the outlook for stock markets.
Bonds     The reflationary bond sell-off paused in the second quarter, but yields are set to rise over time and corporate bond spreads are too tight.
Property     In a yield hungry world, real estate continues to have its place in a well-balanced portfolio. A good manager is essential though.
Commodities     The super-cycle took a breather but the case for metals prices to rise sustainably remains intact. Gold is out of favour, perhaps unfairly.
Cash     The 2010 template, when the V-shaped recovery after the financial crisis corrected, makes a good case for holding some cash in reserve.
Equity Regions Current view 3 Month Change  
US     The most expensive market, still. But earnings are pushing ahead, and monetary and fiscal policy remain supportive.
UK     Still lagging its peers, the UK remains an unloved market. As we muddle through Brexit, our home market remains an attractive source of yield.
Europe     There’s a good case for increasing exposure to European shares on growth, valuation and policy support grounds.
Asia Pacific ex-Japan     It’s even harder to generalise about Asia and emerging markets than it usually is. There are plenty of positives but some worries too.
Japan     Japan is having a tough time this year, but the outlook is improving and there’s a mismatch with sentiment and valuations.

Key

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.

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