Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.

EVERY three months I share my thinking on the outlook for markets. I love tapping into the expertise of Fidelity’s investment team and pulling their insights together into a coherent investment view for the year ahead. What’s most interesting is hearing from you, our customers.

The questions you ask provide a helpful view from the front line - and it’s very clear what’s front of mind today: China, Commodities and a Correction.

China

There are more questions on China this time than I can remember and far more on this topic than any other. After years in which investors have accepted this market’s volatility as the price to be paid for the country’s economic miracle, doubts have set in with a vengeance. Is China ‘uninvestable’, one investor asks. Is there a future investing in China ‘when the government appears to be set on making life difficult for investors’, another says. My colleague Ed Monk and I chat through the issues in the webcast. And there’s more on this thorny topic here.

Inflation

Top of the list of worries, unsurprisingly, is inflation, and there are plenty of questions on this theme. What are the best ways to hedge? Is it really transitory or more baked in? In light of the real possibility of stagflation, how would you structure a retirement portfolio? In the Outlook report, I address a new word in the investment lexicon - greenflation. How might the push towards net zero affect prices?

Commodities

The language around natural resources may have shifted from ‘supercycle’ to ‘energy crisis’ but investors remain fascinated by the ups and downs of this asset class. And rightly so. Watching the rise and fall of different commodities this year has been dizzying. A great chart in the Outlook shows oil, iron ore and gold taking very different paths to the same end point.

Correction

After the last 18 months’ dramatic V-shaped recovery in markets, sentiment has turned much more cautious. The list of things investors are worried about is getting longer and many are looking for guidance on how to navigate choppier markets ahead and to prepare for a possible downturn. ‘With sentiment negative for both equities and bonds, where should we invest our money now’, is a pretty common cry for help. ‘Given the market WILL suffer a correction, which sectors are less likely to be affected’, is another.

These are the main areas of focus. Thank you for letting us know what you’re thinking about. If we want to know more, read our latest Investment Outlook.

Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to a Fidelity adviser or an authorised financial adviser of your choice.

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