July's Federal Reserve meeting minutes revealed plans to start tapering before the end of this year which raised concerns over persistent COVID-19 variants impacting global growth. Sector Strategist, Denise Chisholm, discusses what this means for the economic recovery. Denise notes that the Delta variant may have less of an impact than investors think. Denise says there are higher income levels and higher growth in this cycle. She notes that historically companies will invest to the extent that there is growth. Denise also discusses investor sentiment noting that investors are back in the bottom quartile levels, which has been a result of the delta variant news. Sentiment tends to correct relatively quickly and there is not as much correlation to consumer sentiment and spending.

Recorded on August 19, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-chisholm-sector-watch-19aug.pdf

Markets continue to experience new highs, but investors know market ups and downs are regular. Investment Director Tom Stevenson joins host Emily Anonuevo to discuss key asset classes and potential areas of opportunity for investors. Tom shares that there's been a bit of a swing back to the defensive types of companies and the reliable things like utilities and consumer staples companies. Tom notes that investors should be thinking about the long-term rather than the market ups and downs. He also says he is positive about the markets as the economy and corporate earnings have been recovering, and valuations are reasonably high. Tom also shares his thought on Bitcoin and what it means from an ESG perspective. He says there has been a lot of renewed interest in bitcoin in the last few weeks and that Bitcoin mining is a much cleaner production than before.

Recorded on August 18, 2021.

Hong Kong-based Investment Director, Catherine Yeung, discusses opportunities for investors across Asian equity markets amidst uncertainty about COVID-19 variants. Catherine notes that there are opportunities for investors trying to look for correlation in the tech regulatory framework. Catherine believes that the areas we should be looking at moving forward are security, autonomy, and fairness. She says security should be an area of focus regarding the security of data and how data is being used. She describes autonomy in terms of the dual circulation policy and fairness in terms of ensuring that there is no monopoly or duopoly power. Catherine notes that investing in China is about understanding the fundamentals, the policy direction, and implementation.

Recorded on August 17, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-yeung-asia-econ-recovery-17aug.pdf

A 700% increase in new COVID-19 cases in the U.S. increases concerns of possible new restrictions and lockdowns. Jurrien Timmer, Director of Global Macro, shares his thoughts on how a fourth wave could affect the U.S. economy and the market implications of this. Jurrien says the U.S. is one of the most open economies. The states with the highest number of new cases generally have the lowest vaccination rates, but are increasing their vaccinations at the highest rates. Jurrien believes the second act of the value or reflation trade will likely happen when the fourth wave reverses and momentum indicators start to pick up again. He also shares his thoughts on financials and technology in the reflation trade. Jurrien says he has learned that even with the rotation into value, one can see how strongly large-cap tech has returned.

Recorded on August 16, 2021.

The reopening story from an investment perspective is different in many parts of the world. Portfolio manager Jed Weiss provides insights on a rather uneven international recovery and where he is seeing opportunities. Jed manages the Fidelity International Growth Fund. He says that Covid has been disruptive for several industries, but disruption can lead to investment opportunities. He adds that he's finding opportunities in travel software, commercial catering, and aerospace, noting that aerospace companies have been given the opportunity to cut costs in the market. Jed also notes that he sees investment opportunities in both China and more developed economies. He believes that once the recent regulatory initiatives have been solved, the big tech platforms in China are likely to be the dominant players in the future. Jed also discusses various opportunities in the health care sector. He says blood-plasma based drugs are part of an oligopoly with significant barriers to entry.

Recorded on August 13, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_weiss_13aug.pdf

The recent Intergovernmental Panel on Climate Change (IPCC) study showed that we are ten years ahead of the 1.5-degree Celsius temperature increase. Portfolio manager Kris Atkinson joins us to explore how investors can help combat climate change through fixed income investing. Kris manages Fidelity Climate Leadership Bond Fund alongside Sajiv Vaid. Kris says he is looking for companies that are adjusting their business models to reflect the carbon transition risk but also incorporate the physical risks. He notes that it is important to consider the physical and transition risks of climate change in all investment decisions. Kris shares that he has two investment buckets. These are companies that have already done something to aggressively decarbonize, and companies from carbon sectors that have a strong strategy to change. Additionally, Kris discusses strategies he would use if inflation persisted, noting that he would invest in companies that can benefit from inflation.

Recorded on August 12, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_atkinson-fi-focus_climate-08-12.pdf

Recent U.S. consumer inflation data ease concerns around the unwinding of stimulus, as the data was softer than expected. Portfolio manager John Roth joins us to put this data into perspective and discuss what he sees in the markets. John says earnings were 15% higher than expected in the most recent earnings season. He notes that financials, materials, and energy have been the strongest sectors, but he believes their growth rates will decrease. John comments on the positioning of his fund, Fidelity U.S. All Cap Fund. He says he tends to be more overweight mid-cap and small-cap relative to the S&P 500. John also discusses mining, electric vehicles, and the energy sector. He notes that with mining, you want exposure to copper and that there are environmental pressures on where to mine.

Recorded on August 11, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_roth_us_opps_across_mkt_caps_08112021.pdf

Equity markets are doing better with value in cyclicals outperforming growth at the moment, but the Delta Variant could cause a major shake-up in the markets. Darren Lekkerkerker, portfolio manager, joins host Emily Anonuevo to discuss North American equities and what investors can expect in the coming months. Darren manages Fidelity North American Equity Class, and manages the equity subportfolio of Fidelity Canadian Balanced Fund, among other mandates. Darren shares his thoughts on the reopening, noting that the general reopening trade is done, and many people are focused on stock picking. He says he is finding opportunities in apparel retail, real estate retail, software, railways, and agriculture. Additionally, Darren comments on the benefits of financial advice and staying focused on the long-term. He adds financial advisors can help avoid financial and wealth management mistakes.

Recorded on August 12, 2021.

David Way, Portfolio manager of Fidelity Long/Short Alternative Fund, provides an update on the fund's performance and shares his thoughts on a variety of topics. David is very optimistic about the future as the fund has a beta between 0.8 to 1. He invests 130% on the long side and 30 to 40% on the short side. He says that he can short and buy back at a lower rate in areas where he is more pessimistic. David notes many companies have been able to reduce discretionary expenses due to many employees working from home, allowing them to increase their profit margin. He says these companies are delivering great performances because expenses are lower. David also discusses areas in which he is finding opportunities noting that tech is a unique sector and that they are stay-at-home winners. He adds that he has shifted his focus away from tech to other sectors such as industrials.

Recorded on August 10, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-way-long-short-n-am-open-10aug2021.pdf

Portfolio manager David Tulk joins us to discuss the economic implications of new variants, issues in emerging markets, and the impacts of rising inflation on global asset allocation. As a member of the Global Asset Allocation team, David manages many global mandates, including Fidelity Global Balanced Portfolio, Fidelity Global Income Portfolio, and Fidelity Global Growth Portfolio. The Delta variant continues to have more of an impact on the Emerging Markets regions that are less vaccinated. The variant is limiting economic growth from both policy perspective as well as hesitation of individuals to embrace real life again. David notes that inflation is a challenge as it negatively impacts stocks and bonds beyond a certain threshold. He says elements of inflation being both transitory and permanent will persist, and it won't be clear one way or the other. David urges investors to hold gold on the equities side of the portfolio and maintain government-protected securities on the bond side of the portfolio to protect against inflation.

Recorded on August 9, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-tulk-gaa-outlook-9aug2021.pdf