Portfolio manager Ramona Persaud divides the last four months into three phases. The first phase - before we knew there was a crisis - started back in January when, through the extensive research of Fidelity’s analysts, she was able to sense the possibility of a global pandemic before it developed fully. During the second phase, which Ramona calls the “re-risk” period, it was an incredible time to be an investor. It was a time to “go hard” and buy as much cyclicality as a portfolio could handle, because valuations were on an investor’s side. The third phase, which we are currently making our way through, is a rapid rerating, a tug of war between a great bull case and a great bear case. Phases three returns us to a market that oscillates between hope and fear. Contending with rolling dislocations, investors must be nimble so as not to miss buying or selling opportunities.
Recorded on May 14, 2020.