Steve DuFour, portfolio manager of Fidelity U.S. Focused Stock Fund, discusses his view on U.S. equity valuations in this market and where he is finding opportunities. As we look ahead into 2021, Steve believes the strong relative earnings growers will be the stocks that were specifically hit harder by shutdowns. Last year, notes Steve, you had to be in secular growers to get performance in the U.S. markets. These wound up being mainly technology stocks. As we head into the second quarter of 2021, he thinks cyclical parts of the market look more attractive than the secular parts, and he’s been transitioning the portfolio to add more cyclical recovery plays.
Recorded on March 10, 2021.