FidelityConnects

In the 18th episode of the Fidelity ETF Exchange - powered by FidelityConnects, co-hosts Étienne Joncas Bouchard and Himesh Patel welcome Michael Charanduk to the show. Michael is an ETF Analyst at Fidelity Investments Canada. Today’s discussions revolve around the performance of various investment factors during market corrections and recoveries.

Recorded on May 17, 2021.

We welcome Fidelity's Director of Global Macro, Jurrien Timmer, to provide his weekly macro view and market updates. Inflation is a hot topic, and it remains to be seen whether it is structural or transitory. Jurrien says there are 8 million jobs open in the United States, but there is a shortage of willing labour because people want to get paid more. He believes companies can pass these higher costs onto consumers who have the money to spend on higher prices. The U.S. dollar is now breaking down again, and he notes that the CAD looks strong against the USD. Jurrien also says flows into bond, equity, and money market funds are rising, and he provides his outlook on TIPS. Follow along with Jurrien's charts on Twitter: @TimmerFidelity

Recorded on May 17, 2021.

Tom Stevenson, Investment Director at Fidelity International, provides his view on the vaccine rollout, global trade, and economic policies. Many investors are particularly bullish on commodities. Tom provides us with a deeper dive into why commodities may well be in vogue. He notes that more than 80% of first-quarter earnings have been beaten, and 75% of revenue expectations have been beaten. Tom discusses traveling opportunities countries in European countries. Tourism is a vital part of Southern European economies; he says they missed those opportunities last summer and can’t afford to miss another summer. He also discusses cryptocurrencies and shares his thoughts on businesses leaving the UK.

Recorded on May 14, 2021.

Sector strategist, Denise Chisholm, joins us today to speak on the opportunities and risks in the market. The number of new jobs added was far below the expectations of the markets. Denise says job numbers, in general, are not her favourite measure as opposed to payroll numbers because they do not tell the whole story. Denise believes that high levels of volatility are expected to stick around for the short term. She explains technology stocks are beginning to underperform while cyclical sectors are starting to shine. She shares her thoughts on base materials like copper and whether markets outside of the U.S. are riper for value opportunities. Denise also notes that Energy, Industrials, Consumer Discretionary, Financials, and Technology sectors have positive risk-reward benefits from higher inflation.

Recorded on May 13, 2021.

In this episode, we are joined by fixed income portfolio manager Jeff Moore. Jeff runs the Fidelity Multi-Sector Bond Fund, Investment Grade Total Bond Fund, and several other mandates. Jeff explains that inflation is currently running high, but it is a challenge to determine whether this reflects activity from a year ago or today. He expects inflation is going to be in the 4 to 5% levels for a while. The bond market is fairly robust now relative to equities. He says that he is diversifying his portfolio, but nothing looks cheap at the moment. Jeff shares his views on the emergence of cryptocurrencies. Canadian housing rates are extraordinarily low, and a 1% change isn’t going to be devastating for borrowers. Jeff explains that for young people trying to buy homes, it’s a slightly different story. He also discusses immigration and birth rates as well as corporate markets and emerging markets.

Recorded on May 12, 2021

Portfolio manager Alex Gold joins us to share his insights on the global health care industry's future in the second half of 2021. Alex, who manages Fidelity Global Health Care Fund alongside Amit Lodha and Judith Finegold, says the U.K. and the U.S. have made great strides in the rollout of vaccines; conversely, there are significant issues in Brazil and India. Alex discusses the future of vaccines, as well as the team’s investing styles and sustainability in Fidelity Global Health Care Fund. He says that there is increasing speculation that drug prices will be lower since reforming drug costs is still on Biden's agenda. Alex also notes that innovation is still very concentrated in the U.S., but over the next 5-10 years, China will present many more opportunities.

Recorded on May 11, 2021.

In his weekly update, Director of Global Macro, Jurrien Timmer, joins us to discuss how recent events affect investor sentiment in the markets today. Jurrien discusses the disparity between the number of estimated jobs created and actual jobs created. Jurrien believes the extent and extremity of cryptocurrency success are primarily due to the liquidity of the environment. He says there seems to be a rotation between Bitcoin and Ethereum and mentions which one of the two is currently losing market share. Jurrien explains we are starting to see a comeback in the energy sector. WTI is up 65. Jurrien notes that the supply chain needs to be up and ready to go. He states that the overall trajectory of the U.S. dollar is trending downwards. Thus real rates are falling, so there is a solid bullish case for gold. Jurrien also discusses whether or not the events in May are short-term or long-term. Follow along with Jurrien's charts on Twitter: @TimmerFidelity

Recorded on May 10, 2021.

Investors continue to remain optimistic about the U.S. recovery as the vaccine rollout continues and some states reopen. Today, we welcome portfolio manager of Fidelity U.S. All Cap Fund, John Roth, to share his insights on whether investors should dial up or rein in U.S. exposure overall. John notes that macroeconomic data can be volatile and believes the market is looking for where the subsequent earnings growth will come. John addresses many important themes, including small-cap vs. large-cap and value rotation. He says that he approaches his portfolio from the bottom up since the more attractive areas tend to be areas where the market has forgotten for a while. John shares his thoughts on speculative activity in the market. The secular narrative now is that we won’t need fossil fuels in the future; however, John believes there are opportunities in Energy. He also walks us through how long the stimulus takes to work through the economy and notes that he is bullish on Canada.

Recorded on May 7, 2021.

Salim Hart, portfolio manager, and Naveed Rahman, institutional portfolio manager, share their perspectives on the growth of value stocks and provide an update on Fidelity Global Intrinsic Value Class which Salim manages with Joel Tillinghast. Naveed explains that they expect to see an increase in inflation rates and higher interest rates; this will benefit value stocks. Naveed notes that there has been much mispricing in the last 9-12 months. Attractive pricing is interesting to Naveed but is not always a reason to buy the stocks. They discuss an interesting anomaly the Fidelity research team uncovered in the market and how it reacted to this anomaly. Salim discusses what is attractive within international exposure and notes that the team embraces ESG, with governance being a big focus. They also discuss commodities and REITs (Real Estate Investment Trust).

Recorded on May 6, 2021.

In this episode, portfolio manager Jeremy Podger is back on the program sharing his insights on UK’s positioning in the global recovery from COVID-19. After strong first-quarter earnings in many regions, some investors believe we may have reached a tipping point. Jeremy, who manages Fidelity Global Fund, shares his thoughts on this debate. He also shares his framework for stock selection. He explains it's in three parts: change, value, and franchise. He believes that the fund is currently tilting towards value. He says that there is much supply coming in the green space, and we will see seasoned IPO's offer more secondary supply in the market. Jeremy believes that investing in companies that may not have the highest ESG rating encourages them to make positive changes. He discusses how mega cap stocks continue to soar and discusses the impact of the government-funded stimulus on the economy. Jeremy also discusses the classical relationship between bond yields and sector relative performance.