Portfolio manager Jeremy Podger discusses his global portfolio positioning and shares his regional outlooks. Jeremy notes that this year has been largely about large-cap tech stocks in the U.S. He doesn’t consider valuations to be unreasonable for these companies, due to the amount of cash flow being produced, but he notes they also come with more political and regulatory risk, and they may not look as good during a rapid economic recovery. Fidelity Global Fund has owned a number of these tech names (and allocates more than the benchmark to tech companies), but right now Jeremy’s focus is on cyclical stocks, and on cheap stocks, where there’s more potential for upside. Currently, he is favouring Asian emerging markets, specifically Korea, where he is finding great value. Jeremy has an overall bullish outlook on the U.K.; stocks look cheaper there relative to the rest of the world, and he has been slowly adding to positions where he sees value.
Recorded on December 16, 2020.