As Canada and the U.S. anticipate a return to pre-COVID business activity, Darren Lekkerkerker, portfolio manager, shares his perspectives on valuations, what the markets may have priced in and where he is seeing opportunities and strong fundamentals. Darren manages Fidelity North American Equity Class, and focuses solely on high-quality businesses. There’s been much discussion centred around the market’s rotation to value lately. Darren adds that cyclical and commodities provide opportunity since they are relatively inexpensive but still have a lot of earnings growth. Two commodities that he finds particularly attractive are agriculture stocks and copper producers. Darren believes that copper is a “green metal” as it is less cyclical and more secular. Darren also notes that he is bullish on Canada and the U.S. since they have a lot of built-up savings from the pandemic. Additionally, he shares his views on data and technology, as well as labour and wages.
Recorded on June 9, 2021.