Latest news with #midcapStocks
Yahoo
13 hours ago
- Business
- Yahoo
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
(Bloomberg) -- Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago. 'The worst of the shock is behind us with Liberation Day,' said Efstathopoulos, referring to the April 2 US tariff announcement that triggered a global equity rout. 'The numbers that were recorded on that day were the worst it can get.' Fidelity is maintaining its conviction even as investors gear up for the end of the 90-day tariff truce on July 8, when reciprocal levies will take effect if nations fail to reach a trade deal with the US. Tensions in the Middle East may also pose a major test for stock markets, with Trump to decide within two weeks whether to strike Iran as the conflict with Israel escalates. For now, many of Efstathopoulos' bets have paid off, and he's convinced they remain a buy. The MSCI Japan Mid Cap Index has gained more than 4% since April 2, while Germany's DAX Mid-Cap gauge has risen almost 6%. A similar index of Chinese stocks advanced about 0.5% during that period. The money manager has had some exposure to Chinese and Japanese stocks since the second half of last year, while it scooped up German midcaps in March shortly after the government announced a historic spending package. 'In a world of trade disruption, disruption of globalization, I think it makes sense to focus on more domestic revenue generation,' said Efstathopoulos, who oversees about $3 billion from Singapore. German equities should advance because they're poised to benefit from a landmark shift toward more fiscal spending and concentrated exposure to domestic demand, he said. Meanwhile, Japan is undergoing a once-in-a-generation shift with 'good inflation' rippling across the economy, and mid-sized companies are likely to benefit most from rising domestic consumption, said Efstathopoulos. Fidelity likes Chinese firms due to prospects of further fiscal stimulus and limited risk of losses, thanks in part to factors like state-backed investors swooping into markets to prop up stock prices. Efstathopoulos helps oversee Fidelity's global multi-asset growth and income fund that's returned a cumulative 11% over the past five years to May, according to a company factsheet. RBI's Liquidity Boost to Propel Indian Small Caps: Taking Stock Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Business
- Yahoo
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
(Bloomberg) -- Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Security Concerns Hit Some of the World's 'Most Livable Cities' JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown NYC Congestion Toll Cuts Manhattan Gridlock by 25%, RPA Reports How E-Scooters Conquered (Most of) Europe Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago. 'The worst of the shock is behind us with Liberation Day,' said Efstathopoulos, referring to the April 2 US tariff announcement that triggered a global equity rout. 'The numbers that were recorded on that day were the worst it can get.' Fidelity is maintaining its conviction even as investors gear up for the end of the 90-day tariff truce on July 8, when reciprocal levies will take effect if nations fail to reach a trade deal with the US. Tensions in the Middle East may also pose a major test for stock markets, with Trump to decide within two weeks whether to strike Iran as the conflict with Israel escalates. For now, many of Efstathopoulos' bets have paid off, and he's convinced they remain a buy. The MSCI Japan Mid Cap Index has gained more than 4% since April 2, while Germany's DAX Mid-Cap gauge has risen almost 6%. A similar index of Chinese stocks advanced about 0.5% during that period. The money manager has had some exposure to Chinese and Japanese stocks since the second half of last year, while it scooped up German midcaps in March shortly after the government announced a historic spending package. 'In a world of trade disruption, disruption of globalization, I think it makes sense to focus on more domestic revenue generation,' said Efstathopoulos, who oversees about $3 billion from Singapore. German equities should advance because they're poised to benefit from a landmark shift toward more fiscal spending and concentrated exposure to domestic demand, he said. Meanwhile, Japan is undergoing a once-in-a-generation shift with 'good inflation' rippling across the economy, and mid-sized companies are likely to benefit most from rising domestic consumption, said Efstathopoulos. Fidelity likes Chinese firms due to prospects of further fiscal stimulus and limited risk of losses, thanks in part to factors like state-backed investors swooping into markets to prop up stock prices. Efstathopoulos helps oversee Fidelity's global multi-asset growth and income fund that's returned a cumulative 11% over the past five years to May, according to a company factsheet. RBI's Liquidity Boost to Propel Indian Small Caps: Taking Stock Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Is Mark Cuban the Loudmouth Billionaire that Democrats Need for 2028? The US Has More Copper Than China But No Way to Refine All of It Can 'MAMUWT' Be to Musk What 'TACO' Is to Trump? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
13 hours ago
- Business
- Bloomberg
Fidelity Fund Bets on Midcaps Saying Worst of Tariffs Is Over
Financial markets have seen the worst of Donald Trump's tariff threats, helping make midcap stocks an attractive buy as the outlook improves, according to a Fidelity International money manager. Japan, Germany and China midcaps account for about 11% of Fidelity's growth and income fund — making them some of the strategy's highest conviction trades, said George Efstathopoulos. In contrast, there was 'very limited exposure' to such stocks about 18 months ago.
