FXstreet.com (Barcelona) - Fidelity Worldwide Investment
believes that there are compelling investment opportunities to be
found in 2013, and despite looming sovereign debt issues and the
uncertain economic backdrop, this could be the year that equities
make a come back.
Jeremy Podger, Manager of Fidelity Global Special Situations
believes, "Equity valuations appear increasingly attractive after
another year of falling Government bond yields and tightening
corporate bond spreads." Amit Lodha, Manager of FF Global Real
Assets Securities Fund and Fidelity Global Focus adds: "We continue
to see long-term growth opportunities in the global equity
landscape resulting from the urbanisation and industrialisation of
emerging markets as well as the opportunities presented by the
growth of e-commerce, rapidly evolving demographic shifts and
innovation aimed at increasing capital efficiency."
However, despite this optimism, both Podger and Lodha are concerned
about the impact sovereign debt issues will have on economic
growth. Podger states, "Whilst there are attractive investment
opportunities in Europe, mostly among strong global companies, I
would expect the prospect of selective sovereign debt restructuring
to come back on the agenda sometime soon and for this to have a
negative effect on European markets and financial stocks in
particular."
Adrian Brass, Manager of FF American Fund and Fidelity American
Special Situations also urges caution about looming sovereign debt
issues in the US. He says: "Beyond a resolution, the problem of US
Government indebtedness will remain an acute problem and the need
to raise taxes and cut spending is likely to hold back economic
growth for years to come."
Lodha concludes: "In an environment where inflation is part of the
solution, equities continue to look attractive relative to most
other asset classes and equities backed by real assets, which
cannot be printed on a printing press, even more so. From an
investor's perspective, wealth generation and protection will be a
function of finding companies that have either the pricing power or
uniqueness of assets to grow earnings, cash flows and dividends in
this environment."