Fidelity fund manager invests in American stocks amid US-China trade truce

This week, Fidelity International's fund manager said she increased the share of US stocks in her portfolio, citing market optimism following the US-China trade truce.

Taoshi Wang, the firm's Hong Kong-based asset manager, said the deal solved two important problems at once. The agreement resolved the cost of living crisis in the United States and strengthened investors' appetite for risk. Wang believes easing restrictions on exporting semiconductors from the US will boost interest in American tech companies among traders.

Wang also reduced her positions in European stocks this week on expectations of a reversal of cash flows back to the United States.

Wang's change in strategy emphasizes that investors are starting to show renewed interest in US securities. Their confidence is recovering after fears of a US recession have prompted traders to sell risk assets worldwide. Consequently, Goldman Sachs strategists raised their three-month target on US stocks’ prices. Wang forecasts that, if the market environment remains favorable by the end of the year, the S&P 500 could reach an all-time high.