Institutional portfolio manager Naveed Rahman shares his outlook for 2021 on investing in global small caps and describes the fund positioning for Fidelity Global Intrinsic Value Class. Naveed believes value will make a comeback. The market moves in cycles, and things that worked before might not work in the future – and, he notes, we have never seen fiscal and monetary stimulus working together in any previous market correction the way they have been during the past few months. Naveed and Joel Tillinghast, with whom he manages the Class, have some concerns about tech: valuations are elevated, and the consensus forecast for earnings in the sector is slowing. The prospect of higher regulations and higher taxes for tech companies over the next five years is not reflected in the sector’s current valuations.

Recorded January 15, 2021.