Volatility has been unusually well anchored over the last 2 years. Occasional spikes are ‘normal’. Concerns about Eurozone and China growth combined with Fed tightening are causing the current spike in volatility.
The US economic outlook remains favourable despite jitters over the interest rate outlook.
“In terms of the longer-term market cycle, we remain in a bull market which I think has another couple of years to run. The economy and market is mid-cycle and a mid-cycle correction would offer an opportunity for investors to get into the market at reduced valuations.” Dominic Rossi, Global Chief Investment Officer – Equities
This information is for Investment Professionals only and should not be relied upon by private investors. It must not be reproduced or circulated without prior permission.This communication is not directed at, and must not be acted upon by persons inside the United States and is otherwise only directed at persons residing in jurisdictions where the relevant funds are authorised for distribution or where no such authorisation is required. Fidelity/Fidelity Worldwide Investment means FIL Limited and its subsidiary companies. Unless otherwise stated, all views are those of Fidelity. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and F symbol are trademarks of FIL Limited. Fidelity only offers information on products and services and does not provide investment advice based on an individual's circumstances. Issued by FIL Investments International (FCA registered number 122170) a firm authorised and regulated by the Financial Conduct Authority, FIL (Luxembourg) S.A., authorised and supervised by the CSSF (Commission de Surveillance du Secteur Financier) and FIL Investment Switzerland AG, authorised and supervised by the Swiss Financial Market Supervisory Authority FINMA.