FidelityConnects

Building blocks: Industrials and materials – Claire Fleming and Robert Reynolds

Today on the show, we welcome equity research analysts Robert Reynolds and Claire Fleming. They break down what’s shaping the industrials and materials sectors, and what’s on their radar as we head into the second quarter. Robert and Claire provide an update on the copper supply story, explaining that there have been significant changes in the outlook since November of last year. Concerns were previously focused on how higher interest rates might impact demand in areas such as renewables and electric vehicles, although the biggest change has been in the supply outlook. This has caused challenges to sprout across the globe, which could eventually impact benchmark commodity prices. In regards to the materials sector, Claire and Robert cover a wide range of industries such as copper miners, forest products, coal, and chemicals companies. The packaging sector in particular has recently undergone changes that are independent of consumer behaviour. They add consumer Packaged Goods companies are refocusing on volume growth as inflation-driven pricing growth starts to fade away.

Recorded on March 22^nd, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

 

 

April 2024 Bank of Canada reaction – Don Drummond, Economist

The Bank of Canada held the key interest rate at 5% in the April 10th announcement. Inflation is slowing and Tiff Macklem, Governor of the BOC tipped that a June rate cut may be “within the realm of possibilities”. Joining host Pamela Ritchie for a special interview today to is Don Drummond, former TD Bank Chief Economist, who will breaks down what this latest Bank of Canada decision means for inflation, industry trends and financial markets.

Recorded on April 11, 2024.

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Jurrien Timmer's global macro view – April 8, 2024

Today on the show, we welcome back Director of Global Macro Jurrien Timmer for his weekly market perspectives. He discusses market trends, bond performance, and investment strategies. Timmer notes that the market has been driven by liquidity, with the Fed’s balance sheet and Treasury cash balances affecting the repo market and causing knock-on effects for the stock market.  He discusses the shift in power from monetary dominance to fiscal dominance, with bonds experiencing a regime change. Timmer suggests that investors should focus on diversification by investing in uncorrelated assets. He argues that Gold is a play in fiscal dominance, as a monetary base growth is rising despite the Fed tightening. He also predicts that debt service will become inflationary as real rates turn positive, which Gold is responding to. He also notes earnings growth is driving market optimism, reducing the need for Fed rate cuts. He also expresses that the Fed is aware of past policy mistakes and is currently leaning against fiscal dominance. So ,when they may cut rates is still up in the air as the optimism for several rate cuts diminishes.

Recorded on April 8, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

U.S. Federal Reserve and spring 2024 market impact – David Tulk

In March the U.S. Federal Reserve held rates steady and Fed Chair Powell commented that the Fed could reduce rates despite strong job numbers. All of these coulds and mights were all still in the narrative, and with markets generally rising and rates remaining pretty steady for longer than some thought, how do some of these changing market conditions and narratives impact asset allocation decision making? We’re joined today by portfolio manager David Tulk of Fidelity’s global asset allocation team, to speak about the Fed, global markets, Fidelity managed portfolios, and more. David sits down with host Pamela Ritchie.

 

Recorded on March 21st, 2024

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Denise Chisholm's sector and factor perspectives – March 14, 2024

Today on the show, we welcome Denise Chisholm, Director of Quantitative Market Strategy, with her monthly sector watch commentary. In this episode, Denise discusses this year’s presidential election and its impact on the economy, inflation and potential federal rate cuts, what sectors are on her radar. Denise says volatility in inflation is expected to continue, but, despite recent fluctuations, overall inflation growth remains modest and is not expected to significantly impact market returns.  She notes unless inflation accelerates to top quartile levels (around 4.5%), it is not considered a critical market driver.  The current level of inflation and Fed funds rate suggests a likelihood of a Fed rate cut in the near future, but when that will be is still unknown. From a sector perspective, this is what she’s looking at. Key market drivers continue to be: Earnings recovery and level of uncertainty in the market. She notes a level of uncertainty could be quite high when wide valuation spreads in the equity market are relative to very narrow spreads in the credit markets.  As an investor, the best risk-reward could be in the cyclical oriented areas, such as the technology sector. Denise recommends avoiding “classic defence” sector in terms of utilities and consumer staples.

Recorded on March 14, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Fidelity True North® Fund with Maxime Lemieux

Today on the show, we welcome Portfolio Manager Maxime Lemieux. He discusses the Canadian equity markets and provides an update on Fidelity True North® Fund. Max goes over the impact of the COVID-19 pandemic and geopolitical disagreements, as well as the recovery process for the market. There have notably been tensions regarding Eastern Europe and the Middle East over shipping lanes and retailers in North America, and disruptions within those lanes have driven up costs for some goods. The recovery for many business cycles has been sluggish with a significant downturn in various sectors, and thanks to varied conditions across these sectors it has been difficult to establish clear trend lines within them. Max also provides his strategic investment approach, mentioning the importance of selectivity when investing in telecom companies because of potential rate and cost cuts. He also advocates for a barbell strategy, balancing defensive companies that have strong balance sheets with more growth-oriented investments.

 

Recorded on March 26^th, 2024.

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Generating alpha with liquid alternatives – David Way

Hello and welcome to Fidelity Connects – a Fidelity Investments Canada podcast – connecting you to the world of investing and helping you stay ahead. Today on the show, we welcome Portfolio Manager David Way. He outlines the portfolio benefits of liquid alternatives and Fidelity Long/Short Alternative Fund. Dave explains that this fund acts as a source of daily liquidity for investors to access investments beyond fixed income and equity. He believes that it can be a core holding for equity exposure and is meant to deliver attractive and absolute returns relative to other equity alternatives. The short side of the portfolio allows for more conviction and putting more power behind the long side, and has done well for protecting capital during periods of market drawdowns. Dave also discusses the Canadian economy, reinforcing that Canada is a much more indebted country than the US and faces significant interest resets. The oil prices are relatively healthy at the moment with a growing demand for copper, although the country still lags behind other economies in terms of productivity.

Recorded on March 27, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

The Fed decision: A look ahead with Jeff Moore

Today on the show, we welcome Portfolio Manager Jeff Moore. He brings his unique perspectives on what the market is expecting, scenarios you may want to plan for, and how he is positioning multi-sector fixed income portfolios for your clients. Jeff explains that the Federal Reserve's emphasis on "nowcasting" instead of forecasting suggests their confidence regarding current trends and perceived inflation control. Short term market reactions may be influenced by the Fed's projections, although longer term segments of the yield curve such as 10s and 30s will likely remain unaffected.  Current yields are still perceived as a favourable entry point for bonds. This especially applies to government bonds as they offer compelling total yields amidst stable inflation expectations and present potential opportunities for investors.

 

Recorded on March 18th, 2024.

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Jurrien Timmer's global macro view – April 1, 2024

Joining us on the program for his weekly look at the markets is Director of Global Macro Jurrien Timmer.  Today Jurrien discusses inflation rates, a bullish outlook on the market, and Fed rate cuts. Jurrien says the stickiness of inflation continues. Hoping the rate would go down to 2% but 3 is now the new 2. What this in turn means is that the Fed could still cut rates, but it will probably cut less this year. Jurrien says the Fed could cut rates in June, but with the election season close don’t get your hopes up. As the Fed maintains its restrictive stance, warranting caution, Jurrien says the market appears resilient and is broadening. Markets adapt to Fed's reduced rate-cutting expectations and there is bullishness in the market as well. A type of cyclical bull market, Jurrien argues. 89% of stocks are above their 200-day and looking back historically bull market duration ranges from seven to 18 months, with a median of 30. As always Jurrien will be sharing his charts, so please head to @TimmerFidelity on X to follow along.

Recorded on April 1, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Investing in U.S. equities – Stephen DuFour

Today on the show, we welcome Portfolio Manager Steve DuFour. He gives us a look at the US equities on his radar, and how he determines which companies to invest in. Steve describes how the market is currently presenting several investable themes, which signals a favourable time for investors to explore those potential opportunities. Steve says artificial intelligence and the transition to electric vehicles are gaining prominence. The reshoring trend is being observed across multiple industries, and continues to evolve as companies reassess their supply chain strategies and make investments in facilities closer to home. Steve provides an overview U.S. Focused stock fund strategy, explaining that the fund follows a concentrated investment approach with a portfolio consisting of under 40 names. It focuses on identifying long-term investable trends amidst short-term market fluctuations, and leans towards companies exhibiting strong earnings growth compared to the market.

Recorded on March 19, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Factor investing: What's trending and why – Bobby Barnes

Joining us on the program today is Head of Quantitative Index Solutions, Bobby Barnes. Bobby discusses factors shaping today’s markets, AI, rate cuts, and much more. Bobby explains how there is a broadening of the stock market. Market is top-heavy with large stocks, leading to underperformance for most stocks. He adds it’s important to have active management and concentrate on stock picking. For him, he believes the focus should be on the twelve to eighteen-month horizon. Bobby also touches on the significance of AI on market dynamics.  He says AI is a theme to pay close attention to as it could potentially be a major factor at the stock level. Earnings are coming through right now for companies that are selling AI solutions. He adds the broadening out of the market and AI are connected. Turning to factor investing, he says things haven’t changed – what worked last year is working year-to-date. Bobby says drivers to follow are change in the cost of money, availability of money, consumer’s excess savings/consumer spending. He notes once the Fed cuts, you will not want to be in growth, quality, or momentum. 

Recorded on March 15, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Dividend investing in 2024 – Ramona Persaud

Today on the show, we welcome long-time dividend investor Ramona Persaud. Ramona touches upon volatility, compound growth, and of course, her dividend investing strategy. Ramona explains how her investment strategy works with in a volatile market environment. She says she focuses on key pillars including excess return or alpha, downside protection and a reasonable level of income. Ramona says she’s currently looking at the markets with an open mind. She alludes that there may be a perception of a de-risked economy due to factors like inflation and supply chain issues. She adds, interest rates will most likely not go as high or as low post global financial crisis, but rather in between. When rates are high, this is good for value and great for economically sensitive stocks. Ramona believes there is a potential for a more stock-picking market where skilled picking can drive differentiation and success. She notes how dividend stocks have changed and evolved due to an increase in companies paying dividends. Historically, financials were the main dividend payers but have shifted over time. Ramona stresses the Importance of Active Management. Passive dividend strategies may not provide the desired volatility reduction. So for her, she advocates for an active and intentional approach to dividend investing.

Recorded on March 12, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Behind the numbers: Meet Stacie Ware, Quantitative Analyst and Olympian

For today’s podcast, we’re excited to bring you an episode of our new “Behind the Numbers” series. In “Behind the Numbers”, Chris Pepper, VP, Corporate Affairs, speaks with Fidelity’s portfolio managers, analysts, subject matter experts, and more, about what brought them into investing and what drives them every day. Stacie Ware, quantitative analyst in Fidelity’s Merrimack, New Hampshire, fixed income team, is today’s guest. Stacie shares her intriguing background and life she lead before joining Fidelity.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Empowering women in wealth – Michelle Munro

Today on the show, we welcome Michelle Munro, director of tax and retirement research. She discusses the importance of women in wealth management, including how women view money and how advisors can better connect with their female clients. Michelle describes today’s female investor as well educated, active in the workforce, earning their own money and contributing to the household finances. The influence of women in financial decision making has seen a substantial increase, and we see more women in executive roles and starting their own businesses in the current landscape. Michelle explains that women view financial concerns somewhat differently than men, particularly in terms of retirement and personal outlook. Women are more goal-oriented in terms of investing, connect emotional well-being with financial stability, and must prepare for more years of retirement thanks to higher life expectancy. It is important for advisors to cater to their female clients, partially because while men are starting to transition to a “do it yourself” investing approach, women statistically still want advice from advisors.

Recorded on March 8, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

After the BoC: Impact on Canadian bonds – Sri Tella

Today on the show, we welcome Portfolio Manager Sri Tella. He discusses his outlook for Canada’s bond markets, and the opportunities for fixed income following the latest Bank of Canada interest rate announcement. Sri notes that the BoC hinted at concerns regarding inflation, contributing to the uncertainty surrounding rate cut decisions. Shelter in particular is expected to contribute roughly 50% to inflation over this year. There were no indications of rate cuts given to the market, and some cuts have been priced out of the market which suggests a potential delay in the magnitude of future cuts. Sri also outlines the bond market sectors that he now sees as most attractive. Provincial bonds, securitized products and the energy sector are currently favored due to factors such as historical valuations, short duration combined with high spreads, and stability respectively. 

Recorded on March 7, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

 

In conversation with Fidelity's Head of Women and Engagement – Lorna Kapusta

Today on the program we welcome special guest Lorna Kapusta, Fidelity’s Head of Women & Engagement. Lorna leads female-focused initiatives building experiences, solutions and designing resources to better serve the unique needs of women. Studies have shown women are actually more risk aware when it comes to investing. Women tend to weigh the effort they put in for the money they’ve earned. Lorna highlights how the advisor community should focus on understanding a woman’s approach to money and that the way her decision-making on investments is different than a man. Recognize the possibility that she is trying to achieve several things rather than just one. Studies have also shown women ended up doing well with a holistic approach to financial planning and sometimes on average a little bit better than men. Lorna also discusses what motivates women to invest, what factors go into that, and she highlights Fidelity’s Women Talk Money program that provides women a financial community with live discussions, special guests, and workshops.

Recorded on March 5, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Behind the numbers: Face-to-face with Hugo Lavallée

For today’s podcast, we’re excited to bring you an episode of our new “Behind the Numbers” series. In “Behind the Numbers”, Chris Pepper, VP, Corporate Affairs, speaks with Fidelity’s portfolio managers, analysts, subject matter experts, and more, about what brought them into investing and what drives them every day. Today, Chris catches up with Montreal-based portfolio manager Hugo Lavallée who has had a long career with Fidelity, but only after some initial hurdles getting his foot in the door.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Crunching the numbers: U.S. financials sector – Lee Sotos

Today on the show, we welcome Senior Cross-Asset Financial Analyst Lee Sotos. He looks at how the US financials sector is fairing in reaction to interest rates and global trends. Lee explains that the rates towards US Financials and Global Financial Fund are still being held, and that the market has decreased rate cuts this year moving from 6 to 3. The sector is still working towards a soft landing, although that is a difficult goal when unemployment remains high and components such as wage and inflation are engineered by the Federal Reserve. The Fed is currently being careful of the economy that is actively being pushed into a softer time period, where the rates stay higher up for longer. Lee also dives further into the Global Financial Services Fund, stating that its current team is primarily increasing fund payments of major companies like Visa and MasterCard. The team believes this fund is durable enough to keep up with a soft landing or even a no-landing scenario, and that it could have a more balanced approach should the rates go down faster than expected. 

Recorded on March 6, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Denise Chisholm's sector and factor perspectives – February 29, 2024

Today on the show, we welcome back Director of quantitative market strategy Denise Chisholm. She discusses the Fed’s next possible move, her current market thesis, and what sectors are on her radar. Denise talks about durable recovery in terms of sectors. She says labor costs, good prices, and PPI came down faster than CPI. Technology was the first to be in the earnings recession, however it is now the first out. She sees a great setup for post-recessionary recovery and adds we are not in a situation where investors should be thinking about underweighting technology stocks. Denise touches on the Fed’s decisions on interest rate cuts saying they are not too concerned with the equity market. She adds there is very little correlation between acceleration of growth to the acceleration of inflation. The sweet spot would be an inflation rate above 2%. The sweet spot for equities is between 3 to 4% with Real GDP growth higher. She also highlights top sectors as consumer discretionary, and technology and bottom sectors as energy, consumer staples and utilities.

 

Recorded on February 29, 2024.

 

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Jurrien Timmer's global macro view – March 25, 2024

Today on the show, Director of Global Macro Jurrien Timmer discusses the Fed’s latest policy announcement, the highs of the Japanese market, and other macro trends. The Fed’s recent decision to hold interest rates where they are was a bit of a surprise for the market. Jurrien says although the Fed maintains there will be three expected cuts, this new situation creates a timing issue. He says generally, the Fed doesn’t like to cut or hike rates around elections because it doesn’t want to be seen as meddling with the election cycle.  In that sense Jurrien says, a March cut, a June cut and then walking away for a while would have been the best solution, but inflation numbers prevented a March cut from happening. Jurrien believes that the Fed will cut rates in June, and maybe in December, leaving the time around the presidential election untouched. Jurrien also speaks at length of a bullish broadening of the market stating the cap weighted index is continuing to make all-time highs. The highs are also joined now by the S&P 500 equal weighted index. He points out 81 percent of the stocks in the S&P 500 are above their 200-day moving average. This means that they are in a long-term uptrend. Jurrien says the market is broadening in the upwards direction, which is the best thing you can hope for if you’re an active investor. As always, Jurrien shares his charts so please go to @TimmerFidelity on Twitter to follow along.

Recorded on March 25, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.