Fidelity’s directors of research Joe Overdevest and Lucas Klein share their outlook on North America and equity markets as investors try to weigh the long-term impact of reopening plans and fiscal responses. Joe and Lucas have been watching sectors and market trends, and reflect on financials, big pharma, inflation, housing and real estate, among other topics. Joe notes that he is currently most excited about financials and resources, but because of the breadth of the Fidelity research teams, they are able to find opportunities in almost every sector. Joe believes that there is a very low probability that Canadian banks will make dividend cuts, and from a sector perspective, the portfolio managers are seeing more attractive opportunities in this sector than they have for the last couple of years. And in the U.S. financial market, Lucas notes, brokers are down to less than one times tangible book; at recessionary levels like this, it makes sense to invest in banks.
Recorded on June 5, 2020.