Equities have made strong gains since the start of the year. Growing hopes of a soft landing for the global economy have buoyed riskier, growth-dependent assets. Global equities markets have returned almost 13 per cent since January.
This is a reversal of the dominant trend of 2022 in which equities were dragged lower by worries about energy prices, rising interest rates, inflation and recession. Consumer discretionary stocks, such as travel, leisure and entertainment, were especially hard hit and lost 30 per cent of their value in 2022. Tech stocks fell by almost a quarter, hammered by the prospect of sharply higher interest rates. Investor funds flowed out of equities and into the dollar, cash deposits, commodities and commodity-related stocks.
Optimism has returned this year on lower energy prices and hopes that the US and Europe will avoid recession.
Fidelity Special Values PLC (LON:FSV) aims to seek out underappreciated companies primarily listed in the UK and is an actively managed contrarian Investment Trust that thrives on volatility and uncertainty.
