What worries investors today


ALL three months, I share my thoughts on the market outlook. I love tapping into the expertise of the Fidelity investment team and bringing their perspectives together into a cohesive investment vision for the year ahead. What is most interesting is hearing from you, our customers.

The questions you ask provide a useful perspective from the front line – and what concerns you today is very clear: China, commodities and a correction.

China

There are more questions about China this time around than I can remember and a lot more on this topic than any other. After years of investors accepting the volatility of this market as the price to pay for the country’s economic miracle, doubt has set in. Is China “non-investable”, asks an investor. Is there a future in investing in China “when the government seems determined to make life difficult for investors,” said another. My colleague Ed Monk and I discuss the issues with the webcast. And there is more on this thorny topic here.

Inflation

At the top of the list of concerns, unsurprisingly, inflation, and questions are numerous on this subject. What are the best ways to hedge? Is it really transient or more grounded? Given the real possibility of stagflation, how would you structure a retirement portfolio? In the Outlook report, I touch on a new word in the investment lexicon: greenflation. How might the push towards net zero affect prices?

Merchandise

The language around natural resources may have shifted from “supercycle” to “energy crisis,” but investors remain fascinated by the ups and downs of this asset class. And rightly so. Watching the rise and fall of different commodities this year has been dizzying. A great chart in Outlook shows that oil, iron ore, and gold take very different paths to the same end point.

Correction

After the dramatic rally in the V-shaped markets of the past 18 months, sentiment has turned much more cautious. The list of investor concerns is growing and many are seeking advice on how to navigate more choppy markets and prepare for a possible downturn. “With negative sentiment for stocks and bonds, where should we invest our money now” is a fairly common cry for help. “As the market will undergo a correction, which sectors are least likely to be affected” is another.

These are the main areas of intervention. Thanks for letting us know what’s on your mind. If we want to know more, read our latest Investment Insights.

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