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Equities fare well in lead-up to economic slowdown: Fidelity head

There's no reason for investors to exit equities even though there's the possibility of a US recession.

The long-run forward price earnings (PE) multiples for the US and Europe, based on the S&P500 and Eurostoxx 50 respectively, are below equilibrium PEs.

A RECESSION in the US may be on the the cards based on a flattening US Treasuries yield curve, says David Buckle, Fidelity head of investment solution design.

But that doesn't mean investors should exit equities. "A yield curve this flat is a strong signal of a period of economic weakness...

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