UK-based Investment Director Tom Stevenson provides his views on the trends in the global markets and the areas of opportunity across different sectors. Tom says the services sector Purchasing Managers’ Index (PMI) has been the best in 15 years. It measured at a 60, where 50 is the median line. Tom discusses strong earnings and the increase in dividend payments. He notes that sectors that are out of favour can be the ones with the best dividend rates, not necessarily ESG friendly sectors. Tom believes that people would enjoy these dividends but will steer towards renewables over the long term. Tom shares that for UK investors, there is an argument for investing domestically than in China. He says growth in the UK is cheaper, and government policy is more predictable. However, the challenge may be navigating Brexit. Tom also adds that there are two factors to consider regarding commodities: demand and supply. He notes that there is favourable balance for investors, but not so much consumers.

Recorded on August 4, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-stevenson-live-from-london-08-04.pdf