Portfolio construction for the rest of 2023 – Paul Ma

Back on the program today is Fidelity VP and Lead Portfolio Strategist Paul Ma to discuss where we are in the business cycle, how to approach your portfolio construction in today’s market environment, and how the remainder of the summer might shape up for equity markets. Paul suggests we need to see core inflation come down a little more even though headline CPI is down a lot already about 3% at the moment. In terms of the business cycle, we’re still in the late cycle in the US. Down the line, high interest rates will cause a slowing down of the economy. Paul says it’s not a question of if a recession will happen, but rather how long it would take to get there. Paul adds investing in quality names could work in this space and avoid looking at companies with a risky balance sheet . He points out less quality nature companies get swept away when interest rates are high.

Recorded August 9, 2023.

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