Today on the program, we welcome VP of Products Andrew Clee to the show. Andrew gives listeners an overview of the markets – where we are at, why we’re in the most “discounted recession” in history and how the US and Canadian economies differ at this time. As the year slowly wraps up, Andrew reflects and says 2023 was all about inflation, interest rates and an impending recession. But interestingly, you put them all together and the Nasdaq is still up 30%, S&P 15% so risk assets are still behaving and so there is a lot of negative headlines in the market. He adds this is the most “discounted” recession in history because historically you didn’t really know that we were going into a recession, but now everyone expects it and is waiting. But the recession will be influenced by rates. If interest rates are higher for longer, Andrew says consumers will have to dial back their spending behaviors which will hurt the economy. Andrew touches on the housing situation and mortgage market in Canada and the US. In the US the mortgage is fixed and non-portable, whereas in Canada rate resets every 5 years and is portable. He adds the US consumers don’t really care except if you are looking to move or buy a new house, they only care about their lifestyle choices versus in Canada we care about when interest rates go up.

Recorded on September 25, 2023.

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.