FidelityConnects

Denise Chisholm's sector and factor perspectives – August 8, 2024

Today we check in with Director of Quantitative Market Strategy Denise Chisholm for her sector watch analysis and what recent data is telling us about the broader economy. As the markets find its footing after last week’s global selloff, Denise shares if this was part of a healthy market correction or if it’s a sign that a recession or even possible hard landing is on its way. She says looking at historical data, what you will find is that when there are big spikes in the VIX, especially relative to the increase in credit spreads which run up , but not very much – what you will find is that in the top 2% of all occurrences, even in the top decile, those spikes tend to happen 85% of the time outside of recessions. So, for Denise, this recent sell off was not a typical recessionary signal. Yes, a shock to the market, but based on history, not shocking enough to tip the market into a recession. Denise says the labour market continues to be strong with the participation rate increasing especially those at prime age between 25 and 54 years old. In terms of strong sectors, Denise says financials and health care are showing potential to outperform. Denise says it may be time to lean into those economically sensitive sectors

 

Recorded on August 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Yen and Now: Understanding the Carry Trade aftermath – Salim Hart

The Bank of Japan raised interest rates last week, causing a rippling affect that rocked global markets. The Japanese Yen surged, and the carry trade began to unravel. Global markets have rebounded since then, but may investors are searching for answers as to what this means for the markets going forward. Could the carry trade continue to unwind? And what could the Federal Reserve’s next move be as they look to cut interest rates next month? We speak to Fidelity Portfolio manager Salim hart to make sense of the latest events and what the Global Intrinsic Value team are positioning their portfolios for the months ahead. Salim recently visited Japan and provides insights into what the Bank of Japan could do next and what opportunities is finding at the moment. He also discusses the newly launched Global Micro-Cap Fund, which taps into the broad and less explored market and what opportunities he’s seeing with newer, less-established companies.

 

Recorded on August 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Third-quarter capital markets playbook and global sell-off reaction – Andrei Bruno

The dust is settling somewhat as markets get a handle on a global sell-off this past weekend that saw investors move money out of markets due to worries of a recession in the US, a slump in earnings from giant tech companies, and Japan’s Nikkei seeing its worst drop in almost two decades. To unpack this global market situation is Fidelity’s director of ETFs Andrei Bruno. Andrei sits down with host Pamela Ritchie to discuss how the market could recover and what this all means for investors. Andrei says although the global sell-off is a bit worrisome, generally, market corrections are healthy. He says now is not the time to panic or make any extreme moves. He says now is the perfect time to diversify your portfolio and take advantage of active management where investment professionals can make sense of the chaos. With a wealth of experience in bonds and the capital markets, Andrei says to keep a close eye on fixed income. Perhaps it may be time to add duration to your investment sleeve specifically US bonds. Andrei adds many questions still linger as global markets begin to calm down, he adds this probably won’t be the last of the market volatility we’ll see this year. But a US recession won’t come tomorrow. Stay the course, and focus on diversification.

Recorded on August 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Analyst perspectives: Industrials and materials earnings season takeaways – Claire Fleming and Robert Reynolds

Today on the show, we check in with two of Fidelity Canada’s equity research analysts Robert Reynolds and Claire Fleming. They share their latest insights into the industrials and materials sector and what they could see happening in the remainder of the year. Bobby and Claire sit down with host Pamela Ritchie and talk about the hit equity markets are taking as of late, and what that could mean for their respective sectors. Bobby reiterates the markets have seen days like this before. He says U.S. industrials have been relatively strong over the last year and half where certain themes like nearshoring could be beneficial. Claire points out materials, like copper, has seen some challenges. But she also says there are some great differences this cycle compared to past cycles where some secular trends can help offset some of those cyclical pressures. Claire and Bobby also touch on Mergers and Acquisitions, the latest earnings report and what a potential rate cut by the Fed could mean for sectors and for consumers.  

 

Recorded on August 2nd, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

What the Fed's recent rate decision means for markets – Ilan Kolet

With the Fed’s latest decision to hold rates, but also signaling rate cuts ahead in September, we sit down with Institutional portfolio manager, Ilan Kolet to get his insights into the current inflationary environment, and what it means for the Global Asset Allocation team’s fund positioning. Ilan speaks to host Pamela Ritchie about current US unemployment numbers, productivity, and how the latest data is creating optimism in the markets.  Ilan who previously worked at the Bank of Canada says the BoC’s is not motivated by geopolitics or other macro themes, but rather influenced on monetary policy and not politics. Ilan says the GAA team continues to be overweight US equities, albeit slightly trimmed down. He adds they are also overweight commodities and are invested into EM as they see this area filled with potential growth.

 

Recorded on August 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

FidelityConnects x Invested In Wellness: 10-minute holiday long weekend flow

As we relax this holiday long weekend it's time to clear our minds and look ahead. On today's podcast we welcome back Jessie Sarafian, host of our Invested in Wellness podcast and webcast, for a standing flow exercise to put our body and mind's in the right space.

Under construction – Building resilient client portfolios – Paul Ma

With inflation cooling, a dovish Federal Reserve, and resilient growth, the US economy is exhibiting classic 'Goldilocks' conditions - neither too hot, nor too cold - but just right. And today's guest is seizing this opportunity. Joining the show today to discuss where he's finding opportunity in the US and beyond, including where we are in the business cycle and what that means for portfolio construction ideas is Fidelity US Vice President and Lead Portfolio Strategist Paul Ma. Paul gives the audience and host Pamela Ritchie an overview of the US economy and market conditions, and outlines a favorable environment of solid fundamentals, including strong GDP growth and lower inflation. He emphasizes the potential of small-cap stocks, noting their undervaluation compared to large-cap stocks, though he cautions that small-cap stocks are more vulnerable to economic fluctuations and high interest rates. He also discusses global market dynamics, focusing on India's economic growth amidst geopolitical tensions and trade shifts. Paul explains his approach of balancing investments between small and large-cap stocks while keeping an eye on global developments and inflation trends, and how this could help investors.

 

Recorded on July 31st, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

What's next for U.S. Growth Opportunities – Tom Rollins

Today on the show, we welcome institutional portfolio manager Tom Rollins.  Tom works closely with portfolio managers Kyle Weaver and Becky Baker who co-manage Fidelity’s U.S. Growth Opportunities Class fund. We check in with Tom to discuss growth opportunities in AI, in mega-cap stocks, and what investment opportunities are on the minds of both Kyle and Becky. Tom emphasizes the appeal and opportunity within the artificial intelligence landscape noting that we are currently in the build-out phase of AI. Tom says the team is investing in supply chain companies that are supporting this massive buildout. Tom says the fund team looks for companies and stocks that fall into 3 main buckets of the growth landscape: one - mature companies that are growing faster than the market; two - companies demonstrating resilient growth and three, companies that are less mature and are on the tipping point of massive growth. Tom adds macro themes in the market don’t play a big role in the team’s investment decisions; they spend more time focusing on mini-cycles within certain industries and sectors that are timed differently than the overall market. 

 

Recorded on July 30th 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Exploring fixed income – Beau Coash

Today, we explore the fixed income landscape with Institutional Portfolio Manager, Beau Coash. Beau discusses AI’s impact on the bond market, market volatility amid political developments, and investment strategies in the corporate environment. With inflation cooling and yields no longer at their peak, Beau notes that the Fed is moving closer to cutting rates, signaling a more normal market environment. He also touches on the emerging opportunities in fixed income, which are supported by positive economic indicators such as consumer spending and easing wage pressure. Beau also highlights the bond markets attractiveness, with U.S. Treasury yields at levels not seen since 2006. He outlines investment strategies that favor maintaining liquidity, and shares his current thoughts on the US dollar’s strength.

 

Recorded on July 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

The AI transition and commodities update – Joe Overdevest

On today’s podcast we hear from Joe Overdevest, portfolio manager, on two different topics: the AI transition, and commodities. We’ll hear Joe’s thoughts on companies you might not recognize that may benefit from the AI transition. Additionally, Joe manages Fidelity Global Natural Resources Fund alongside Darren Lekkerkerker, and he ranks his current favourite commodities, and discusses the implications for their fund.

 

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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

July 2024 Bank of Canada reaction – Don Drummond, Economist

The Bank of Canada has cut its key interest rate by 25 basis points to 4.5%. This is the Bank’s second consecutive rate cut, and they’ve signaled more cuts ahead. Joining the show today to discuss what the latest rate cut means for Canada’s economy and for you, is renowned economist Don Drummond. Don has held several senior roles at the Federal Department of Finance where he was responsible for economic analysis, fiscal and tax policies. Don speaks with host Pamela Ritchie to dive into what lower interest rates could mean for the CAPEX story? And might lower interest rates spur further investment into Canada? They’ll also unpack inflation, wages, mortgages, immigration, and more. Let’s get to it.

 

Recorded on July 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

U.S. presidential election: What it means for Canada – David MacNaughton, former Canadian Ambassador to the United States

With the U.S. presidential election just three months away, and the incumbent president stepping down as the Democratic nominee, the race for the White House has taken quite the turn. So how does this race shape up now in terms of the global economy? What will it mean for trade, energy, and geopolitics in Canada? To unpack these issues and more, today we welcome special guest David MacNaughton to the show. David is the former Canadian Ambassador to the United States during the Obama and Trump administrations. He sits down with host Pamela Ritchie and shares his insights on a variety of political and economic topics. David says as one of the biggest trading partners to the U.S., Canada is very much reliant and affected by the political moves south of the border.

Recorded on July 24, 2024.

Jurrien Timmer's global macro view – July 22, 2024

US equity markets bounced back at the start of this week following Friday's global IT outage that impacted several industries, and President Joe Biden's decision to drop out of the presidential race has some feeling a greater sense of uncertainty in the markets as the election becomes tighter. So how are the latest market developments influencing today's guests market outlook? Joining the show today to share his latest market thesis, including the macro themes moving markets this week, and what they may mean for you, is Fidelity Director of Global Macro Jurrien Timmer. Despite the various recent events in US politics, Jurrien emphasizes the resilience of US financial markets, driven by strong earnings growth and anticipated Federal Reserve rate cuts. He highlights the current unique scenario where earnings are accelerating while the Fed prepares to ease rates, a rarely seen combination that is supportive for most stocks. The conversation between Jurrien and host Pamela Ritchie also touches on the ongoing shift in market dynamics, with potential broadening and rotation away from dominant mega-cap stocks, which especially benefits small-cap and value stocks.

 

Recorded on July 22, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Tech talk: Harnessing the benefits of AI – John Bradley

Hello, and welcome to FidelityConnects, A Fidelity Investments Canada Podcast. Connecting you to the world of investing, and helping you stay ahead. Today, John Bradley, Director of Emerging Technologies, sits down with host Pamela Ritchie to discuss the benefits of artificial intelligence in the financial services industry. He touches on AI tools for advisors, and the accuracy and relevance of data used by AI. He emphasizes the irreplaceable role advisors play in matching their client’s emotions and responding to changes – something AI cannot do effectively. John also talks about the industry’s compliance stance, highlighting the importance of understanding where data is stored, who owns it, and when AI tools come into play. He says while generative AI is not yet capable of providing high-quality financial advice, John sheds light on other emerging technologies that could help advisors. He notes the critical importance of ethics in using AI for financial advice.

 

And a note to our listeners, Andrei Bruno, our Director of ETFs at Fidelity Investments Canada will hold an AMA on all things ETF. That’s coming up on July 23rd at 12 pm eastern. Go to: reddit.com/r/etfs to pre-sumbit questions now or ask live on July 23^rd

 

Recorded on July 19^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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

 

Third-quarter dividend investing outlook – Don Newman

Portfolio Manager Don Newman joins the program and sits down with host Pamela Ritchie to discuss the investing outlook for Q3. Don talks about the impact of cooling inflation on dividend stocks, interest rates, and the overall market rotation. Don provides insights on sector-specific trends: how technology is feeling the impact of rate changes, while Energy and Financials might see growth from deregulation. Utilities and infrastructure are seeing an increased demand due to the need for AI and data centers, with infrastructure investments in regions like the Carolinas and Texas looking promising. Don also notes how Canadian energy sector companies are improving capital structures and  enhancing shareholder returns through these yields. Don also touches how lower interest rates could benefit Canadian banks, and what the current real estate opportunities in the health care and industrial sectors looks like.

 

And a note to our listeners, Andrei Bruno, our Director of ETFs at Fidelity Investments Canada will hold an AMA on all things ETF. That’s coming up on July 23rd at 12 pm eastern. Go to: reddit.com/r/etfs to pre-sumbit questions now or ask live on July 23^rd

 

Recorded on July 18, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Investing with conviction in Fidelity U.S. Focused Stock Fund – Steve DuFour

Today on the program, we speak to long-time portfolio manager Steve DuFour who manages the U.S. Focused Stock Fund. Steve shares his perspectives the current inflationary environment, the earnings cycle, and what the upcoming presidential race could mean for the US economy. Steve explains how the U.S. Focused Stock Fund is a concentrated fund comprised of 36 stocks. His niche is finding companies with strong relative earnings. For him, he spends time looking at companies with good balance sheets and good earnings. He’s not necessarily latching onto current trending themes. For him, he meets with company leaders, looks at company earnings as a whole, and from there discovers what themes are driving the company’s success. Steve also touches on the impact of AI, why he invests in healthcare, utilities, and REITS.

 

Recorded on July 17, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Global asset allocation perspectives – Ilan Kolet

With Canada’s annual inflation rate cooling, CPI falling to 2.7 percent in June and slower growth all around, how will this affect the Bank of Canada’s next move? Institutional portfolio manager, Ilan Kolet sits down with host Pamela Ritchie and shares his thoughts on interest rates, inflation, and the Canadian dollar. With the consistent cooling down of inflation, Ilan says this could give the BoC the green light to become less restrictive. He says we will probably see a cut real soon, but he adds, rates will noy go back to the historic lows we’ve seen in the past. He points out that households, especially Canadian households will still feel the pinch which will trigger cutbacks on alot of discretionary spending of Canadians. Ilan who previously worked at the Bank of Canada says the BoC is aware of this stress on Canadians and it has no plans to implode Canadian households. Ilan says what we need to focus on is improving Canadian productivity. Canada’s GDP didn’t see any growth in 2023 and has lagged greatly behind the US. Ilan says currently the Global Asset Allocation team is overweight US equities specifically in the productivity sector and underweight Canada. He adds the team is also focused on commodities including gold, oil, and global natural resources.

 

Recorded on July 16, 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Jurrien Timmer's global macro view – July 15, 2024

Fidelity Director of Global Macro Jurrien Timmer is back on the show today to share his latest market thesis, and the macro themes moving markets this week. Jurrien emphasizes that recent economic indicators, including the CPI and jobs reports, suggest that the Federal Reserve may soon begin cutting interest rates, possibly starting as early as September. He explains how this could potentially benefit both bond yields and equities. He points out that inflation has moderated, giving the Fed room to ease monetary policy. Jurrien discusses broader market implications, such as the potential for a broadening market rally, and the impact of global political outcomes on market sentiment, particularly in relation to fiscal policies and regulatory environments affecting different asset classes like bitcoin and traditional equities. The conversation also touches on the performance of the banking sector, the global implications of Fed policies, concerns around deflationary risks, and an analysis of recent corporate earnings reports. Take a listen.

 

Recorded on July 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Emerging markets key drivers for the second half of 2024 – Abhijeet Singh

Institutional Portfolio Manager Abhijeet Singh joins the show today to take us through the current landscape of emerging markets around the world, and to discuss the investment themes shaping Fidelity Emerging Markets Fund. Abhijeet points out that a potential U.S. rate cut could benefit emerging markets by alleviating pressures from a strong dollar and high U.S. rates, which have historically posed challenges. He highlights specific regions like Brazil and Mexico, where maintaining higher interest rates has helped stabilize currencies despite well-controlled inflation. He contrasts the investment appeal of countries like China, with attractive valuations amid economic stabilization efforts, against India, where high valuations have tempered investment enthusiasm. In terms of sectors, he favors materials and consumer sectors but advises caution in tech due to inflated valuations. He highlights the benefits of a balanced growth at a reasonable price strategy, which positions the Fidelity Emerging Markets Fund to capitalize on diverse opportunities while managing risk and global uncertainties. 

 

Recorded on July 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Denise Chisholm's sector and factor perspectives – July 11, 2024

In today’s episode, we are once again joined by Director of Quantitative Strategy, Denise Chisholm, to discuss sector trends, market movements, and crucial topics in the investing industry. With the recent CPI number out, Denise believes a rate cut is likely. The latest data shows shelter costs aligning with 2021’s level, signaling that inflation pressures are easing. Denise then cautions that the rapid normalization occurring may feel like a recession given its contrast with the past decades conditions. She emphasizes that investors need to stay open-minded and consider diverse factors influencing the economy beyond recent historical norms. She notes that small caps have begun broadening out after a lagging effect over the past six months. Denise stresses the importance of considering earnings growth, as it drives the market. She says improving risk-reward profiles for small caps is evident if earnings growth accelerates and the Fed cuts rates. Denise closes off by giving her thoughts on Canada’s labour demand, diving into sectors sensitive to interest rates, and identifies attractive opportunities within small-cap stocks amid potential market shifts.

 

Recorded on July 11^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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.