Outlook at a glance

 
Asset classes Current view 3 Month Change  
Shares     The list of things to worry about is getting longer. Shares remain the preferred asset class, but the next phase will be harder work.
Bonds     In a more inflationary environment of rising interest rates and still tight spreads, the risk/reward ratio in bonds is unattractive.
Property     The wall of money is still boosting prices and depressing yields. This is likely to continue but investing with a good manager is key.
Commodities     It’s hard to generalise about the asset class as rising energy prices threaten the growth on which the price of industrial metals depends.
Cash     Many investors we speak to are turning more cautious. It’s always good to have cash to hand to take advantage of any correction.
Equity Regions Current view 3 Month Change  
US     The list of concerns is long, offsetting the positives in the world’s biggest equity market. The US is expensive, but all portfolios need an exposure.
UK     The FTSE 100 is cheap but unexciting. The Mid-caps are pricier but deservedly so and still attractive on a global comparison.
Europe     Europe is now a stock-picker’s market with quality and cyclicals trading at expensive multiples. The economic and earnings outlook is good though.
Asia Pacific ex-Japan     Reading Beijing’s intentions is a challenge for overseas investors. India looks expensive. Asean is an opportunity in search of a catalyst.
Japan     Japan is pulling out of a difficult summer. A new leader, better Covid outlook and cheap valuations make a good case for investing.

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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