Institutional portfolio manager Mike Hickey is an integral part of the team behind the Fidelity Insights Class, managed by one of the most well known names in the investing world - Will Danoff. Mike reflects on the year so far, and offers perspectives on how markets could react to recent pandemic news while governments kick-start their economies. Mike attributes the year-to-date performance of Fidelity Insights Class to the high-quality secular growers they owned before the market crash. Looking at health care, with aging demographic trends around the world, and governments embracing corporate health care to help in the fight against COVID-19, Will and Mike see this as an attractive sector in which they will continue to add to holdings. Also, they have held their tech stocks for several years. Mike notes that buying tech companies at high valuations is highly dependent on an investor’s time horizon; he doesn’t believe their competitive advantage is going to break down in the near term. He believes big tech will continue to drive the market, due to its size and scale. Mike also notes that we are in the early stages of an industrial revolution (cloud, massive data centres, machine learning, etc.), and that investors should focus on the long term.
Recorded on July 7, 2020.