LONDON, Oct 16 (Reuters) - The outlook for U.S. equities remains strong despite a worldwide stock market sell-off over the last two weeks, due to the underlying strength of the U.S. economy, said Fidelity fund manager Dominic Rossi on Thursday.
“I think this sell-off is going to prove to be a mid-market correction,” said Rossi, global chief investment officer for equities at Fidelity Worldwide Investment, on a conference call.
“I‘m looking to buy markets at current levels, particularly U.S. securities,” added Rossi.
Rossi expected U.S. stock markets to beat their 2014 highs next year, and for the U.S. equity market to offer double-digit returns in 2015.
Rossi said developed economy stock markets would outperform emerging markets’ equities, although he added that European equities were “stuck in the middle.”
However, Rossi said a fall in the euro, oil prices and European stock market valuations would prop up European equities over the next year.
“At these levels, I‘m not nearly as pessimistic about European markets as I was a few months ago.” (Reporting by Sudip Kar-Gupta; Editing by Lionel Laurent)