In this article:
Introduction by Paras Anand, Head of Asset Management, Asia Pacific
The bond market, egged on by dovish central bank rhetoric and US-China trade war concerns, is fearing recession, and the equity market is hoping for continued dovishness and progress in trade disputes. The US economy is slowing down but we don’t think it will slip into recession, so the extent of dovish Fed expectations may be overdone. And trade talks will rumble on - this is not a fleeting battle, it’s a drawn-out war.
Central banks are attempting to extend a cycle that has already gone on for a long time, and this ratchets up the potential volatility we could see as investors weigh up data, policy and political developments. The best defence for investors is maintaining clear-eyed, sober analysis and focussing on the long term.
The Investment Outlook is our flagship quarterly outlook publication that outlines our views on all the major asset classes including equities, fixed income, multi asset and real estate, and details the 'house view'. The views are built on the fundamental research that we undertake on markets, companies, governments, issuers, third-party managers, properties and tenants.
Fidelity’s Global Asset Allocation process combines the granular, on-the-ground views of our research analysts together with a macroeconomic and quantitative framework driven by our strategists. Each quarter, we bring together our regional and thematic experts from across the world to participate in the Quarterly Investment Forum (QIF), where we discuss macroeconomic and geopolitical conditions and how they will impact markets. Each asset class division incorporates this shared understanding into their respective investment and asset allocation decisions. Every month, we hold Global Asset Allocation meetings where divisional Chief Investment Officers (CIOs), global portfolio managers and strategists share and debate views on macro conditions, markets and cross-asset allocation to produce the house view.
Fidelity’s Global Asset Allocation process is led by: Paras Anand, Head of Asset Management, Asia-Pacific, Anna Stupnytska, Head of Global Macro and Investment Strategy (GMIS) and Wen-Wen Lindroth, Lead Cross-Asset Strategist.