A tale of two markets

UK equities have delivered strong returns and recently reached new highs, but compelling contrarian opportunities remain. With market leadership broadening, the backdrop for stock selection is becoming more supportive. Here, portfolio managers Alex Wright and Jonathan Winton highlight where they are seeing the most compelling opportunities across the market-cap spectrum.

Asia has faced a challenging period over the past year, but with China’s reopening improving sentiment and tech-heavy markets such as Taiwan and South Korea rallying sharply, how can investors benefit from this improving backdrop? Fidelity Asia Fund portfolio manager Teera Chanpongsang examines the evolving market environment and outlines where he sees greatest investment potential.

The Fed hikes rates as expected to confront stubborn inflation, while unanimity gives Chair Warsh the institutional protection he may need.

Strong earnings meet a higher hurdle rate

Global CIO Andrew McCaffery shares his latest outlook for Asia. He discusses how the region is likely to fare against a global backdrop of looming stagflation and outlines three themes we will be focusing on over the coming months: China’s direction, inflation dynamics, and the search for income.

The bond sell-off is changing character

Value stocks and sectors have rallied sharply over recent times, driven by shifting expectations for inflation and monetary policy. Our value-focused portfolio managers discuss what lies ahead for investors in the US and UK markets, with a focus on the evolving opportunity set in the financials sector.

Equities are climbing, but bond markets are telling a different story. Chris Forgan and Caroline Shaw explain what rising yields mean for portfolios and where they still see opportunities.

Having recently gone through a successful 10 years at the helm of Fidelity Global Situations, portfolio manager Jeremy Podger looks ahead to what the next decade could have in store for investors. In particular, he identifies 10 trends that are set to increasingly influence returns and discusses what this means for stock selection and portfolio construction.

Our Multi Asset team's views on which asset classes and markets are presenting the greatest opportunities and risks.

Steve Ellis, Global CIO Fixed Income, provides his outlook for bond markets against a challenging macro backdrop of slowing growth and inflationary risks. He outlines why investors should not fear duration in the current environment and, within this construct, reveals three key areas where we are focusing our attention: inflation protection, high quality credit and Asia.

The rise in global bond yields is broadening from a repricing of central bank policy into a wider reassessment of inflation, fiscal risk and the supply of duration. While the near-term backdrop remains challenging, higher yields are improving prospective fixed income returns, reinforcing opportunities in quality credit and fixed maturity strategies.

Something unusual has been happening in China’s currency and bond markets. As several major currencies have weakened against the US dollar this year, China’s renminbi has held up surprisingly well. Chinese government bonds have also been an oasis of relative stability as yields have shot up elsewhere. So, is China flirting with global safe-haven status?

Jason Humphrey provides his expert insight into what should be on investors’ due diligence checklist when selecting equity index funds. Within this, he highlights the operational factors that have the potential to have a much more significant impact on investment outcomes than small differences in ongoing charges.

Discover the key themes set to drive markets and the investment implications. We have also included the asset class views and investment implications for Q2 2022.

Despite the return of higher energy prices, we see little evidence that they are feeding into broader inflation - however, markets continue to price in expectations of further rate hikes across several regions. Meanwhile, resilient growth across many regions provides a potentially more supportive backdrop, but one that remains challenging to navigate. Mike Riddell, Portfolio Manager of the Fidelity Strategic Bond Fund, discusses the key drivers shaping rates markets and where he sees the risks and opportunities for bond investors.

From US ADR de-listings to geopolitics and rising Covid cases, there have been no shortage of issues for investors in China to face of late. Fidelity China Consumer Fund portfolio manager Hyomi Jie shares her latest thoughts on the market backdrop and outlines where she sees a disconnect between sentiment, valuations and fundamentals.