FidelityConnects

Three themes to watch as economies reopen - Andrew Marchese

July 22, 2021

As economies reopen around the world, many investors are keeping an eye on rising inflation. Andrew Marchese, Chief Investment Officer and portfolio manager, shares his insights into the market's key themes as we progress into the second half of the year. For Canadian investors, Andrew manages Fidelity Canadian Disciplined Equity Fund, Fidelity Canadian Equity Private Pool, and Fidelity Concentrated Canadian Equity Private Pool. Andrew frames today’s discussion around three main themes investors should be aware of. The first theme he looks out for is speculation. We're dealing with an unprecedented amount of stimulus. Hence, as the cycle progresses and central banks reduce their stimulus, we'll have to keep an eye on how speculation in certain asset classes may decline. The second theme is inflation. Andrew shares many macroeconomic indicators that can continue to build inflation, noting that the amount of stimulus poses a headwind to inflation. For the third theme, he encourages investors to focus on the fundamentals of companies going forward. Additionally, Andrew shares his thoughts on housing and financials, and the sectors that might attract this stimulus and benefit from the expected environment.

Recorded on July 15, 2021.