FidelityConnects

Institutional Portfolio Manager Ilan Kolet and SVP of Asset Allocation Research Dirk Hofschire discuss what rising inflation means for investment portfolios and asset allocation. Ilan talks about the dangers of inflation shock, noting that we should be more concerned with the medium-term, underlying inflation that could change things. Dirk also adds that we are currently in an environment where it is difficult to tell whether the growth is real or it is inflation since inflation is difficult to measure.  Additionally, they discuss the degree to which equitable policies are sustainable and offer insight into how real assets may play a part in asset allocation with respect to inflation protection.  Dirk comments on the economic reopening saying he believes there are many potential tailwinds as consumers are ready to spend and release their pent-up demand impulses.  

U.S. President Biden’s first months in office have been historic. He has issued more executive orders than his three predecessors combined, signed a $1.9 trillion stimulus package into law, and the proposed 2022 budget calls for $6 trillion in total spending. We are joined by Director of Global Macro, Jurrien Timmer, and VP of Digital Advocacy and Policy Communications, Greg Lowman, to discuss what this new economic environment means for investment portfolios going forward. Jurrien notes that the change in P/E has peaked, and the change in earnings has bottomed out. As a result, we are now transitioning from early-cycle to mid-cycle. He says structural inflation would be a big deal for the market because it would change the traditional 60/40 approach, noting that 60/40 only works in positive, low inflation environments. Greg discusses the possibility of debt ceiling costs, noting that political realities have hardened in a more partisan way since 2011. There is still a gap of approximately 6% between the unemployment rate and the full employment rate. Jurrien believes that policies will be kept loose until this gap is more or less closed.

Recorded on June 2, 2021.

U.S. President Biden’s first months in office have been historic. He has issued more executive orders than his three predecessors combined, signed a $1.9 trillion stimulus package into law, and the proposed 2022 budget calls for $6 trillion in total spending. We are joined by Director of Global Macro, Jurrien Timmer, and VP of Digital Advocacy and Policy Communications, Greg Lowman, to discuss what this new economic environment means for investment portfolios going forward. Jurrien notes that the change in P/E has peaked, and the change in earnings has bottomed out. As a result, we are now transitioning from early-cycle to mid-cycle. He says structural inflation would be a big deal for the market because it would change the traditional 60/40 approach, noting that 60/40 only works in positive, low inflation environments. Greg discusses the possibility of debt ceiling costs, noting that political realities have hardened in a more partisan way since 2011. There is still a gap of approximately 6% between the unemployment rate and the full employment rate. Jurrien believes that policies will be kept loose until this gap is more or less closed.

Recorded on June 2, 2021.

The world economy is making a comeback. However, we are hitting bottlenecks that increase commodity prices and create transitory price pressure. Mark Schmehl, portfolio manager, joins us today to provide insights on the reopening trade and market themes he is watching in the second half of 2021. For Canadian investors, Mark runs Fidelity Canadian Growth Company Fund, Fidelity Special Situations Fund, and Fidelity Global Innovators Class. Mark updates host Glen Davidson on what has changed in his portfolios over the last few months. He believes we may stay in a long protracted economic expansion for years, where rates get higher and cyclical stocks continue to work. Mark shares that his top 3 sectors currently are industrials, resources, and financials. Additionally, Mark believes Canada specifically is a strong market currently, and the overall world economy is in a good place. Mark doesn’t focus on a specific geographic region, he looks for good ideas wherever they may be.

Recorded on June 1, 2021.

The world economy is making a comeback. However, we are hitting bottlenecks that increase commodity prices and create transitory price pressure. Mark Schmehl, portfolio manager, joins us today to provide insights on the reopening trade and market themes he is watching in the second half of 2021. For Canadian investors, Mark runs Fidelity Canadian Growth Company Fund, Fidelity Special Situations Fund, and Fidelity Global Innovators Class. Mark updates host Glen Davidson on what has changed in his portfolios over the last few months. He believes we may stay in a long protracted economic expansion for years, where rates get higher and cyclical stocks continue to work. Mark shares that his top 3 sectors currently are industrials, resources, and financials. Additionally, Mark believes Canada specifically is a strong market currently, and the overall world economy is in a good place. Mark doesn’t focus on a specific geographic region, he looks for good ideas wherever they may be.

Recorded on June 1, 2021.

Today, portfolio manager Dan Dupont reflects on how he first got into investing, which was sparked from growing up on a farm and analyzing the farm’s accounting. Dan shares with host Emily Anonuevo how this lead to analyzing businesses and their finances, and ultimately investing in companies, which he has been doing now at Fidelity for 20 years. Dan manages several funds and private pools, including Fidelity Canadian Large Cap Fund for the last 10 years. Dan explains his investment approach and his rigorous focus on protecting capital, being patient and not trying to predict the unpredictable.

Recorded on May 28, 2021.

Today, portfolio manager Dan Dupont reflects on how he first got into investing, which was sparked from growing up on a farm and analyzing the farm’s accounting. Dan shares with host Emily Anonuevo how this lead to analyzing businesses and their finances, and ultimately investing in companies, which he has been doing now at Fidelity for 20 years. Dan manages several funds and private pools, including Fidelity Canadian Large Cap Fund for the last 10 years. Dan explains his investment approach and his rigorous focus on protecting capital, being patient and not trying to predict the unpredictable.

Recorded on May 28, 2021.

Aujourd’hui, l’animateur Charles Danis accueille le gestionnaire de portefeuille Daniel Dupont, qui gère le Fonds Fidelity Grande Capitalisation Canada et cogère plusieurs autres Fonds et Mandats privés, dont le Fonds Fidelity Étoile du Nord. M. Dupont dévoile ce qui l’a incité à se diriger vers les placements dans sa jeunesse, notamment l’analyse du bilan comptable de la ferme où il a grandi. Au fil du temps, cela l’a amené à évaluer les finances d’autres entreprises, puis à investir dans celles-ci, chose qu’il fait chez Fidelity depuis une vingtaine d’années. M. Dupont partage également son approche en matière de placement et explique qu’il se concentre sur la préservation du capital, fait preuve de patience et n’essaie pas de prévoir l’imprévisible.

Date : 26 mai 2021

Aujourd’hui, l’animateur Charles Danis accueille le gestionnaire de portefeuille Daniel Dupont, qui gère le Fonds Fidelity Grande Capitalisation Canada et cogère plusieurs autres Fonds et Mandats privés, dont le Fonds Fidelity Étoile du Nord. M. Dupont dévoile ce qui l’a incité à se diriger vers les placements dans sa jeunesse, notamment l’analyse du bilan comptable de la ferme où il a grandi. Au fil du temps, cela l’a amené à évaluer les finances d’autres entreprises, puis à investir dans celles-ci, chose qu’il fait chez Fidelity depuis une vingtaine d’années. M. Dupont partage également son approche en matière de placement et explique qu’il se concentre sur la préservation du capital, fait preuve de patience et n’essaie pas de prévoir l’imprévisible.

Date : 26 mai 2021

Catherine Yeung, Investment Director at Fidelity International, shares her insights on trade in the Asia-Pacific region, the shift to value stocks, and the progress and impact of the vaccine rollout in this region. In 2019 and 2020, returns in China were underpinned by a narrow rally in key sectors such as biotech and big tech. Catherine says there seems to be a pull of the pendulum back to some of the big Tech household names to some degree. She notes that China is moving away from traditional e-commerce to a more interactive e-commerce platform. Catherine discusses debt markets, noting that the main concern is inflation and the argument of whether it will be transitory or permanent. She believes the U.S.-China relationship and the competitiveness between these two nations are not going away anytime soon. Therefore, we are going to have periods of volatility as these trade negotiations play out.

Recorded on May 28, 2021.