The Fidelity multi-asset team has adopted a defensive stance across its portfolios in anticipation of a recession in 2019, potentially fuelled by problems in Italy.
At a briefing last week, Fidelity's global economist Anna Stupnytska said she expected global growth to remain sluggish in 2019 driven by tightening financial conditions globally and a slowdown in China, posing a recession risk. Stupnytska's comments follow a bout of increased market volatility in recent weeks prompting debate over the potential end of the ten-year bull run - the longest in US history. "There are tighter financial conditions; the Federal Reserve is ahead of the cycle and is unwinding the balance sheet and the effects of this are uncertain. These tighter financial cond...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
