Fidelity International

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International


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Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers - to help our clients build better futures for themselves and generations to come.

Expertise

The damaging effects of overconfidence

Fidelity International

In a world of uncertainty in which our brains are often subconsciously working against us, it’s a good practice to regularly challenge our investment views. “Am I being overconfident in my beliefs about the future?” “Am I being overly optimistic about the prospects of certain assets based on recent experience?”... Show More

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This may be as good as it gets

Fidelity International

At the turn of the year, we ask our analysts how companies see the year ahead, and how they are positioning their businesses for what they think is coming. Our Analyst Survey is a barometer of executives’ plans and their fears; of companies’ resilience and their growth ambitions; and of... Show More

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Ten quotes on volatility from the masters of the market

Fidelity International

In light of the notable market volatility this week, it is timely to review what the masters of the market have said on the subject. These quotes from some of the most successful investors illustrate how investing in stock markets can be a challenging yet rewarding venture, requiring strong research... Show More

A key decision for investors in 2018

Fidelity International

This cartoon represents all of us trying to call a top in the equity market. There are of course three possible outcomes in that endeavour: too early, too late or just right. Some of us may be lucky and get it just right, but for financial planning purposes it’s best... Show More

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Outlook 2018: Where to for emerging markets?

Fidelity International

2017 was a robust year for Emerging Market (EM) equities with the continuation of a number of appreciating trends which commenced early in 2016. Broad drivers of the market included: Show More

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Q4 Investment Outlook: Braver for longer…

Fidelity International

How long can the good times roll? The second-longest yet arguably most-hated bull market in post-war history just grinds on and on, while investors get more worried by the day. Valuations in some areas are certainly becoming stretched, but overall they remain some way off the peaks seen in 2000.... Show More

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Are markets running on borrowed time?

Fidelity International

In light of the new high for Nasdaq and general market strength, I thought I’d revisit an old list of market peak signals. Surprisingly few of them are flashing red at the moment. Show More

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3 reasons for caution with this bull market

Fidelity International

The post-financial crisis bear market bottomed out a long time ago, in March 2009; it is only natural that investors should be asking how much longer the bull can keep running. I think there are three main reasons to be concerned. Here we dig into these, before looking at reasons... Show More

Has it ever been so risky to be safe?

Fidelity International

In his recent investment letter, ‘There They Go Again…Again’, the legendary investor Howard Marks sounds a note of caution about the level of asset prices right across the spectrum, from equites to high yield notes and emerging market debt. He describes an environment where “pro-risk behaviour is commonplace.” Show More

A homegrown global success story

Fidelity International

James Abela, Portfolio Manager of our Future Leaders Fund, explains what he looks for in Australian companies looking to grow offshore. He then provides a specific example of a company he thinks possesses all the traits he is looking for. Show More

Skepticism increasing around IPOs

Fidelity International

As the IPO market continues to soften, James Abela, Portfolio Manager for our Future Leaders Fund, looks at how small cap managers are redefining their approach for a market that often looks “too good to be true”. Show More

The best (and worst) outlook for equity markets

Fidelity International

Bull markets are born on pessimism and die on euphoria. By that yardstick, the current bull market - already one of the longest on record – may have further to go. Many investors remain cautious and uncommitted; this has been one of the most miserable and loathed bull markets in... Show More

The opportunity of the century?

Fidelity International

Gree Electric, Zhejiang Supor Cookware, Fuyao Glass. If you know much about any of these three companies, I take my hat off to you. Gree is the market leader in air conditioning in China. Zhejiang is the country’s largest manufacturer of pressure cookers, blenders and other small kitchen appliances. Fuyao... Show More

Amazon is proof active investing is fit and well

Fidelity International

It is 20 years last Friday since the stock market flotation of Amazon. Quite rightly, this anniversary has focused attention on the remarkable story of how an online bookseller revolutionised retail. In two decades its sales have grown from $16m to $136bn. The company is now valued at nearly twice... Show More

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The Nasdaq: Will history repeat or will it rhyme?

Fidelity International

There aren’t many advantages to being the wrong side of 50. One very clear benefit for investors of a certain age, however, is the fact that, whatever the market turns up, you’ve already seen something similar. My two charts this week are a perfect visual representation of Mark Twain’s famous... Show More

Time to look further afield

Fidelity International

As we close out the first quarter of 2017, financial markets have once again shown their capacity to wrong-foot investors. During the first three months of the year, contrary to conventional wisdom, the top-performing stock markets have not been in the US, not even in a resurgent Europe, but in... Show More

The Recovery is real

Fidelity International

Evidence from Fidelity’s 2017 Analyst Survey suggests that the global reflation/recovery is in full swing. Demand, capex expectations, and consumer sentiment are picking up, while the first signs of inflation in prices and wages are beginning to show up. Fidelity’s Analyst Survey draws on the 17,000 meetings our analysts conduct... Show More

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Don’t bet against China in the long run

Fidelity International

Whose market is the better bet over the next two decades: China or the US? Until I looked, I would probably have said Wall Street. It’s human nature to over-weight recent data and, as last week’s new all-time high for the Dow Jones index confirmed, the US has led the... Show More

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What Peter Lynch taught me about Facebook

Fidelity International

One of my earliest (and fondest) memories of my time at Fidelity is the new analyst induction program. During my first year, in 2004, some 35 of us new joiners congregated in Boston for training and to meet some of the most senior portfolio managers. The highlight for me was... Show More

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The only macro factor that matters this year

Fidelity International

Nobody likes the middle seat. Recently on one of my flights with British Airways, I had the pleasure of having that seat. As a long-only portfolio manager one always looks for patterns, analogies and silver linings! Show More

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Joshua - many thanks for your comment. I would agree with you that Peter did focus a lot on earnings growth and as you accurately highlight Facebook is growing faster than Apple. However Peter was also very disciplined around the price paid VS value received and used to talk to us a lot about trying to find value where others were not looking - Chrysler's turnaround which he has also covered in his books, used to be one of his favourite examples. As regards fast growers Peter believed in looking for those which had the potential to 10 bag on him (to compensate for the risk that a number of them do flame out). Facebook is a fast grower (and as you would note we have been loyal investors since IPO and from the lows it is up nearly 7x). however for it to even 3x from here would make it one of the first trillion$ market cap stocks out there (and incidentally approximating to Australia's 2016 GDP of $1.27 trillion). The market share, revenues, earnings and cash flow all that would imply seem a bit far fetched based on what we know today espeically in light of a more unfavourable regulatory regime which I foresee. On Apple, as an aside, I find it interesting that recently a great value investor like Warren Buffet has also disclosed it as one of his top holdings. I hope the above helps in giving some context of my thoughts

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