Portfolio manager Max Lemieux provides a sector update as Canadian investors look for signs of a sustained economic recovery. Max manages Fidelity True North Fund, and searches for opportunities in every sector. He notes that it has been interesting to look for businesses that have seen their growth accelerated by the virus. Prior to COVID-19, Max had 5% of his portfolio in cash, and he used it to buy quality companies throughout the volatility. Over the past couple of months, he has been gradually selling off his defensive positions and adding to holdings in names that could benefit from the recovery. On July 8, the Canadian federal government released a report predicting a historic $343 billion deficit for 2020–2021. The last time this high a level of deficit was seen was in the 1940s; Max believes most countries around the world will also be facing these high levels.
Recorded on July 9, 2020.