Fidelity: Bullish on US mid-caps, gold price correction presents buying opportunity

Fidelity International's Global Multi-Asset Investment Management Head Matthew Quaife said at a press conference that he is bullish on US stocks, especially mid-caps, expecting the US economic base scenario to shift from "soft landing" to "inflation rebound" and from an economy that supports the global economy with strong growth to a protectionist economy that focuses on domestic development. On the gold price, he believes the recent correction is a good entry point, but when investors will buy gold again depends on the central bank's attitude towards inflation if it returns.

Matthew Quaife said that if the US Federal Reserve turns to an interest rate hike cycle in response to inflation shocks, the US will face the risk of economic downturn again. The current market expects the terminal rate of the easing cycle to be higher than before the election, but Fidelity expects the easing cycle to continue until 2025, until any major changes such as tariff and immigration policies or clearer fiscal policy expansion.

Regarding the upcoming Central Economic Work Conference and China's GDP growth forecast next year, Matthew Quaife said that Fidelity has not made any estimates. However, Fidelity International Fund Manager Jochen Breuer believes that the Chinese market is still full of opportunities as more stimulus measures are expected to be introduced to cope with the potential tariff threat from the US.

Moreover, Jochen Breuer said that the trend of capital allocation in China and South Korea through increasing dividends and stock repurchases is growing, providing opportunities for investors. The overall progress of the South Korean value-added plan is slow, but the shareholder returns of multiple portfolios have been continuously improving.

Fidelity International Fund Manager James Durance said that the divergence of central bank policies and the narrowing of credit spreads are conducive to investors adopting a global fixed-income investment strategy that is not limited by reference indicators, namely flexibly combining investment in corporate bonds and government bonds denominated in various currencies and investment-grade bonds, high-yield bonds, and emerging market bonds of various maturities.