Portfolio manager David Tulk joins us to discuss the economic implications of new variants, issues in emerging markets, and the impacts of rising inflation on global asset allocation. As a member of the Global Asset Allocation team, David manages many global mandates, including Fidelity Global Balanced Portfolio, Fidelity Global Income Portfolio, and Fidelity Global Growth Portfolio. The Delta variant continues to have more of an impact on the Emerging Markets regions that are less vaccinated. The variant is limiting economic growth from both policy perspective as well as hesitation of individuals to embrace real life again. David notes that inflation is a challenge as it negatively impacts stocks and bonds beyond a certain threshold. He says elements of inflation being both transitory and permanent will persist, and it won't be clear one way or the other. David urges investors to hold gold on the equities side of the portfolio and maintain government-protected securities on the bond side of the portfolio to protect against inflation.

Recorded on August 9, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-tulk-gaa-outlook-9aug2021.pdf