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By Dominic ROSSI, Chief Investment Officer, Equities at Fidelity International*
2017 was a vintage year for global equity markets, with indices delivering strong double-digit returns in dollar terms. Markets have heavily discounted future earnings growth and some stocks have been pushed up to lofty valuations. As a result, markets have essentially ‘brought forward’ or front-loaded much of 2018’s returns into 2017. By extension, 2018 looks like being a much tougher environment for equity investors to navigate. I think we will be lucky to see positive returns from equities over the next 12 months. That said, I don’t think we will see an outright bear market in stocks either as the conditions are not yet in place. Rather, we are likely to see a sustained consolidation...
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