On today’s episode, Portfolio Manager Patrice Quirion who manages Fidelity Global Concentrated Equity Fund and Fidelity International Concentrated Equity Fund puts Global equities into focus. Patrice touches on inflation and says there is still work to be done to erase the perception of high inflation. This could mean to go higher or stay for a longer period. But Higher rates remain dependent on how the economy fares and if we see things deteriorate. And The risk-reward around cost of capital may cause defensive sectors to be more attractive with a slowing economy as well as bond proxies to be in a portfolio. As a contrarian investor, Patrice, says there might not be an outright dislocation but a more compelling risk-reward in parts of the market. He adds it would make sense to get into a defensive position where he can pull when it’s time to get into the offence. Patrice says the risk profile for equities is still higher than fixed income, but the compounding returns is more favorable, even on defensive stocks. He adds Dividend yields are still a little lower than long term bond yields; however, these companies are still going to grow long-term, but not at growth stock levels such as 10 percent.

Recorded on October 16, 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.