Andrew Marchese, President and Chief Investment Officer at Fidelity Canada Asset Management, is optimistic that this unprecedented market correction, which has resulted in many securities being sold off precipitously, is an opportunity to look at companies with a clean slate and examine the true earnings power of a company relative to what has been priced into its valuation. In this episode, Andrew explains that Fidelity’s shopping list has expanded as a result of this correction, allowing for an increase in the breadth of potential for return from securities over the next few years. Andrew also reminds us that the market knows how to respond to good and bad news, but not to uncertainty. While he notes it is human nature to want to move to cash in times of volatility, doing so crystallizes losses and forces investors to make another critical decision about when to get back into the market. This leaves investors with the difficult task of trying to time the market, allowing room for poor decision making.
Recorded on March 25, 2020.