April 13, 2021
Andrew Marchese, CIO and Portfolio Manager, reflects on market trends through the first quarter and discusses how he is approaching the second quarter and the year ahead. As CIO, Andrew oversees the Fidelity Canada investment team, and also manages Fidelity Canadian Disciplined Equity® Fund. Andrew’s process with respect to earnings forecasts, involves looking at a company years out, and on a stock-by-stock basis. Also, Andrew shares how Fidelity analysts establish price targets for every company, accounting for earnings and other factors. Andrew is currently recycling cash from names that have already participated in market uptick to new names that haven’t yet participated and have a strong outlook as economies reopen.
Recorded on April 7, 2021.
April 12, 2021
Institutional Portfolio Manager Tom Rollins provides an update on Fidelity U.S. Growth Opportunities Class and what to look for as the vaccine rollout accelerates in the U.S. Tom works closely with portfolio manager Kyle Weaver, and explains they aim to use volatility to their advantage, and mainly search for companies with good cash flows and earnings. So as a result, it is less likely for Kyle and Tom to make big bets on lower-quality companies. Today, Tom reflects on the last year, noting the winds have changed, in that the big secular winners looked great off the market bottom, but are now expensive. Tom and host Pamela Ritchie also look at e-commerce, healthcare, inflation, and IPO (initial public offering) investing.
Recorded on April 6, 2021.
April 10, 2021
Jurrien Timmer, Fidelity’s Director of Global Macro, shares his thoughts on what’s moving the markets around the world, to help you be better prepared for what may be next. Today, Jurrien looks at U.S. jobless numbers, noting that jobless claims moved to the six millions at the start of the pandemic. It’s back down to around seven hundred thousand now, but it’s still not at pre-COVID levels. Jobless numbers and stimulus are connected, and Jurrien believes that the Fed is correct in its messaging about keeping interest rates low. Jurrien also comments on emerging markets, inflation, and the rotation towards value. Jurrien notes that a barbell strategy between value and growth is common. Follow along with Jurrien’s charts @TimmerFidelity on Twitter.
Recorded on April 5, 2021.
April 9, 2021
We welcome back Denise Chisholm, sector strategist, for another instalment of her sector watch. Denise shares that the United States is currently leading with the amount of stimulus delivered, and based on that fact, will likely lead in terms of economic growth delivered. Denise also explains that she sees U.S. small caps being dominant in market leadership, based on relative valuation and growth data. Looking at emerging markets, Denise believes emerging markets have outperformed on the margin, and the risk/reward for EM relative to the market and other regions is negative. Denise explains that she believes the risk/reward for gold and silver is still positive. Also, focusing on specific sectors, energy and financials are continued to be viewed favourably by Denise.
Recorded on April 1, 2021.
April 8, 2021
In the 16th episode of the Fidelity ETF Exchange - powered by FidelityConnects, co-hosts Étienne Joncas Bouchard and Himesh Patel sat down to recap notable trends and headlines in the Canadian ETF Industry for the first quarter of 2021. Some of the key topics discussed include the continued growth in the Multi-Asset segment, the rise in ESG ETFs, the style rotation taking place in the factor space, among others.
Recorded on March 31, 2021.
April 7, 2021
Chris Pariseault, head of fixed-income and global asset allocation institutional portfolio managers, looks at the current macroeconomic backdrop and how investors should be thinking about their fixed income allocations amid a low-yield environment. Fidelity's fixed-income solutions leverage the expertise of experienced portfolio managers who are backed by teams that specialize in a wide range of Canadian and global fixed-income asset classes. Chris and the team have been through several different market environments and have stuck to the same 5-step process: focusing on the current macro environment, looking at the specific sectors, asset allocation, security selection, and portfolio construction.
Recorded on March 30, 2021.
April 6, 2021
Portfolio Manager David Way discusses opportunities in liquid alternatives as an emerging asset class. David shares how Fidelity Long/Short Alternative Fund is designed to work at times of volatility and notes where a liquid alts strategy could fit in an investor’s portfolio. Fidelity Long/Short Alternative Fund is primarily focused on North America, which accounts for about 90% of the Fund’s holdings. David believes there is opportunity to add alpha here because of a reemergence of the commodity cycle. He notes that the Fund is for investors who are optimistic about the future. David can fully invest in his ideas for long positions. In fact, the structure of the Fund allows him to own 130% of assets in long positions: he can own 30% more of his “best” ideas, because he can also short the “worst” ideas. Currently, inflation is on everyone’s mind, and David notes that it is important to be macro aware, but he focuses on companies name by name and analyzes their risk and potential for future outperformance.
Recorded on March 31, 2021.
April 5, 2021
Charlie Hebard and Michael Kim are from the team behind Fidelity Long-Term Leaders Fund. Today they discuss the importance of identifying and assessing long-term industry leaders worldwide, and where they fit within a portfolio. Charlie and Michael explain that their criteria for stock picking follows three points. The first is competitive advantages compared to others in the industry. Second, quality in the management team. Third, industry outlook, which includes growth opportunities, tail winds, and emerging trends. Charlie expands on this criteria, explaining this fund has a growth tilt, looking at the best companies the team can find throughout the world. This strategy won’t change as Charlie and Michael have a lot of conviction for growth in the right names, as the market has been changing. Although, reflecting on their sell mandate, Charlie explains they may sell if a company is no longer worthy of the long-term leader designation, or if a position performs well and the position size becomes large enough to have too much of an impact on the fund
Recorded on March 30, 2021.
April 1, 2021
Jurrien Timmer, Director of Global Macro, guides us on what we might see ahead by sharing his perspectives on past analogs, and how they could change your portfolio positionings moving forward. Jurrien shares his findings on secular bull markets. Follow along with slides on Jurrien’s Twitter page: @TimmerFidelity. Jurrien notes that secular bull markets last about 18 years on average, so that means we have 4 or 5 years left currently. Looking at the U.S. dollar, Jurrien explains it is a bit of a crowded trade. Right now the dollar is being bid up because financial conditions are tightening, and at some point the Federal Reserve will probably convince the market they will stay accommodative, with inflation fears being ‘the boy that cried wolf’ many times.
Recorded on March 29, 2021.
March 31, 2021
Institutional Portfolio Manager Ilan Kolet is the newest member of the Global Asset Allocation team. He works closely with Geoff Stein, David Wolf, and David Tulk. On this episode of FidelityConnects, Ilan provides context and an outlook on the Canadian Economy and other countries, to help understand what it all means in terms of opportunities in the market. Ilan comments on inflation, public debt levels in Canada, and emerging markets. He also shares his thoughts on the unemployment rate globally, how it affects the market, and what this all means for Canadian investors watching financial headlines closely.
Recorded on March 26, 2021.