Fidelity Investments
The latest research and outlooks in the ProAllocate library
- Portfolio Construction
The investment implications of unsustainable sovereign debt in a higher-rate world
Fidelity's Kana Norimoto, Jacob Weinstein and Irina Tytell argue that unsustainable sovereign debt and financial repression will weaken stock-bond diversification, requiring portfolios to add real assets, alternatives and active management. They conclude growth alone, including AI-driven productivity, cannot resolve the debt burden, making fiscal policy a central market driver.
- Fixed Income
The asymmetric potential for bonds
Fidelity's FI Capital Markets Strategy Group argues higher starting bond yields create an asymmetric risk/reward: modest gains if rates rise, double-digit returns if rates fall, reducing need for precise rate calls.
- Equities
Q4 2026 Quarterly Sector and Investment Research Update
Fidelity's Denise Chisholm argues the Fed funds rate looks low relative to GDP growth and crowded Treasury short positions point to falling yields, favoring overweight tech, financials and other offensive sectors while flagging stretched emerging-market tech valuations.
- Fixed Income
Convertible securities: An evolving opportunity within MAI strategies
Fidelity argues that convertible securities are becoming a meaningful source of return and diversification within multi-asset income strategies, as AI-related issuance broadens the market. Their hybrid equity-bond structure offers upside participation with downside support, rewarding active security selection.
- Wealth Management
What every wealth manager should know about wealthy next-gen investors
Fidelity's 2026 Investor Insights Study finds wealthy Gen Y and Z investors favour digital engagement, collaboration and alternative assets, with 81% likely to leave their parents' advisor. Fidelity argues wealth managers must adapt engagement models to retain these inheriting clients.
- Wealth Management
Fidelity’s Annual Portfolio Construction Study: Tools to time savings
Fidelity's survey finds portfolio construction tools save advisors about six hours weekly, yet fewer than half apply them consistently across client portfolios. Fidelity recommends better segmentation, stress testing and disciplined reviews to close this adoption gap.
- Fixed Income
Should you be concerned about the yield curve right now?
Fidelity's FI Capital Markets Strategy Group argues that the recent Treasury curve flattening reflects strong growth, contained inflation expectations and healthy earnings rather than recession risk. Equities remain supported unless the curve moves toward sustained inversion.
- Macro
Fourth Quarter 2026 Quarterly Business Cycle Update
Fidelity's business cycle analysis finds the US and global economy in mid-cycle expansion with earnings optimism, but flags labor shortages, inflation risk and stretched US valuations. It favours diversification into fixed income, inflation-resistant assets and non-US equities and currencies.
- Pensions
Strategic asset allocation for retirement-focused investors: Fidelity’s research-driven approach to target date funds
Fidelity's target date team explains how it builds glide paths by combining participant research on savings, spending and behavior with capital-market regime analysis and asset/liability frameworks. The approach balances wealth maximization, shortfall and drawdown aversion to set diversified strategic equity/bond allocations across the retirement life cycle.