Global asset allocation perspectives – Ilan Kolet

With Canada’s annual inflation rate cooling, CPI falling to 2.7 percent in June and slower growth all around, how will this affect the Bank of Canada’s next move? Institutional portfolio manager, Ilan Kolet sits down with host Pamela Ritchie and shares his thoughts on interest rates, inflation, and the Canadian dollar. With the consistent cooling down of inflation, Ilan says this could give the BoC the green light to become less restrictive. He says we will probably see a cut real soon, but he adds, rates will noy go back to the historic lows we’ve seen in the past. He points out that households, especially Canadian households will still feel the pinch which will trigger cutbacks on alot of discretionary spending of Canadians. Ilan who previously worked at the Bank of Canada says the BoC is aware of this stress on Canadians and it has no plans to implode Canadian households. Ilan says what we need to focus on is improving Canadian productivity. Canada’s GDP didn’t see any growth in 2023 and has lagged greatly behind the US. Ilan says currently the Global Asset Allocation team is overweight US equities specifically in the productivity sector and underweight Canada. He adds the team is also focused on commodities including gold, oil, and global natural resources.

 

Recorded on July 16, 2024.

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.