Fidelity International
The latest research and outlooks in the ProAllocate library
- Equities
Looking beyond China’s headline recovery
Despite China's weak macro backdrop, bottom-up stock-pickers can find value in internet firms, globally expanding businesses, innovative healthcare and consumer companies benefiting from supply discipline. Rising market dispersion and stretched valuations in AI-related stocks reinforce the case for selective, valuation-aware investing over broad market exposure.
- Emerging Markets
How short selling can add value in emerging markets
Fidelity argues that short selling has materially boosted returns in its FAST Emerging Markets Fund and Fidelity Emerging Markets Ltd, enabling pair trades and leverage against AI disruption and Chinese competition. The firm maintains a diversified 70-80 stock short book while staying structurally positive on emerging market equities.
- Macro
US midterm elections: What a Democratic sweep means for the economic outlook
A Democratic sweep in the US midterms strengthens Congress's hand on spending but leaves Trump's executive authority over trade, immigration and foreign policy largely intact. The bigger macro risk may be state-level Democratic governors curbing data-centre permits, threatening the AI capex build-out.
- Equities
Unlocking equity income opportunities in a concentrated market
Fidelity International argues today's equity markets are unusually concentrated by geography, style and economic sensitivity, undermining assumed diversification benefits. It advocates valuation discipline, resilient cash generation and dividend income to build less theme-dependent global equity portfolios.
- Thematics
Near-term risks rise even though AI cycle remains intact
The piece argues that recent AI-driven market volatility reflects investors reassessing returns on massive hyperscaler capex rather than a breakdown in the underlying AI cycle. It maintains a neutral equity stance and favours high yield credit while cautioning against extending duration amid persistent inflation and rate uncertainty.
- Macro
Skipping to two more hikes
The Federal Reserve held rates steady but signalled a hawkish bias, with two dissenting votes favouring hikes; the author expects two more increases, in December and March, as AI-driven growth pushes inflation higher.
- Macro
Skipping to two more hikes
The Fed held rates at 3.75-4%, but hawkish dissent and tightening labour markets signal more hikes ahead. The analysis forecasts two further increases by March, as AI-driven growth pushes inflation toward 3.4% by end-2026.
- Thematics
Field Notes: What’s next in China’s robotics revolution?
A China-focused field report argues that despite hardware advances and surging global shipment share, humanoid robots remain unreliable and lack the 'brain' needed for autonomous operation. Commercial adoption is likely within a few years, first in factories and warehouses rather than consumer settings.
- Thematics
Field Notes: What’s next in China’s robotics revolution?
An asset manager's on-the-ground China trip finds humanoid robotics shifting from entertainment to practical tasks, but reliability, scarce training data and crowded competition mean true commercialisation remains years away, starting in factories and warehouses.