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Investing in Equities
Insights and ideas you can use to help clients understand how to invest in U.S. and international equities.
How to invest in a changing world
As the world's financial markets recover at different speeds and volatility comes and goes, investors may need to change their approach to equity investing.
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Diversify
Consider an equity mix of domestic and international to help improve returns and help reduce volatility risk.
Our research suggests that domestic and international investments should be part of investors' equity allocation in all phases of retirement planning.
- Diversification does not ensure a profit or guarantee against a loss.
- Source: Fidelity Investments. Strategic allocations as of 5/30/19.
- Investors should allocate assets based on individual risk tolerance, investment time horizon, and personal financial situation. A particular asset allocation may be achieved by using different allocations in different accounts or by using the same allocation across multiple accounts. The allocation is not intended as a benchmark for individual investors. Rather, it is a range of equity allocations that may be appropriate for many investors saving for retirement as well as those close to age 65. Investors should consider whether they anticipate retiring significantly earlier or later than age 65, and select an allocation that best meets their individual circumstances and investment goals.
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U.S. Companies Continue to Embrace Technology and Introduce Innovative Products and Services
Health Care remains in the spotlight as the rollout of COVID-19 vaccines continues. Businesses are pursuing digital transformation strategies to engage more with customers across all channels.
Drivers of innovation in the U.S.
Health Care
- COVID-19 vaccines were developed and distributed at a record pace highlighting the innovation and ingenuity of the health care sector. COVID-19 also led to the creation of new investment categories, such as testing, that are likely durable themes for the future.
- The Biotechnology industry is witnessing an unprecedented pace of breakthroughs across a wide range of diseases. For the first time ever, many novel therapies are on the cusp of providing functional cures for devastating diseases, not just treating symptoms.
- We are in the early innings of structural transformation in the largest health care market in the world–the U.S. health care economy. Winners and losers will emerge, and this pandemic is accelerating the pace of change.
Technology
- Technology firms are benefiting from increased online activity due to COVID-19 as consumers and businesses accelerate the shift to a digital experience.
- The shift of in-person experiences, such as watching a movie, shopping, or socializing, into the online world is likely to be a long-term mega-trend that persists for years–regardless of economic conditions.
- Digital businesses that generate vast amounts of data are increasingly looking to cloud computing to draw data-driven insights to improve their businesses. This is happening via cloud services being offered at all levels of the information technology stack–infrastructure, platform, and software.
Communication Services
- 5G aims to improve many existing wireless capabilities, business efficiencies, and innovation across a number of industries.
- Carriers and equipment suppliers are looking to achieve 5G targets that will enable 10-times better peak speed, throughput, latency and connection density than those experienced in 4G.
- 5G's faster and more-capable connectivity could allow for more connections, better battery life for handsets and next to no latency.
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Opportunities Exist All Over the Globe
Innovative and well-managed companies can present opportunities, even when outside the U.S.
The developed economies in Western Europe and Asia include some of the most successful companies in every industry. Emerging economies are transforming to provide some of the fastest growth outside the Silicon Valley. Opportunities are emerging and investors should be positioned to try to take advantage of them.
- 1. Based on MSCI All Country World as of 6/30/21.
- Stock markets, especially non-U.S. markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. Risks are particularly significant for investments that focus on a single country or region.
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Access a Broader Reach
Experience the Fidelity difference: an active manager with global reach.
Uncertainty is becoming all too common today. Investors need strategies for how to navigate the large universe of stocks and identify the winners and the losers. Investing in a rapidly changing world can benefit from an active management approach with a strong, global research presence.
Fidelity has over 750 investment professionals.*
Key areas of focus
Extensive Research Capabilities
- Global research teams aligned across sectors
- Investment strategies aligned by investment style, capitalization,and geographic regions
- Investment offerings driven by fundamental analysis and stock selection
- Specialty research includes a team focused on identifying corporate governance and accounting risk in companies from developed and emerging markets
Globally Integrated Investment Organization
- Core and opportunistic research provides entrepreneurial and established investment ideas
- Fidelity's physical locations span across the globe
Fundamentally Sound Portfolio Construction and Risk Management
- Security selection drives portfolio construction; risk evaluation informs the balance and composition
- Integrated risk management platform with multiple layers of oversight
*Fidelity Management & Research Company, and Fidelity Institutional Asset Management as of March 30, 2021. Data is unaudited. These figures reflect the resources of Fidelity Management & Research Company a U.S. company, and its subsidiaries. Research Professionals include both analysts and associates.
Explore Our Fund Lineup
Seek Income with dividend-paying stocks
Dividend-paying stocks historically have been more likely to deliver higher income, lower volatility, compelling risk-adjusted returns, and inflation protection during periods of rapidly rising prices.
Seek growth in the U.S. with a core, actively managed position
Given the meaningful historical relationship between stock prices and corporate earnings growth, U.S. companies could maintain a healthy rate of growth over the near-to-intermediate term.
Expand global exposure with active management
Incorporating high-quality stocks from around the globe could help protect a portfolio from secular slowdowns and amid rising rates.
Viewpoints & White Papers
- Investing involves risk, including risk of loss. You may gain or lose money over time. See individual fund pages for fund-specific risks.