As investors brace for the possibility of a second wave of coronavirus infections and a slowed global recovery, portfolio manager Ayesha Akbar shares her market outlook. Ayesha, portfolio manager of Fidelity Global Asset Allocation Fund, keeps to a neutral allocation that has a heavier weighting in equities (65% equities, 30% fixed income and 5% cash). Ayesha addresses the trends she is seeing and how she is allocating in global asset classes amidst volatile markets. One trend is that she doesn’t think value stocks have been a great area to invest in over the past ten years, and has preferred growth stocks. For value to outperform, the yield curve would need to steepen again, and yield curve controls will be needed (something we may in fact see the Federal Reserve apply in the U.S.). Nevertheless, she does think it is good to have some value exposure in a portfolio as a means of diversification.
Recorded on June 24, 2020.