Today on the show, we welcome Portfolio Manager David Wolf. He provides insights on how the Global Asset Allocation team is positioning Fidelity Managed Portfolios for the year ahead, and why advisors should consider including them in client RRSPs. David explains that global asset allocation decisions for portfolios involve a top-down approach that is primarily focused on growth, inflation, policy, supply and demand. David explains supply is significantly more challenging to measure than the amount of demand present, and the models that Canadian consumers have been relying on continuously underestimate the capacity of America’s economy. David also discusses interest rates and how the timing and magnitude of rate cuts by central banks are determined. Rate cut periods usually fall under one of two scenarios; either the economy experiences a soft landing with gradual rate cuts, or the central bank is forced to cut them more aggressively due to increased economic deterioration. David adds while the Federal Reserve in the US may have the freedom to cut rates by choice, the Bank of Canada may be compelled to do so out of necessity to stimulate its economy.

Recorded on February 27th, 2024.

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