Don Newman, director of research, and portfolio manager of Fidelity Dividend Plus Fund, continues to monitor the markets very closely as the severity and swiftness of the downturn has surprised investors. Prior to the current market downturn, Don had been cognizant of the length of this market cycle with the markets reaching historical highs, primarily off multiple expansion as opposed to quality earnings growth. In that market environment, Don had been taking below average risk. Although the current situation in the market, with regards to COVID-19 and the oil shock, has been unexpected, Don notes that selective individual stock valuations do look much more attractive now.

Recorded on April 29, 2020.