FidelityConnects

In this episode, we speak to Director of quantitative market strategy Denise Chisholm as she provides her insights on what sectors to keep an on eye on plus what recent data point are telling us about the current market environment. Denise believes we have experienced what she calls a very soft-hard landing and she argues that we are now in the early stages of a recovery. Denise discusses the market’s reaction to recent market volatility and says the market is very data-dependant, but daily data points and moves are not very predictive of market returns. She says it’s important to step back and assess all data and any anomalies. Denise says people tend to focus on CPI movement, but she says it’s more important to focus on the standard deviation of the year-on-year inflation rate, which has fallen to the bottom half of its historical range. Denise highlights shelter costs pointing out that shelter is the main reason inflation remains high.  She adds, outside of shelter, the Federal Reserve doesn't have an inflation problem - the year-on-year rate, excluding shelter, is below 2 percent. So how does the inflation story affect how investors should consider sectors? Denise says interest-rate sensitive sectors like financials and real estate are something to consider as the current risk-reward is skewed to the upside.  She says defensive sectors such as consumer staples, healthcare, and utilities face margin and profitability issues. And she says the technology sector offers both offence and defense with strong free cash flow.

Recorded on June 13th, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

In this episode, we speak to portfolio manager Darren Lekkerkerker to get an update on the North American Equity Class, his thoughts on the current market environment, and what industries are market drivers in his mind. Darren says the economy continues to be resilient even though rates have not come down as expected earlier this year. Company earnings have accelerated, and we’ve seen differentiation between sectors and within sectors. Darren says this environment has been good for him because he is primarily a stock picker where he focuses more on the micro side rather than the macro environment factors. In terms of his investment style and stock picking strategy, Darren continues to look for high quality companies that have a competitive advantage, that are growing over time and have demonstrated superior return on invested capital, ideally rising over time. Darren adds that technology and AI are big market drivers and what he’s focuses on the fund. He owns software - constellation software, Microsoft and Nvidia. He is also invested in the industrial sectors including engineering and design companies. He believes they will benefit from massive fiscal infrastructure acts in the US. Darren points out he doesn’t hold any Canadian banks in his fund. At the moment, he is nervous about the Canadian economy compared to the US. He is concerned about the Canadian consumer since they are more interest rate sensitive than their US counterparts and because of our mortgage market structure in Canada.

Recorded on June 12th,  2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

In this episode, Christian Leuprecht joins us to dive into the geopolitical discussions at the upcoming G7 summit, focusing on foreign policy, economic growth, and geostrategic dynamics. Christian notes key agenda items such as enhancing security, prosperity, and democracy on the international front. He discusses topics such as the current relationship between Canada and the U.S., and what the upcoming elections mean from the macroeconomic perspective. He examines rising economic tensions, such as China’s relationship with Taiwan, and the current supply chain disruptions in the Indo-pacific region. He also talks about what the broader implications are for geopolitics, hybrid warfare, and economic integration with countries such as Russia and North Korea.

Recorded on June 11th, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

In today’s episode, we are joined by Chief Investment Officer and Portfolio Manager Andrew Marchese who discusses current market conditions, which includes the Bank of Canada’s recent decision to cut interest rates, the implications of rising inflation and unemployment, and how the speed and magnitude of future rate cuts will depend on upcoming data. Andrew talks about how this year has been a stock pickers market, and how it’s heavily influenced by overall corporate profits and macroeconomic indicators. He discusses the importance of a bottom-up strategy in portfolios moving forward. Andrew also takes a closer look at commodities in the markets prolonged late cycle, and how some sectors are facing a supply shortage with the current rising global demand. 

Recorded on June 6th, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

In today’s episode, we are joined by Equity Research Analyst Evan Zehnal and Equity Research Associate Vishal Chopra to discuss the evolving AI landscape and its growing impact across the investing sector. Evan talks about the current AI narrative, its impact and benefits, and how AI is being used by companies. Vishal expands on the shift in corporate budgets over the last two years, how companies aim to tighten their spending, and what these implications are for AI’s adoption. Evan and Vishal both discuss the role of blockchain in the authentication process, and how to ensure data reliability.  They touch on questions including how are companies using these measures amid pricing and cybersecurity concerns?  Evan and Vishal also discuss the current artificial pull and push of the software cycle, and how companies are looking to branch out from some of the main semiconductor providers.

Recorded on June 7, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

On this episode, we sit down with portfolio manager and director of research Reetu Kumra. She talks to host Pamela Ritchie about the future of cryptocurrency in Canada, trends in alternative investing, and highlights the Canadian Long/Short alternative fund. Reetu says the crypto market is very volatile, and interesting space.   Since 2023, there have been many changes in the ecosystem including bitcoin halving and bitcoin and Ethereum ETFs being approved in the US. She says bitcoin has become a store of value, showing high correlation with gold in this de-dollarization and debasement movement. Reetu views Bitcoin and Ethereum as diversifiers in a portfolio, as she sees them to be in their very own asset class. She believes adding a 1 to 3% slice in your portfolio can tremendously improve your risk-adjusted returns, signifying it as a true diversifier. Reetu also reminds the audience of the Canadian Long/Short Alternative fund she launched earlier this year. It’s a 130/30 long-short product leveraging Fidelity’s research platform and focusing on Canadian Equities. She adds the investment process involves comprehensive analysis and extensive access to company management, ensuring robust and accurate assessments.

Recorded on June 5th, 2024

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Today on the show, we sit down with long-time contrarian investor Hugo Lavallee as he discusses a wide range of topics including commodities, equities, how he’s managing his climate leadership  fund plus his contrarian style of investing in today’s current market environment. Hugo comments on commodities and says he’s treating all commodities equally. But he notes he owns more metals than energy. Canadian oil looks better on a relative basis, but unfortunately the world is shrinking so to him it’s easier to be positive on metals specifically copper. He says we need demand to come back on the commodities side, but if we get that cyclical rebound in demand, we will need to pay more attention to commodities. Hugo talks about infrastructure spending and how it’s a super bullish trend right now. He touches on telco and says it’s a battleground for stocks right now. For him, he views it has having two ponds – one pond where you can grow your earnings 10% a year, and the other is where you think companies can grow their earnings 15 to 20% a year. Hugo would rather dip into that pond. He explains how he looks at stocks and which companies to invest in. He’s always following great businesses. Then something happens to that company. Typically, what happens is margins get crushed, and they are under earning. Then he uses the luxury of time, which a lot of competitors are not afforded. He adds it’s very difficult to have the vision that things will get better over the span of, say, two years. But it’s that specific set up that he feels differentiates him from others and is what he’s looking at all the time.

Recorded on June 4, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

In this episode, ETF Strategist Vince Kraljevic joins us to explore the changing landscape of investment strategies, and the current business cycle. With tech becoming the new dominant sector, Vince discusses how advisors are increasingly tilting away from mega, large, and mid-cap stocks - and how diversification and reducing exposure to certain names has become a priority. He also touches on Fidelity’s ETF products, and how the recently launched all-American  ETF is weighted for the factors in the current business cycle. He also discusses how these allocations are expected to perform, and the performance of other Fidelity ETF products. Vince also talks about the differences between ETFs in the US market, active versus passive ETFs, and advice for those looking to utilize ETFs effectively. 

Recorded on May 31st, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.