FidelityConnects

Mark Schmehl, portfolio manager of Fidelity Global Innovators Class, Fidelity Canadian Growth Company and Fidelity Special Situations Fund, discusses his thoughts on the recent tech sell-off and the upcoming U.S. election. He also discusses the biggest trends in today’s market, including work-from-home, ESG and travel, and how they affect his portfolios. Mark looks for fast growth, and companies that are disrupting industries. His portfolio turnover has always been around 200% yearly. He is constantly moving things around and sifting through various ideas to find what works best for him at any given time. Mark believes that whether or not the coronavirus is here to stay, WFH is no longer cyclical, but rather a new way of working. Companies have to enable their entire workforce to WFH at least a few days a week, and he is doubtful this trend will go away once the virus goes away. Technology such as Zoom will still be relevant, and he thinks many of the other changes we’ve seen as a result of WFH will also be permanent. Also, Mark is interested in searching globally for different themes. He is more interested in thematic and secular change than in specific geographic areas. 

Recorded on September 10, 2020.

How will the outcome of the 2020 U.S. election affect financial markets? Fidelity’s panel of experts Portfolio Manager Jeff Moore, Sector Strategist Denise Chisholm and Senior Vice President of Government Relations Jim Febeo share their thoughts and insights on how markets are navigating an unpredictable election campaign and how would a democratic or republican presidency affect global economies. Denise says there are a lot of fear and uncertainty right now; however, once the answer is given, a fog will be lifted, and we could see higher returns due to more certainty.  She add it’s important for broader-based investors to take a step back and not bet your portfolio on the election. Jeff Moore points out that if it’s a Biden presidency, sectors could be vulnerable or benefit depending on how Biden puts people in place. He says some of the biggest questions after the election will be - what are the new policies that will be in place? How big will the tax increase and how fast will it come? And Jim Febeo  sheds light on what we might not see coming. He says if Biden wins, it will most likely be Democratic senate.  He can see a broad agenda being pushed through - tax policy, health care, environmental policies through legislative channels. 

Recorded on September 9, 2020.

Portfolio Manager Adam Kutas gives an update on frontier and emerging markets and where he is finding opportunities. He explains how emerging economies are recovering from an unprecedented slowdown in the wake of the global pandemic. He discusses bigger picture ideas like FinTech, the need for stronger domestic pharmaceutical companies, supply chains, and energy.  Adam believes Africa is one of the few economies with traditional consumer growth, even though penetration of consumer goods is very low compared to other countries. He has been increasing his exposure to Africa over the past couple years. He also points out that India remains the biggest market outside of North Asia, having done well over the past decade, although could have future issues with inflation.

Recorded on September 3, 2020.

An expert panel discussion, led by Portfolio Manager Joe Overdevest, with a deep dive into real estate, insurance, banks, diversified financials, consumer discretionary and communication services.

 

Recorded on August 25th 2020.

Fixed income portfolio manager Sri Tella discusses what he has been observing as the Canadian economy reopens and where new opportunities for investors are appearing. Sri reflects on the policy changes at the Bank of Canada and the Federal Reserve (the Fed) he has been observing, and considers how these changes will affect the Canadian bond landscape as the economy reopens. Sri believes the government is trying to provide more transparency regarding central bank and monetary policy, including measuring inflation and the ideal inflation rate. The average person is considering what he or she is spending money on – such as food – and believes prices will go up. However, inflation appears to be either in decline or stagnant. The big question is whether the Bank of Canada is measuring inflation appropriately, given the changes to consumption habits – which the Consumer Price Index is supposed to reflect.

Recorded on August 28, 2020.

Vice President of ETFs Andrew Clee and Vice President and Lead Portfolio Strategist Paul Ma discuss growth versus value amid the COVID-19 pandemic and how these trends have progressed historically through past recessions. They both share points on how they would position portfolios during the recovery from the global pandemic, how to diversify away from the U.S. election volatility, and where to find opportunities across the globe.

Recorded on September 2, 2020.

Portfolio manager David Tulk discusses the market implications and impact of the U.S. 2020 elections in November and potential investor reactions as governments try to blunt a resurgence of the COVID-19 pandemic. The Federal Reserve (the Fed) is now allowing inflation to run hotter, with the goal that average inflation will, over time, reach the Fed’s target. The decision reinforces the fact that interest rates will remain very low for quite some time. Inflation can create some challenges for a traditional 60/40 portfolio: the negative correlation between stocks and bonds, on which a 60/40 portfolio depends, could turn positive, which in turn can hurt diversification. To help protect portfolios against inflation, David notes that on the fixed income side, the team is investing in real return bonds in Canada and TIPs in the U.S., and on the equities side, in gold. David believes it’s important to be flexible when defining your portfolio, and to keep liquidity on hand so that you can add to positions that offer an opportunity, especially in times of market volatility. Diversification among different asset classes and geographic areas is also important.

Recorded on August 27, 2020.

Institutional portfolio manager Scott Mensi breaks down the opportunities in high-yield markets following the global pandemic and suggests where investors could benefit from ongoing volatility. Scott discusses his two-year approach to investing in high-yield loans, with a focus on companies with strong liquidity profiles. Scott has been looking at a variety of industries, and in particular, gaming and telecom companies that have done very well due to COVID-19. Based on demographic trends and current rates, Scott does not expect the loan or high-yield market to shrink any time soon. We no longer have third- and fourth-tier players issuing loans in high-yield bonds, and we have much bigger companies using these markets for financing purposes.

Recorded on August 26, 2020.

Matt Siddle, portfolio manager of Fidelity Europe Fund, discusses what a resurgence of COVID-19 cases in parts of Europe could mean for their economic rebound, and which countries and sectors investors are turning to for relative safety and growth potential.

Recorded on August 21, 2020.”

Bruce MacDonald, portfolio manager of Fidelity Far East Fund, describes China’s response to the coronavirus and where he believes the Chinese economy will focus post-pandemic. Bruce is in Hong Kong, and witnessed first-hand China’s move into lockdown; he notes that the population took it seriously. At the regional and central level, government took thorough control of movement and demonstrated a very coordinated and consistent approach in how much money it invested in the economy to help recovery and in its positioning coming out of lockdown. Countries that had a good reaction to the first wave and locked down are seeing cases start to pop up again. No one wants to go back to a total lockdown, and some countries are implementing stricter policies to avoid this. Bruce notes that many countries are adjusting their stimulus programs this time around to target specific parts of the economy, instead of individuals.

Recorded on August 20, 2020.