In its latest monthly allocation, Fidelity is positioning itself defensively in the face of central bank shock therapy. The latter, “in particular the American Federal Reserve (Fed), are determined to reduce inflation by considerably tightening financial conditions”, explains the asset manager. According to him, the extreme movements in bond yields and commodity prices since the beginning of the year will be enough in themselves to compromise global growth.
A “hard landing” is considered increasingly likely, but the valuations of the main asset classes do not yet fully reflect it.
In fact, Fidelity is underweight equities and credit.