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What does the reopening trade mean for global asset allocation? - Ayesha Akbar

July 6, 2021

From the prospect of rising inflation to an uneven economic recovery, Ayesha Akbar, portfolio manager, shares her perspectives on global asset allocation in today’s market environment. Rising inflation and an uneven global economic recovery have exposed the disparities between wealthier countries and many emerging markets. Ayesha shares her insights on these topics and what she sees as the biggest risk for the markets six months into the year. Ayesha co-manages Fidelity Global Asset Allocation Fund. She believes that markets are worried that the Fed isn’t going to raise rates any time soon. Markets performed well during vaccine news, and since then, we have seen a consolidation phase. Communities that are lacking vaccinations are still suffering and lagging behind developed areas. She shares that economic restrictions have come back in many Asian countries with the lack of vaccinations, and consumer spending has slowed. Additionally, she discusses how she is currently positioned, noting that she has added a bit back to bond positions and is cautious of emerging markets. She also shares her thoughts on zero-interest bonds and discusses the possibility of growth stocks making a return.

Recorded on June 24, 2021.