Series
Capital Markets Update
Explore the current economic themes that are driving global financial markets in this market outlook from the FI Capital Markets Strategy Group.
Created with advisors and wealth managers in mind, the Capital Markets Update brings together the views of research teams and asset class specialists from across Fidelity. Produced by the Capital Markets Strategy Group at Fidelity Institutional, this investing outlook is supported by market data and in-depth economic analysis.
You can browse a selection of our insights below. Investment professionals can log in to view the full report, including actionable outlooks and key themes for a range of traditional and alternative asset classes.
Q3 2026 market outlook and positioning
A brief summary of insights from the full report
Last updated: 8/11/2026
Rational optimism: Separating the signal from the noise
- The Capital Market Strategy Group’s outlook is optimistic yet realistic. The global economy remains in a solid expansion as countries continue to face a range of fiscal, monetary, and geopolitical crosscurrents.
- While headwinds such as geopolitical uncertainty, rate volatility, elevated AI expectations, and higher global long-term yields persist, many may prove short-lived.
- At the same time, tailwinds including a mid-cycle economy, robust corporate earnings, a stable labor market, expanding consumer spending, and healthy equity and credit markets may prove more durable.
Investing ideas
- Intermediate duration bonds
- Balanced domestic equities
- International diversification
- Small and mid-capitalization
Get all of our current asset class views in one place, plus charts that show the data and analysis supporting our outlook.
More insights from the FI Capital Markets and Asset Class Specialist teams
View all
Meet the FI Capital Markets and Asset Class Specialist teams
The FI Capital Markets Strategy Group synthesizes economic analysis and market outlooks from across Fidelity to provide timely, actionable perspectives for financial advisors and institutional investors. Our Asset Class Specialist team offers in-depth analysis and positioning views focused on equity, fixed income, and alternative investments, including a range of ETF offerings.
Provides current themes and views of the Capital Markets Specialist Group within Fidelity Institutional, as of 3/31/26. Individual views or outlooks may differ. Views are not intended to be substitutes for strategic asset allocation and reflect market views based on current economic conditions. Diversification does not ensure a profit or guarantee against a loss. The statements and opinions are subject to change at any time, based on market and other conditions. Terms: MBS: mortgage- backed securities, CLO: collateralized loan obligations, UMM: upper middle market, NOI: net operating income, LME: liability management exercises