FidelityConnects

On today’s show we welcome back income investing portfolio manager Mark Schmehl. Mark manages several funds, including Fidelity Canadian Growth Company Fund, Fidelity Global Innovators Class, and Fidelity Special Situations Fund. During these uncertain times in the market, Mark is focused on investing in the tails - cheap, boring tech stocks that pivot to AI companies and achieve significant earnings, or clear winners. He says the economy is clearly slowing down, but this is the most widely expected recession, which has not occurred so far. But his funds aren’t focused on the macro environment, he says. It’s a distraction from what’s really important. He adds, interest rates are not typically a factor in his investment decisions, but he is still mindful of it. Mark’s Global Innovators fund is a play on AI exposure. He says the early part of this cycle is going to be driven by investment; similar to when the internet came out. We know AI build will happen, but we don’t know who will be the one to build it. He adds an early part of the AI wave is deploying hardware to make it work. In the future, software is the clear beneficiary. Mark believes Companies will invest in AI at massive scale for the next 10 plus years.

Recorded on September 12, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today on the program, we welcome back Fidelity’s Investment Director Tom Stevenson as discusses the impacts of rate hikes, inflation, and housing on different economies around the world. Tom comments on the effects of rates hikes on GDP and if that could in fact lead to an inflation lead recession. He explains how this is a big puzzle firstly for central banks and it is what the Fed has been grappling with for so long. They just don’t know what the cumulative impact will be after all these rate hikes. In the UK, Tom says you are starting to see in the housing market for example, and other areas of the economy as well, a real slowing down in the economy, which could indicate that the wind is catching up with all those interest rate hikes. The danger he says is that you keep hiking, and it just becomes counterproductive, and you unnecessarily push the economy into a recession. But now, it looks like the markets have regained their poise and have bounced back really quite nicely, placing itself in this type of Goldilocks economy of “not too hot not too cold.” Tom also discusses China’s slower than expected growth, Japan’s unexpected economic climb, and how that all could affect global economies. He also touches on the UK job market and the state of consumer confidence. He says we are seeing quite a strong wage growth in the UK, which is one the key drivers of inflation. He adds that going to be make it harder to squeeze inflation out and the interest rates are going to have to stay higher as a result.

Recorded September 6, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

On today’s show we welcome former Premier of Alberta the Honorable Jason Kenney. His current position is as senior advisor at Bennett Jones. He speaks to host Pamela Ritchie about his current position, his time as Premier of Alberta and Canada’s longest serving immigration minister, and also his thoughts on government spending and affordable housing. Jason Kenney says this is the first time since post-war history and perhaps modern history where the emerging generation is facing a diminished standard of living compared to their parents. Home equity is out of reach for 90 per cent of young Canadians. He says broadly across Canada this is a cost-of-living crisis. He explains his thoughts on attracting investment and business noting that Canada is attracting less and less foreign investment and to him this is a warning signal. He says policy is driving business away.

Recorded on September 13, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Sarah Hoffman, Vice President of AI and Machine Learning Research, joins host Pamela Ritchie today for a look at how artificial intelligence and machine learning is affecting investing today. Sarah unpacks the latest trends, concerns and issues surrounding AI and the effects it has on companies, people and the overall economy. She notes that Open AI recently released an enterprise-friendly version allowing companies to use the technology more seriously. So how does this relate to security concerns? Sarah points out that generative AI can alleviate data security concerns for companies, but despite improved security, challenges like fabrications, legal issues, and data ownership require attention before adoption. Sarah also touches upon emerging digital financial technologies and how it could change the way we invest and think about money and she also addresses AI in the workplace and how it could affect training and employees.

Recorded on August 30, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Head of Quantitative Index Solutions, Bobby Barnes joins us on the show today to unpack the latest moves in the U.S. equity markets, lower than expected initial jobless claims and rising oil prices and how he’s navigating it all through factor investing. In terms of the current economic cycle, there are mixed signals, Bobby points out. He says some think we’re at the beginning of a bull market and economic activity is going to be accelerated but Bobby is in the camp of a late cycle playbook rather than something that looks and feels like an early cycle. Turning to factor investing, Bobby looks at various drivers of risk and return, including the value of a company, the performance of its stocks, and its profitability over time. He says the way to think about factors is that they are simply a characteristic of stocks. The way to use factors in your portfolio is through structural allocation, a cyclical approach and as a way to fine tune the risk return profile of a portfolio.

Recorded on September 8, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Institutional Portfolio Manager Ilan Kolet joins us on the program and walks us through the inflation story, the resiliency of the market, and how the Canadian consumer is faring in this current market environment. Ilan is part of Fidelity’s Global Asset Allocation team. He says the team expected to see stress in the Canadian economy but that does not seem to be the case. The Canadian Household has also been more resilient than the team would have expected. He says two major things have contributed to the sustainability of the Canadian Consumer – excess savings built up during the pandemic and generational transfer of wealth. But the question remains – when will this cushion of savings run out? The GAA team predicts the middle of 2024. Ilan looks ahead to the Bank of Canada’s upcoming rate announcement and believes until the BOC sees cooled housing, spending, and employment, we can expect further rate hikes. He also gives an overview of the team’s asset allocation – adding that they continue to be underweight Canadian and US equities and overweight international and emerging markets. On the bond side, they are underweight investment grade, overweight credit and spread factors and of course, inflation protected bonds.

Recorded September 5, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Fidelity Director of Quantitative Market Strategy Denise Chisholm is back on the show today, to share her insights on the current market movers, and the sectors she's keeping an eye on. Denise discusses her views on the recent statements by Fed Chair Jerome Powell at the Jackson Hole Economic Symposium, and shares some potential implications she could see this messaging having on the markets. She highlights that the level of interest rates matters less than the reasons behind rate changes. She believes that if higher rates are driven by economic growth, this can be generally positive for the equity market. Denise also provides insights into the relationship between inflation, wages, and the labor market, highlighting the importance of real wage growth for the market's performance, and touches on the resilience of the banking sector in the face of rising interest rates, noting that consumer strength plays a crucial role in supporting banks.

Recorded on August 28, 2023

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Fidelity equity research analyst Nic Bellemare and equity research associate Connor McGrath join host Pamela Ritchie on the show today to discuss what's shaping the Canadian financial industry, the impact of the Jackson hole Symposium, and what would an extended rate cycle mean for real estate sectors. Nic and Connor unpack the implications of Powell's remarks on Canadian markets, and also take a look at the impact of the broader current economic environment on the specific sectors of Canadian real estate and financials, and the role of regulations in shaping these industries. They emphasize the importance of monitoring credit conditions, housing supply, and demand dynamics, as well as the influence of interest rates on financial and real estate markets. They both also highlight the potential for investment opportunities within the financial services sector, particularly in companies that can navigate challenging environments and capitalize on market dislocations. Among other topics, Nic and Connor also touch on the impact of remote work trends on the commercial real estate sector, sharing some of the operational challenges and the impact of rising vacancy rates on Canadian commercial real estate.

Recorded on August 25, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

On today’s program we highlight the European markets with Fidelity Europe Fund Portfolio Manager Matt Siddle. Matt speaks to host Pamela Ritchie about the macroeconomic landscape, including the long-lasting impacts of the COVID-19 pandemic, stimulus measures, and inflation. Matt emphasizes the wide valuation gaps in various sectors, particularly in consumer staples, and highlights opportunities in mid-cap stocks. Speaking on his investment approach, Matt mentions that his strategy is not purely value or growth oriented, but instead seeks companies with a good mix of quality and attractive valuations. He says that he is currently excited about finding undervalued businesses in this market environment. Matt also touches on the importance of pricing power for businesses in managing costs and maintaining profitability, unpacks the factors influencing the energy sector, sharing how energy prices relate to cost inflation, and notes some attractive opportunities in banks due to rising interest rates.

Recorded on August 24, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.