Many investors have been shaken up by rising concerns about the Covid-19 Delta Variant. Recently, these concerns have affected investors’ outlook on bonds. Fixed Income portfolio manager, Jeff Moore, joins us to share his unique perspective on the global fixed income markets, inflation, and monetary policies. Jeff manages the Fidelity Multi-Sector Bond Fund, Investment Grade Total Bond Fund, and several other income mandates. Jeff notes that over the long term, stocks go up, but you must be willing to take drawdowns. He says bonds play a role in the 60/40 portfolio as bonds are designed to go up in value when stocks go down. He highlights that bonds are meant for diversification. Jeff says that inflation is tough to get. He believes that financial markets should be concerned about inflation when the Fed has to raise rates. Jeff also shares his thoughts on the Chinese bond markets noting that China is growing slowly because of demographics, and as a result, he’s not overly excited.

Recorded on July 21, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-moore-fixed-income-monthly-21jul2021.pdf