Financials have stayed in great shape throughout the pandemic. Portfolio manager of the Fidelity Global Financial Services Fund, Sotiris Boutsis, speaks with host Pamela Ritchie about why investors might want to consider financial services in their portfolios. The Federal Reserve’s policy has shifted to an outcome-oriented policy which has affected financials positively. He notes that real rates are negative right now versus very positive over the last ten years. Sotiris also shares his thoughts on the Fed’s inflation target. He says there is a need to be monitoring inflation expectations stating that if the 5-year rate is falling more and more, the Fed could react with additional action. Additionally, Sotiris discusses his fund positioning. He is playing to secular themes, such as retirement and payments, and on the cyclical side, he is moving to good quality companies with decent growth.
Recorded on June 23, 2021.