Fidelity Worldwide Investment
 

Fidelity's views on the latest market developments

Events that transpired in the recent past are creating significant volatility in the markets. Volatile periods can be unnerving for investors. However, it is important for investors to remain calm and not make hasty decisions during this period.

Fidelity provides a round up of these events and discusses the implications for the market and investors.
Fidelity assesses the situation
  1. S&P DOWNGRADES FRANCE AND AUSTRIA FROM TRIPLE A

    17 Jan 12

    Standard & Poor’s downgraded France and Austria from triple A by one notch to double A plus. Italy, Spain and Portugal were also downgraded two notches, while 14 of the 16 eurozone countries were given a negative outlook.

    This piece outlines the Fed's actions and the implications for investors.

  2. Are Bunds losing their lustre?

    24 Nov 11

    Weak demand for the recent auction of Germany’s 10-year raised the suggestion that the sovereign debt crisis has spread all the way to the eurozone ‘core’. Fidelity explains the theories on why this happened.

    This piece outlines the Fed's actions and the implications for investors.

  3. What next for the ECB?

    23 Nov 11

    Pressure is growing on the ECB to take more action to prevent the eurozone’s sovereign debt crisis from escalating. What can it do?

    This piece outlines the Fed's actions and the implications for investors.

  4. Navigating portfolios in times of crisis

    11 Nov 2011

    Periods of market stress present opportunities for investors prepared to take a longer-term view - high yield and inflation-linked bonds can both be bought cheaply in current market conditions. Within equity markets, investors should focus on high-yielding equity income opportunities.

    This piece outlines the Fed's actions and the implications for investors.

  5. Europe's grand rescue plan

    28 Oct 2011

    The highly anticipated EU crisis summit has delivered headline agreements in the three key areas: a Greek bailout, an expansion of the EFSF, and bank recapitalisations. Fidelity provides a summary of these key developments.

    This piece outlines the Fed's actions and the implications for investors.

  6. Operation Twist

    22 Sep 2011

    Markets are unconvinced that the $400 billion stimulus program announced by the US Fed (i.e. 'operation twist') will stave of a recession.

    This piece outlines the Fed's actions and the implications for investors.

  7. Volatility creates opportunity

    19 Aug 2011
    Markets fell sharply overnight and a number of factors have been blamed for this latest decline. But why are markets so volatile? This piece explores some of the reasons behind the recent volatility and whether this is a good buying opportunity.
  8. Investors must consider the total return potential of equities

    11 Aug 2011
    Many investors' believe in investing in equities for capital growth. However, one should look at equities from a total return perspective. This piece looks at the importance of reinvesting dividends and the powerful effects of compounding.
  9. Re-evaluating valuations

    10 Aug 2011
    The recent market sell-off has made equities look attractive from a valuation perspective. In general, P/E ratios have become distinctly low and dividend yields are now well above historical averages.
  10. At a glance: The US Downgrade

    7 Aug 2011
    Standard & Poor's has downgraded the US from its AAA rating to AA+ for the first time ever. This piece looks at the possible implications the downgrade will have for the US and the wider global economy.
Strategies for uncertain markets

Food for thought

Cash can be a risk
    • Holding cash may not always be the best option
    • The purchasing power of cash is eroded by inflation over time

Well-diversified portfolio smoothes out returns over time
    • Spread your money across different asset classes – cash, bonds,equities
    • Consider investing beyond your home base
    • Learn more about diversification

See the opportunity in volatility
    • Markets are volatile. Understand why
    • Volatility could present buying opportunities for investors with a longer-term horizon.
    • A regular savings plan could help smooth out the effects of volatility

Re-evaluate income investing
    • Greater focus on income-generating investments important
    • Total returns, not just capital appreciation,important for equity investing. Learn more
Our experts speak
Medha Samant, Investment Director, believes that the strong cash positions of Asian corporates could mean higher dividend payouts and increased growth through M&A activities.
November 2011




Trevor Greetham, Director of Asset Allocation,talks about the situation in Europe and his belief that a v-shaped outlook could manifest for risky assets.
November 2011