A comment from Fidelity Worldwide Investment putting current market volatility into context

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

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