Andrew Marchese, Chief Investment Officer at Fidelity Canada Asset Management (FCAM), shares his outlook on Canadian and global markets for the second half of 2020. Value has underperformed growth over the past few months and years. Andrew wonders if we will see a change in leadership, but believes that the trend might only reverse with the arrival of a vaccine or treatment for COVID-19, allowing society to go back to normal, without restrictions, and making way for value to make a comeback. If this doesn’t happen, it’s possible we will only see bits and pieces of a “normal” society, with certain sectors reaping the rewards. Andrew notes that the market is looking forward to 2021 and 2022 earnings, and it is paying particularly close attention to COVID-19 treatments and economies reopening, the upcoming U.S. elections, as well as what impact corporate tax rates increasing will do to valuations.
Recorded on July 14, 2020.