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.
  1. 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.

    Total allocation toEQUITIES90%51%34%Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.ACCUMULATIONAT RETIREMENTIN RETIREMENTAGEAGEAGE456575
  2. U.S. Companies Continue to Embrace Technology and Introduce Innovative Products and Services

    Health Care remains in the spotlight as innovation continues in the development of testing and treatments for COVID-19. Businesses are pursuing digital transformation strategies to engage more with consumers who are increasing their online activity.
    Drivers of innovation in the U.S.
    Health Care
    • Efforts to combat COVID-19 have proceeded mainly along two paths, with some companies attempting to develop a vaccine that will prevent contracting the disease, and others focusing on treatments for those who already have come down with symptoms.
    • 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.
  3. 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.

    Demographic DriversInternet EvolutionGlobal LeadersEUROPE, MIDDLE EAST, AFRICALATIN AMERICAASIA EX-JAPANJAPANAroundof publicly-tradedcompanies are locatedinternationally1Luxury retailFoodBuilding relatedOnline consumersDigital mediaRetailers succeeding onlineClassifiedsHealth care solutionsDiabetesEyecareOncologyGenericsEducationHealth careTechnology supply chainConstruction productsAuto supply chainFactory automationBusiness technologysolutionChatOncologyHospital suppliesMedical technologyLocal leaders in:Social networksShoppingMiddle-class growth fuels:Health careMortgages/financial productsInsuranceConsumption productsGenerics75%
  4. 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

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.

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