Andrew Marchese, CIO and portfolio manager, analyzes where equity markets are today and provides his thoughts on what might spark markets in 2021. Andrew believes fiscal policy will continue to be accommodative and could sustain the rotation from higher-multiple stocks to cheaper stocks. The Canadian market has a high proportion of materials stocks, gold stocks, oil stocks and a robust financials sector, which are all beneficiaries of a reflation trade. Andrew also notes that ESG has been one of the most topical trends for the investment team over the past year. Europe and Asia are seeing increased regulatory requirements that asset managers want to see fulfilled before they invest in particular securities. While this trend hasn’t made it to North America, he believes it could come quickly, and Fidelity has been dedicating research to ESG internally to help get ahead.
Recorded on January 6, 2021.