Investment trust insider on Fidelity China Special Situations – James Carthew: My China fund is up 60% in six months and has further to go
As US markets finally come off the boil, our columnist explains why he is sticking with Fidelity China Special Situations and how the £1.4bn trust makes good use of the closed-end structure.
The chaos created by Trump’s on-again, off-again tariff policies and Musk’s clumsy attempts to slash Federal spending have created an environment where US consumers and companies are wary of making long-term decisions.
Boycotts of American goods and services are growing and will not go away in a hurry. This is helping to stall the US economy and, when coupled with the unexpected rise of China’s DeepSeek as a rival to US AI companies, has been a trigger for profit taking on US stocks.
In some ways, the rout is not really that extreme. The S&P 500 is back to levels last seen in September 2024 but has still more than doubled over the past five years. The ride for investors in the Magnificent Seven has been a bit rougher over the past few weeks, but relative to the S&P 500, they are just back to where they were in November 2024.
What that means is that, even after the falls, valuations of US stocks still look stretched relative to international peers.
Unsurprisingly, most investment companies are… read more here