- Global equity markets are “climbing a wall of worry”, in spite of uncertainty about the potential exit by Greece from the Eurozone and geopolitical events in the Ukraine, in the Middle-East and in Latin America.
- Quantitative easing by the European Central Bank and the Bank of Japan can lead to inflation of financial assets in 2015
- Low interest rates and much reduced energy costs have started to fuel a new boom in consumer spending in the U. S.
- The best growth strategy this year may be to diversify between market-leading sectors and emerging investment areas (source: FidelitySignal.com)
Broad market indexes, such as the S&P 500, the Dow Industrial Average and the Nasdaq, are making higher highs again after a treacherously volatile two-month period starting in early December. The good news is that investors have not shied away from risk-on investments, which is very bullish.
The FidelitySignal Aggressive Growth model portfolio can provide an example of how an aggressive asset allocation strategy can work in the current market environment. The asset allocation mix of the portfolio consists of five Fidelity mutual funds. The funds represent investments in both leading sectors and emerging investment areas:
The FidelitySignal Aggressive Growth model portfolio currently holds positions in market-leading sectors, such as medical delivery, construction and housing, and consumer staples:
One of the exiting new investment opportunities is materials/chemicals. This sector should continue to benefit from low oil prices and increased demand:
Southeast Asian economies with strong ties to the Euro market can be great beneficiaries of improved condition in the Euro zone:
Additional investment strategies are available at FidelitySignal.com