Sector strategist, Denise Chisholm, is back on the program to share her perspectives on the sectors to watch in global markets. Denise shares that a unique opportunity exists in the energy sector, as a structural change in fundamentals has occurred between the last cycle and this cycle. This has now boosted Free Cash Flow significantly, and for the first time in 40 years, energy companies made money in terms of Free Cash Flow. Denise shares that since growth is a critical driver of currency, she suspects that the depreciation of the U.S. Dollar over the past 6-9 months is over. She doesn’t believe the dollar will be much of a headwind on the energy sector. Denise also shares her thoughts on the real estate sector, noting that she is unimpressed with the risk-reward trade off for this sector. She considers REITs (Real Estate Investment Trust) to behave like cyclicals which become cheap at the end of the cycle, but they are currently expensive.

Recorded on July 22, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_denise_chisholm_22july.pdf