The $4.1 trillion dollar question

With the two largest economies in the world at loggerheads, many investors and commentators are trying to figure out the end game. Alex Duffy, Portfolio Manager at Fidelity instead suggests focussing on the impacts on individual markets. 

“Specifically, when I look at China, I’m far less worried about the impact of a tariff on $400B or $500B worth of goods. Tariffs of 15-20% on $400 billion isn’t a huge delta in terms of the overall trade balance. Where it is far more relevant, is what it means for the currency.”1

Alex explain the tail risk that this creates, and some of the tools China has at its disposal to manage these risks.
 

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1 References made to currency are in US dollars.

This video is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”).  Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.

This material is intended for use by advisers and wholesale investors.  Retail investors should not rely on any information in this document without first seeking advice from their financial adviser.  Please remember past performance is not a guide to the future. You should consider the Product Disclosure Statements (“PDS”) for Fidelity Australia products before making a decision whether to acquire or hold the product. Investors should also obtain and consider the Product Disclosure Statement (“PDS”) for the fund mentioned. The relevant PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading it from our website at www.fidelity.com.au. This webcast has been prepared without taking into account your objectives, financial situation or needs. You should consider such matters before acting on the information contained in this webpage including any linked webcasts or podcasts. This webcast may include general commentary on market activity, industry or sector trends or other broad based economic or political conditions which should not be construed as investment advice.  Information stated herein about specific securities is subject to change.  Any reference to specific securities should not be construed as a recommendation to buy, sell or hold these securities.  This webcast may contain statements that are "forward-looking statements", which are based on certain assumptions of future events.  Actual events may differ from those assumed.  There can be no assurance that forward-looking statements, including any projected returns, will materialise or that actual market conditions and/or performance results will not be materially different or worse than those presented.  While the information contained in this webcast has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused.  Investments in overseas markets can be affected by currency exchange and this may affect the value of your investment. Investments in small and emerging markets can be more volatile than other more developed markets.  Fund references are correct at time of first publication but are subject to change and may not represent actual holdings in the fund at the time of this viewing. The webcast may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity’s funds is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”).

© 2018 FIL Responsible Entity (Australia) Limited.  Fidelity, Fidelity International, and the Fidelity International logo and F symbol, are trademarks of FIL Limited.

This webpage is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.

Prior to making an investment decision retail investors should seek advice from their financial adviser. Please remember past performance is not a guide to the future. You should consider the Product Disclosure Statements (“PDS”) for Fidelity products before making a decision whether to acquire or hold the product. Investors should also obtain and consider the Product Disclosure Statement (“PDS”) for the fund mentioned. The relevant PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading from our website at www.fidelity.com.au. This webcast or podcast has been prepared without taking into account your objectives, financial situation or needs. You should consider such matters before acting on the information contained in this webpage including any linked webcasts or podcasts. This webcast or podcast may include general commentary on market activity, industry or sector trends or other broad based economic or political conditions which should not be construed as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be construed as a recommendation to buy, sell or hold these securities. While the information contained in this webcast or podcast has been prepared with reasonable care no responsibility or liability is accepted for any errors or omissions or misstatements however caused. References to ($) are in Australian dollars unless stated otherwise. Investments in overseas markets can be affected by currency exchange and this may affect the value of your investment. Investments in small and emerging markets can be more volatile than other more developed markets. Fund references are correct at time of first publication but are subject to change and may not represent actual holdings in the fund at the time of this viewing. The webcast or podcast may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity funds is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). 

© 2018 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International, and the Fidelity International logo and F symbol, are trademarks of FIL Limited.

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