Fidelity International anticipates a favourable environment for risk assets leading into 2026, underpinned by robust growth and accommodative policies across numerous markets. However, the firm cautions that profound structural shifts may significantly alter investment dynamics in the longer term. Fidelity International is a global asset manager providing investment solutions and retirement expertise. The company helps clients around the world achieve their financial goals.
Matthew Quaife, global head of multi-asset at Fidelity, acknowledged positive drivers in the medium term but highlighted a more intricate long-term outlook. He pointed to a growing global fragmentation following years of globalisation and debt accumulation. Quaife noted the United States’ actions as a manifestation of these structural shifts, accelerating a global splintering into regional blocs.
Quaife further suggested an intentional weakening of the US dollar accompanying this fragmentation. He stated that the dollar’s value is now a strategic policy tool, anticipating a decline in its value over the coming years, particularly as debates surrounding Federal Reserve independence intensify. These changes necessitate investors to rethink their approach to holding US dollar risk.
Looking ahead to 2026, Fidelity expects increased geopolitical volatility. Gold is expected to offer some protection in this environment, while the euro is becoming more appealing, especially as the Federal Reserve faces pressure to cut interest rates more than warranted. Fidelity anticipates US equities will continue to benefit from investment in artificial intelligence but emphasises the need for diversification into Europe, Asia and alternative assets amid inflation and geopolitical risk.
