Portfolio Manager David Way discusses his thoughts on inflation, current themes in the market, and how he’s finding opportunities for alpha on both the long and short side of the fund. In terms of inflation, David is looking at interest rates and inflation in two parts: the real economy and the financial economy. The reality is that interest rates and credit spreads are really low. David says the Fidelity Long/Short Alternative Fund is for those investors who are optimistic about the future. We can’t necessarily time the market he says, but we can acknowledge that in today’s market, there are many pockets of excess - and that’s exactly what he’s trying to take advantage of. In this fund, David is able to fully invest in his long ideas. The structure of the fund allows him to own 130% of assets in long stocks. The fund also allows him to overcome the fear of losing money over things we can’t control as investors.
Jurrien Timmer joins us again to explore what is influencing market expectations and reactions this week, as well as what key indicators he is watching in the first half of 2021. The trend has been large cap growth for a long time, but Jurrien sees opportunity for small caps and emerging markets in 2021. Jurrien explains what is causing the recent moves in bitcoin, gold, and the US dollar. Jurrien also looks at the Bloomberg Daily Activity Indicator throughout 2020, inflation, and liquidity. Follow along with Jurrien’s charts on Twitter: @TimmerFidelity
Recorded on January 11, 2021.
Located in Hong Kong, investment director Catherine Yeung weighs in on opportunities across equity markets in Asia-Pacific in 2021. Catherine notes that China has achieved a strong containment of the COVID-19 virus, year-to-date, and vaccinations there are showing a 75–85% efficacy rate, which, if successful, will be key for future growth in China. Stimulus efforts in China haven’t been as extensive as in other countries, and the government is actually tightening liquidity, because there is so much already in the market. From a fiscal perspective, the Chinese government’s balance sheets show that it has room to provide stimulus if it does decide to go down that path.
Recorded on January 8, 2021.
Our experts Andrew Clee, VP of ETFs, and Paul Ma, VP and Lead Portfolio Strategist, lay out the catalysts the could affect your portfolio in 2021. They say the main catalysts are the global rollout of a vaccine, ongoing political issues in the States, and factors in equity and fixed income markets. Furthermore, Paul believes we are going into an early cycle where small cap and value should outperform. He says recessions are essentially a cleansing mechanism for small caps. The ones that have survived will gain market share and thrive. As for further signs of a rotation in 2021, Andrew says you just have to look at central banks. As they pour liquidity into the market this is a very supportive indicator of equities. This is also indicative of a taper tantrum and it will be very important to see what happens in the yield curve in 2021.
Recorded on January 7, 2021.
Andrew Marchese, CIO and portfolio manager, analyzes where equity markets are today and provides his thoughts on what might spark markets in 2021. Andrew believes fiscal policy will continue to be accommodative and could sustain the rotation from higher-multiple stocks to cheaper stocks. The Canadian market has a high proportion of materials stocks, gold stocks, oil stocks and a robust financials sector, which are all beneficiaries of a reflation trade. Andrew also notes that ESG has been one of the most topical trends for the investment team over the past year. Europe and Asia are seeing increased regulatory requirements that asset managers want to see fulfilled before they invest in particular securities. While this trend hasn’t made it to North America, he believes it could come quickly, and Fidelity has been dedicating research to ESG internally to help get ahead.
Recorded on January 6, 2021.
Darren Lekkerkerker, portfolio manager of Fidelity North American Equity Class, discusses his portfolio positioning entering into 2021, where he is finding opportunities and how he is balancing U.S. and Canadian equity markets. Darren focuses on businesses that have shareholder-oriented management, resulting in Fidelity North American Equity Class offering a concentrated portfolio of high-quality companies that Darren believes are trading at reasonable valuations. Currently, Darren is bullish on Canada and on commodities, and is optimistic on 2021 as we’re presented with low rates, fiscal stimulus, and the COVID-19 vaccine.
Recorded on January 5, 2021.
Director of Global Macro, Jurrien Timmer, provides his first global macro and markets update for 2021. Jurrien takes a closer look at investors’ response to the ongoing COVID-19 crisis and other factors influencing market expectations and reactions, including the vaccine rollout, the Georgia run-off elections, and the recent bitcoin news. Jurrien reflects on 2020, and will breakdown where we’re going in this new year of trading, and what you should be keeping an eye on. As always, you can follow Jurrien on LinkedIn or Twitter (@TimmerFidelity) for more analysis.
Recorded on January 4, 2021.
Don Newman, portfolio manager, shares what initially got him into investing, discusses Fidelity’s research resources, and touches on the benefits of individual investors having a financial plan. Don’s investment process is to search for companies with strong balance sheets, but that are not so attractive that their valuations have been blown out of proportion. Don also explains how he is positioning his funds to generate income with dividend investing, and shares his outlook for markets and dividend investing in 2021. Don is Director of Research at Fidelity Investments Canada, and portfolio manager of Fidelity Dividend Plus Fund. Don also is equities sub portfolio manager on several funds, including Fidelity Dividend Fund, and Fidelity Monthly Income Fund.
Recorded on December 17, 2020.
Le gestionnaire de portefeuille Hugo Lavallée discutera avec son hôte, Charles Danis, de la façon dont il structure ses fonds pour offrir de la valeur aux investisseurs, des avantages de pouvoir compter sur les vastes ressources en recherche de Fidelity et de son processus de sélection des titres parmi toutes les entreprises qu’il rencontre. M. Lavallée se penchera sur l’incidence de COVID-19 sur le marché canadien en 2020 et exprimera ses attentes pour ce marché en 2021. M. Lavallée explique que le rendement ne dépend pas seulement des titres dans lesquels on investit, mais aussi de ceux dans lesquels on n’investit pas. Le message qu’il veut transmettre est qu’il y a toujours des titres à acheter; il suffit de prendre le temps de les trouver. Il vous expliquera dans ses mots ce qu’est un investisseur anticonformiste.
Date : 11 décembre 2020
Portfolio manager Hugo Lavallée discusses how he is positioning Fidelity Greater Canada Fund and Fidelity Canadian Opportunities Fund to add value for investors, the benefits of Fidelity’s large research resources, and how he chooses which of the many companies he meets with to invest in. Hugo shares what being a contrarian investor means to him, reflects on the impact of COVID-19 on the Canadian market in 2020, and looks ahead to his 2021 Canadian market outlook. Hugo notes that it’s not only about what you own, but what you don’t own. The message he wants to make clear is that there is always something to buy, it just takes time to find it.
Recorded on December 10, 2020.