FidelityConnects

Portfolio manager Steve DuFour has seen other periods of volatility in his 30 years of investment experience. Steve speaks with host Pamela Ritchie on how he is managing Fidelity U.S. Focused Stock Fund during this period of market volatility, as people are trying to understand the economic impacts of COVID-19. With an investment approach of “growth at a reasonable price”, Steve is using this market correction to upgrade his portfolio.

Recorded on April 2, 2020.

Catherine Yeung, Investment Director, is based in Hong Kong, and joins us today to discuss the state of both Asia-Pacific and global markets after the correction caused by COVID-19. Catherine shares what lessons the rest of the world could learn from Asia’s experience in navigating COVID-19, as different countries transition through escalation, consolidation and recovery.

Recorded on April 1, 2020.

What pressing issues are on the tax horizon in light of the COVID-19 crisis? Fidelity Canada’s Vice-President of Tax and Retirement Research, Peter Bowen and Director of Tax and Retirement Research, Michelle Munro discuss changing policy and tackle questions that affect those approaching retirement, those already retired and those who are making a long-off retirement plan.

Recorded on March 31, 2020.

Joe Overdevest, director of research and portfolio manager, is confident the Fidelity ecosystem is built for this type of unprecedented disruption, thanks to Fidelity’s global reach, access to CEOs and technological capabilities, and he notes the current situation has not disrupted, but energized, the existing processes. With the type of indiscriminate selling the market has been seeing, he and other Fidelity portfolio managers have been leveraging each other’s insights to ensure no potential opportunities are missed. Joe is generally positive on Canadian banks, because the government has been cooperating and acting fast to support the economy. In global natural resources, companies with strong balance sheets and low valuations have been subject to the same indiscriminate selling, and this could lead to potentially great opportunities in pipeline companies and renewable energy names.

Recorded on March 31, 2020.

Jurrien Timmer, Fidelity’s Director of Global Macro, believes that while we are in a technical recession, we are not in a full-fledged business cycle downturn. Jurrien connects with us remotely from home, and notes there is likely more volatility ahead, until COVID-19 infections peak in North America. Jurrien explains that the indiscriminate selling we’re currently seeing is more typical of the end of a bear cycle than the beginning of one, and compares this to the 1987 crash, when panicked selling caused the market to fall to unprecedented levels in one day, a decline we’ve nearly managed to duplicate in a matter of weeks.

Recorded on March 30, 2020.

Portfolio manager Mark Schmehl thinks that active managers have the opportunity to find winners in these uncertain times and to position investors well for a market recovery. Mark explains that his current focus is finding companies that will perform well during the downtown of COVID-19. This includes technology companies and other businesses that will bounce back after a solution is found. Mark is actively looking at how technology companies can enable this new working world. These include video conferencing companies, such as Zoom, that have been performing well during this downturn because of increased telecommuting among the workforce.

Recorded on March 26, 2020.

Andrew Marchese, President and Chief Investment Officer at Fidelity Canada Asset Management, is optimistic that this unprecedented market correction, which has resulted in many securities being sold off precipitously, is an opportunity to look at companies with a clean slate and examine the true earnings power of a company relative to what has been priced into its valuation. In this episode, Andrew explains that Fidelity’s shopping list has expanded as a result of this correction, allowing for an increase in the breadth of potential for return from securities over the next few years. Andrew also reminds us that the market knows how to respond to good and bad news, but not to uncertainty. While he notes it is human nature to want to move to cash in times of volatility, doing so crystallizes losses and forces investors to make another critical decision about when to get back into the market. This leaves investors with the difficult task of trying to time the market, allowing room for poor decision making.

Recorded on March 25, 2020.

Steve MacMillan, portfolio manager, notes that the world is clearly changing very quickly. The final outcome of this global pandemic is unknown, and therefore the measures that will ultimately need to be taken and their impact on the global economy are also unknown. Steve tells host Pamela Ritchie that it is this uncertainty that is creating volatility in markets, because the range of outcomes is extremely wide. If the current situation proves to be short-lived, then there are a lot of good companies that are priced very cheap right now, and this will have proven to be one of the better buying opportunities in many years.

Recorded on March 24, 2020.

Portfolio manager Ramona Persaud has studied historical market events and recoveries. Today she joins us from her home in Boston to share a market overview for investors. She discusses best practices in navigating tough markets and shares how she is positioning her funds. Ramona also explains the importance of discipline, and working with an advisor to achieve long-term goals.

Recorded on March 24, 2020.

In this episode, Darren Lekkerkerker, portfolio manager, explains how he is navigating market turbulence. Darren speaks with host Pamela Ritchie remotely from his home in Toronto, and notes that there are some very attractive stocks with the potential for strong long-term returns that he is considering adding to his portfolio. Fidelity’s asset management team is dedicating their time to talk with CEOs and CFOs. Darren’s focus is on companies’ business models and financial statements. He is looking for high-quality and long-term-oriented companies with sustainable business models that are seeking to adapt their operations to minimize risks during COVID-19.

Recorded on March 23, 2020.