FidelityConnects

2024 outlook and opportunities – Don Newman

On today’s podcast, we speak to portfolio manager Don Newman as he reviews 2023 and what opportunities lie ahead for dividend investors. Don manages two dividend-focused Funds, the Dividend Fund and Dividend Plus Fund. Don points out there’s been a change in his investment strategy because of the rate changes we experienced this year. He’s looking for businesses that can withstand increased rates. Zoning in on companies with less average, lower payout ratios. That means lower dividend yield, but can still grow under higher interest rates. He adds that industrials have been a solid sector as of late. For example, it looks like the inventory destocking cycle is coming to an end which means more shipping opportunities specifically through rail. REITS have had a difficult year, but Don says there are still opportunities in real estate with respect to AI. Data centers could increase in demand next year. Don is looking at firms with large cash flow that can use their unique data along with AI and produce a competitive advantage.

Recorded on November 28, 2023.

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.

Trends shaping wealth management in Canada – Carlos Cardone

On today’s podcast, we take a look at Canada’s wealth management landscape and how it continues to evolve and change. Carlos Cardone, Senior Managing Director at Investor Economics, leads the discussion today as he highlights the on-going high interest rate environment, how that affects household financial wealth and where Canadians are choosing to invest their money. Carlos also highlights how saving dynamics have shifted amongst Canadians and how Canada’s high net worth trends compare to global trends.

Recorded on November 29, 2023.

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 – November 24, 2023

Joining us on the podcast today is Denise Chisholm, Director of Quantitative Market Strategy. She speaks with host Pamela Ritchie about productivity and unit labour costs, higher wages and smaller margins misconceptions, as well as the global impact of AI. Denise says unit labour cost is a key variable impacting the stock market right now. She says there has been an abrupt normalization. One of the biggest concerns in the market is not goods cost because goods have been in deflation, but it is the middle part driven by wage growth. And in regards to the stickiness of wages, she says, what it actually means is that it’s good for profit margins on a go-forward basis. Denise also talks about the “miracle aspect of productivity.” She says two major factors contributed to the current situation. A.I. was a game-changer for productivity in software and computers and COVID created a positive productivity shock. This in turn generated a positive outlook for productivity cycles and their impact on the stock market.

Recorded on November 24, 2023.

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: Where are we now? Bobby Barnes

Fidelity head of Quantitative Index Solutions, Bobby Barnes, joins the show today to discuss the current market cycle. While the magnificent seven have driven a 20% year-to-date increase in the S&P 500, he cautions against overlooking other areas of the market. He highlights the Fed's intention to combat inflation through interest rate hikes, emphasizing the importance of understanding the direction rather than the absolute level of economic indicators like the ISM. Bobby also provides insights on the market's potential trajectory, suggesting reasons to be positive but also noting the importance of considering factors like average stock performance and consumer indicators. The conversation also touches on late-cycle positioning, the role of AI in shaping market dynamics, the market's vulnerability to exogenous shocks, the outlook for interest rate cuts, and considerations for asset allocations, particularly in fixed income. Overall, Bobby advises investors to closely monitor incoming data and position portfolios accordingly in light of the hikes still to be digested.

Recorded on December 1, 2023.

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 – December 11, 2023

On the program today, Fidelity Director of Global Macro Jurrien Timmer with his weekly discussion on macro themes on his radar for the trading week ahead.   Jurrien says recent job reports reveal that the job market is slackening, excess demand of labor came out of the pandemic, so does this signal a move by the Fed to consider timing of possible rate cuts? Historically, a hiking cycle ends because the Fed has broken something, which results in a recession. The inverted yield curve signals a recession could be coming. But it looks like the market is confident that the Feds have stuck a soft landing. However, Jurrien says being right about a Fed pivot and soft landing doesn't lead to what the market would do as that all depends on price. The market often rallies before earnings recover.

Recorded on December 11, 2023.

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.

A look at global healthcare trends for 2023 – Alex Gold

Portfolio manager Alex Gold joins us on the program today. Alex manages Fidelity’s Global Health Care Fund for Canadian investors, and today, he looks at what trends shaped 2023 and what potential sectors could shape 2024.  Alex says our aging population continues to drive the healthcare sector. It’s anticipated that the 65+ year-olds population will rise from 750 million to 1.5 billion by 2030. This will open up opportunities in the healthcare sector driven by innovation advancement in healthcare companies. A big theme as of late has been anti-obesity drugs. Novo Nordisk for example has been fighting the ongoing epidemic of diabetes and obesity for over a decade. The Danish drug manufacturer has seen an incredible 1,953 per cent increase since 2010. Companies that help with the manufacturing for medical vials and injectable cartridges have also benefited from this rise.  Alex points out the fund is underweight pharma and large biotech and overweight managed care particularly focusing on major insurance companies.

Recorded on November 22, 2023.

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.

Expanding economic opportunities for all Canadians – Elizabeth Mullholland

Today on the program, we welcome special guest Elizabeth Mullholland, CEO of Prosper Canada. Prosper is a national charity that focuses on expanding economic opportunities for people with low incomes across Canada through program and policy innovation. Liz brings an insightful discussion on how we can promote promote financial policies, programs and resources that could transform the lives of Canadians. One of those programs is Benefits wayfinder - an online tool that helps people typically with low to modest income to identify any provincial or federal tax credit or income benefits that aims to reduce taxes and boost income. Liz says there is a market gap when it comes to financial help for people with low income. Prosper have been piloting free one on one financial Advice services. People who need help with tax files or addressing any urgent financial issues.

Recorded November 21, 2023.

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.

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

Today on the program we are joined by Equity Research Analysts, Robert Reynolds and Claire Fleming, who break down what’s shaping the industrials and materials sectors, and what’s on their radar as 2023 comes to an end. Robert who focuses on the industrial space says high rates continue to have a major impact. Themes include inventory restocking, government spending and the pace of energy transition. Port and auto strikes are also having significant impacts on industrials. He adds services and airlines have been successful this year, but there are concerns of how long leisure travel will be sustainable. Claire focuses on materials, which includes Copper and diversified mining companies, agriculture and packaging. Claire highlights some macro themes affecting packaging. She says historically it’s been one of the most defensive sub sectors given that demand tends to be more stable for consumer products. However, the destocking of physical goods trend is negatively impacting the demand for packaging. She says we could see organic growth rates improve from companies working through the related impacts of destocking.

Recorded on November 17, 2023.

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.

Emerging Markets: Regions in Focus – Abhijeet Singh

Today we are joined by Abhijeet Singh, Institutional Portfolio Manager of the Emerging Markets Fund. He gives us an overview of his fund and his thoughts on investment opportunities he’s keeping an eye on. Abby shares his thoughts on China’s slow growth. A lot of consumers are sitting on cash and not spending. Abby says valuations do look attractive in China, so they are overweight China relative to the benchmark weight. They anticipate the valuation gap will close over time. He adds the Chinese-US relationship is crucial and a good sign where both economies need each other. On the other side, Abby says the valuations in India are expensive, which includes all sectors in comparison to Emerging Markets or Developed markets. He says because of this they’re underweight India. So far the picks they do have are working very well. He adds the consumer story in India is much smaller than in China. However, he thinks we’ll see a large number of companies going public in the next 5 to 10 years. Abby also discusses the US dollar, AI and Aerospace as a current area of interest.

Recorded on November 15, 2023.

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.

Under construction: Building resilient client portfolios – Paul Ma

Today we are joined by Paul Ma, VP and Lead Portfolio Strategist, as he discusses his market thesis including where we are in the business cycle, and the growth stories in Europe, the US, and China. Paul says the Fed is looking a lot more relaxed and that we are reaching the peak, more of less, of the inflation story. He adds the market looks happy and bullish right now, so being diversified in your opportunities should be top of mind. Paul says Japan and India are the countries he’s keeping an eye on. Bringing manufacturing supply chains to India and Mexico could help our supply issues. He adds Japan is benefiting from some inflation. Paul also argues that the new emerging market is in North America in middle America, Canada, and Mexico. We use to house manufacturers in China, now those manufacturers are being set up closer to home.

Recorded November 16, 2023.

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 – December 4, 2023

Today on the program Fidelity Director of Global Macro Jurrien Timmer presents his weekly discussion on macro themes moving the markets and what trends and topics he has on his radar. This week Jurrien touches on a possible soft landing, what the most recent CPI and PCE reports indicate, and what’s on the horizon for the rest of 2023. Jurrien says if inflation does revert back to 2 to 3%, the Fed should be able to revert as well. That is from restrictive back to neutral. He adds, November has been a big relief for stock and bonds, as they have rallied as of late. And with the economy softening at the margins, Jurrien says the market could be justified at this point in saying the Fed could give back some of the rate hikes it has put out, even if we do go into a recession next year. Jurrien points out if we do get a soft landing next year, left-behind stocks, that are vulnerable to rising rates, could catch up quickly if rates start to fall.

Recorded on December 4, 2023.

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.

Fourth-quarter capital market playbook – Andrei Bruno

On the podcast today is director of ETFs Andrei Bruno. As the fourth quarter of the year wraps up, Andrei shares his perspectives on the current market environment and what outcomes and challenges he sees playing out for the rest of the year and into 2024. Andrei says market reactions suggest an anticipation of rate cuts early in the New Year and those probabilities of rate cuts are priced in for both U.S. and Canada. The Fed has indicated a cautious stance emphasizing a potential deviation from a smooth economic path. The Bank of Canada is perceived to have completed its rate hiking cycle, but recent GDP performance in Canada indicates flatness, raising the possibility of entering a technical recession if the trend persists. Andrei points out diversification remains paramount in uncertain economic times. He adds discussions about portfolio risk and strategic allocations need to occur and that longer-duration securities are potentially more attractive in an evolving interest rate environment.

Recorded on November 14, 2023.

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 – November 10, 2023

Joining us today is Denise Chisholm, Director of Quantitative Market Strategy. She tells us what factors and market sectors she’s keeping an eye on and where she’s seeing opportunities. Denise talks about the volatility of the bond market pointing out that they have a volatility premium as the equity market. Denise says this creates a bear care for treasuries or higher yields. When you look at the speculators, the large speculators, you see net positioning is the most short its ever been historically going back to the 90’s. She says this is a great contrarian indicator. The more visible the bear thesis is the more likely it’s already priced into the market and the more likely it is there’s actually a total return opportunity in bonds as well as in equity. Denise also highlights opportunities in industrials, consumer discretionary, technology and financials. Bottom sectors would be utilities, and consumer staples.

Recorded on November 10, 2023.

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.

Unearthing high-value, mispriced companies – Connor Gordon & Chris Maludzinski

Today we’re joined by portfolio managers Connor Gordon and Chris Maludzinski, as they discuss the kinds of opportunities that they are unearthing in small cap companies across the globe. They co-manage the top rated Fidelity Global Small-caps Opportunities Institutional Trust. Connor explains their investment strategy, which includes ‘quality plus change equals mispricing.’ They search for situations where there is change and dislocation which creates uncertainty. Through that uncertainty with Fidelity's research advantage, they try to find situations where they can form a differentiated view of the future. Connor adds that they are looking for companies that have great free cash flow dynamics, high return on capital that allows them to grow at higher rates over time. Chris adds in the small-cap space, it really is prone to mispricing and dislocation. They look for exceptional management teams, companies that have really high return on invested capital, and more importantly large growth runways in front of them.

Recorded on November 9, 2023.

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.