Jurrien Timmer, Director of Global Macro, notes that 91% of stocks in the S&P 500 are above their 50-day moving average. To Jurrien this demonstrates a robust early-cycle bull market. Jurrien also looks at the big inflation question being discussed now - with inflation coming and an accommodative Federal Reserve, is inflation really going to be transitory or will it be structural? Additionally, Jurrien uses Japan as an example to show that money printing does not automatically have to lead to currency debasement or hyperinflation. Jurrien also presents some new findings on cryptocurrency trends, demands and comparisons to gold. With the recent momentum surrounding cryptocurrencies, Jurrien thinks the development of official digital currencies from central banks (Federal Reserve, European Central Bank, etc) may not be far off. For more of Jurrien’s findings follow him on LinkedIn, or Twitter @TimmerFidelity.

Recorded on April 12, 2021.

On this episode, we welcome Bobby Barnes, Head of Quantitative Index Solutions and Vivian Hsu, Director of ETFs and Liquid Alternatives, to the show.  Bobby and Vivian help map out where flows are headed as the market reaches what seems to be a global economic expansion.  Bobby says right now we are in the early cycle of the market and that tends to be a tailwind for things like value and dividends.  He says if investors want to be opportunistic, they can make tilts in their portfolios to these stocks.  Vivian shares where she thinks flows are going and that’s into equities.  Fixed income flows are positive, but have had a tougher first quarter.  ESG inflows year-to-date are at $2.8 billion in Canada and this has already surpassed the 2020 full year ESG inflows of $2 billion. 

Recorded on April 9, 2021. 

Portfolio Manager Jed Weiss looks at the global industries and sectors primed for recovery as economies find themselves in different stages of the reopening trade. Jed manages Fidelity International Growth Fund, and shares that he is starting to find opportunities in India, noting valuations have improved. He says that emerging markets investing can be compelling as the dynamics of specific countries are different, but EM countries tend to be looked at grouped together. China, Brazil, South Africa and Turkey for example, are all classified as emerging markets, but have very different fundamentals. Jed has been with Fidelity since 1997, and he spent time running an emerging markets fund for U.S. investors. Jed is currently finding opportunities in Japan, Switzerland and France, and his main focus is on companies with strong multi-year structural growth and attractive valuations.

Recorded on April 8, 2021.

Andrew Marchese, CIO and Portfolio Manager, reflects on market trends through the first quarter and discusses how he is approaching the second quarter and the year ahead. As CIO, Andrew oversees the Fidelity Canada investment team, and also manages Fidelity Canadian Disciplined Equity® Fund. Andrew’s process with respect to earnings forecasts, involves looking at a company years out, and on a stock-by-stock basis. Also, Andrew shares how Fidelity analysts establish price targets for every company, accounting for earnings and other factors. Andrew is currently recycling cash from names that have already participated in market uptick to new names that haven’t yet participated and have a strong outlook as economies reopen.

Recorded on April 7, 2021.

Institutional Portfolio Manager Tom Rollins provides an update on Fidelity U.S. Growth Opportunities Class and what to look for as the vaccine rollout accelerates in the U.S. Tom works closely with portfolio manager Kyle Weaver, and explains they aim to use volatility to their advantage, and mainly search for companies with good cash flows and earnings. So as a result, it is less likely for Kyle and Tom to make big bets on lower-quality companies. Today, Tom reflects on the last year, noting the winds have changed, in that the big secular winners looked great off the market bottom, but are now expensive. Tom and host Pamela Ritchie also look at e-commerce, healthcare, inflation, and IPO (initial public offering) investing.

Recorded on April 6, 2021.

Jurrien Timmer, Fidelity’s Director of Global Macro, shares his thoughts on what’s moving the markets around the world, to help you be better prepared for what may be next. Today, Jurrien looks at U.S. jobless numbers, noting that jobless claims moved to the six millions at the start of the pandemic. It’s back down to around seven hundred thousand now, but it’s still not at pre-COVID levels. Jobless numbers and stimulus are connected, and Jurrien believes that the Fed is correct in its messaging about keeping interest rates low. Jurrien also comments on emerging markets, inflation, and the rotation towards value. Jurrien notes that a barbell strategy between value and growth is common. Follow along with Jurrien’s charts @TimmerFidelity on Twitter.

Recorded on April 5, 2021.

We welcome back Denise Chisholm, sector strategist, for another instalment of her sector watch. Denise shares that the United States is currently leading with the amount of stimulus delivered, and based on that fact, will likely lead in terms of economic growth delivered. Denise also explains that she sees U.S. small caps being dominant in market leadership, based on relative valuation and growth data. Looking at emerging markets, Denise believes emerging markets have outperformed on the margin, and the risk/reward for EM relative to the market and other regions is negative. Denise explains that she believes the risk/reward for gold and silver is still positive. Also, focusing on specific sectors, energy and financials are continued to be viewed favourably by Denise.

Recorded on April 1, 2021.

In the 16th episode of the Fidelity ETF Exchange - powered by FidelityConnects, co-hosts Étienne Joncas Bouchard and Himesh Patel sat down to recap notable trends and headlines in the Canadian ETF Industry for the first quarter of 2021. Some of the key topics discussed include the continued growth in the Multi-Asset segment, the rise in ESG ETFs, the style rotation taking place in the factor space, among others.

Recorded on March 31, 2021.

Chris Pariseault, head of fixed-income and global asset allocation institutional portfolio managers, looks at the current macroeconomic backdrop and how investors should be thinking about their fixed income allocations amid a low-yield environment. Fidelity's fixed-income solutions leverage the expertise of experienced portfolio managers who are backed by teams that specialize in a wide range of Canadian and global fixed-income asset classes. Chris and the team have been through several different market environments and have stuck to the same 5-step process: focusing on the current macro environment, looking at the specific sectors, asset allocation, security selection, and portfolio construction.

Recorded on March 30, 2021.

Portfolio Manager David Way discusses opportunities in liquid alternatives as an emerging asset class. David shares how Fidelity Long/Short Alternative Fund is designed to work at times of volatility and notes where a liquid alts strategy could fit in an investor’s portfolio. Fidelity Long/Short Alternative Fund is primarily focused on North America, which accounts for about 90% of the Fund’s holdings. David believes there is opportunity to add alpha here because of a reemergence of the commodity cycle. He notes that the Fund is for investors who are optimistic about the future. David can fully invest in his ideas for long positions. In fact, the structure of the Fund allows him to own 130% of assets in long positions: he can own 30% more of his “best” ideas, because he can also short the “worst” ideas. Currently, inflation is on everyone’s mind, and David notes that it is important to be macro aware, but he focuses on companies name by name and analyzes their risk and potential for future outperformance.

Recorded on March 31, 2021.