FidelityConnects

From value to momentum: second-half factors at play – Bobby Barnes

June 17, 2021

Much of the world economy is undoubtedly in a reopening phase, making it an exciting time to be an investor.  In today's episode, we welcome Fidelity's head of Quantitative Index Solutions and former NASA engineer Bobby Barnes to weigh in on factor investing, value, momentum, and inflation.  Bobby believes that with the Covid shutdown and reopening, there are three pillars driving stock performance: changes in mind share, time share, and wallet share.  He notes that with the reopening, you now have competition for your time, mind share and your wallet.  Bobby discusses how commodities can be used as a tool in an inflationary period.  He says for Canadian investors; it would be better to play it regionally, meaning if you are just overweight in Canada, it can help expose you to commodities.  Furthermore, Bobby weighs in on the "reddit revolution," noting that it has boosted the performance of some of these factors in a reopening environment. He also shares his thoughts on value stocks, stating that many value stocks are older companies in the more traditional parts of the market.
Recorded on June 11, 2021