FidelityConnects

Today on the show portfolio manager Joe Overdevest sits down with host Pamela Ritchie to discuss trends in the third quarter and what investors could expect in the remaining quarter of the year and even into 2025. Joe says even though interest rate cuts are happening, investors are waiting for more certainty in the markets before buying. He adds that some people try to time the market, but companies over time grow their earnings and the stock price usually follows, which highlights the power of compounding. For 2025, Joe says the economic picture is looking decent. He says with high level of earnings growth for this year and next year at around 10% for the US and Canada plus inflation in Canada and the US trending close to 3% and GDP growth in the US at around 3%, the US and Canadian economies seem to be on the right path. Joe also highlights the current energy picture.  With a drop in oil prices and fading optimism around China's efforts to boost its economy, this has weighed heavily on energy and materials.  He says the demand for commodities will be higher in the future and China is currently 10 to 50% of the demand depending on the commodity. Nuclear could be a solution for an energy transition, but it will take time. Joe adds natural gas could be a short-term solution for increasing electricity demand.   Recorded on October 9, 2024.   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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

From corporate earnings, to the inflation story and the upcoming US Presidential election, there are many themes affecting the markets today. Scott Mensi, Institutional Portfolio Manager of Fidelity’s Tactical High Income fund discusses how the portfolio pivots in today’s current market environment. Scott says since the spring, the fund has adjusted and invested in non-US equities, REITS, high yields and convertible bonds. The fund typically holds 45 % in equities. He also highlights the fund’s ability to move between different asset classes based on market conditions aiming for better downside protection and rebound potential. Scott also talks about the fund’s evolution over its 10 years. He says the fund continues to be an income solution that can invest in equities, investment grade bonds, bank loans and preferred securities. He adds the fund provides full-circle returns and risk rewards as well.   Recorded on October 8, 2024.    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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

On today’s podcast, we’re bringing you another installment in our “Behind the Numbers” series, where Chris Pepper, VP, Corporate Affairs, sits down with Fidelity’s portfolio managers, analysts, subject-matter experts, and more, about what brought them into investing and what drives them every day. In this episode, recorded at Fidelity’s Boston headquarters, we hear from Denise Chisholm, director of quantitative market strategy, and Ramona Persaud, portfolio manager. You'll hear about Ramona & Denise's career paths, as well as how their friendship grew over the years, and how they currently work together. 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

On September 24, Fidelity Investments Canada hosted FOCUS 2024 Montreal – a bi-lingual event connecting our portfolio managers directly with advisors. For French podcasts from the event, please keep an eye on our DialoguesFidelity podcast, those will be released soon. Portfolio manager Connor Gordon’s session is today’s podcast, and we’ll hear about how small cap companies could play a big role in your investments. Connor manages Fidelity Global Small Cap Opportunities Fund alongside Chris Maludzinski, and today he provides a fund update to the live audience, and host Charles Danis, VP Regional Sales Eastern Canada. They touch on market volatility and what we’ve seen in markets so far this year, and in prior cycles. Connor notes this volatility creates buying opportunities, which him and Chris look to take advantage of in Fidelity Global Small Cap Opportunities Fund, which was launched in September 2022 and is also available as an ETF. Recorded on September 24, 2024. 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

On September 24, Fidelity Investments Canada hosted FOCUS 2024 Montreal – a bi-lingual event connecting our portfolio managers directly with advisors. For French podcasts from the event, please keep an eye on our DialoguesFidelity podcast, those will be released soon. Today’s podcast brings you Adam Kramer and Scott Mensi’s session from the event, focusing on fixed income, and their fund Fidelity Tactical High Income Fund, managed alongside Ford O’Neil and Ramona Persaud. This event was a homecoming for Adam, portfolio manager, who is originally from Montreal and shares a bit about his journey that brought him to Fidelity in Boston. Among other topics he also shares how the fund is built and has had a strong process driven approach over time. Scott, institutional portfolio manager, shares the various asset classes that make up the fund, and how those have shifted over time. Please note, there were a few charts shown to the live audience during the event. Recorded on September 24, 2024. 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Following Friday's U.S. jobs numbers that were well above estimates, a soft landing appeared more within reach than ever. With strong labour numbers and a seemingly resilient economy, is there room for the bull market to continue?  And what about Q3 earnings season? Can earnings maintain market momentum? Back on the show today to take us through these questions and many more, is Fidelity Director of Global Macro Jurrien Timmer. Jurrien emphasizes that while earnings are still growing, the acceleration may be slowing, which could affect momentum and stock prices, especially in popular sectors like AI. He notes that we're currently in the mid-stages of the current bull market, but rising interest rates could limit the upside. Jurrien and host Pamela Ritchie also talk about the valuation of emerging markets, particularly India, and the issue of stock dilution. Jurrien explains that while the U.S. market tends to reward shareholders more through buybacks and returns, emerging markets have historically diluted shareholder value, which affects their P/E ratios. Despite this, he believes that emerging markets will remain attractive due to various growth factors.   Recorded on October 7th, 2024.   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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Today, Denise Chisholm joins us on the program for a deep dive into the factors shaping today’s markets. She discusses the recent US Vice-Presidential political debate as well as the influence of taxes and commodities on the market. Denise talks about the vice-presidential debate and describes it as neutral and lacking new information. She emphasizes that political leadership, while a major talking point, often has minimal long-term impact on markets. She notes that historically, markets perform better with divided governments and tends to discount political changes before they happen, reducing volatility. Denise also touches on geopolitical risks and the potential for an oil price shock. She says that while Middle East tensions can drive oil prices up, a true risk to the economy would only emerge if prices hit $160 per barrel. At those points, the impact on corporations and consumers would be significant enough to pose recession risks. Shifting to gold, Denise points out that while gold prices are inversely related to interest rates, gold equities don’t always outperform when gold rises. Instead, she sees better opportunities in sectors like financials, real estate, and industrials, especially if those sectors are poised for recovery.   Recorded on October 3rd, 2024.   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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

Joining the show today for a discussion on where they're finding growth opportunities as we enter the fourth quarter, are Fidelity U.S. Growth Opportunities Class portfolio managers Kyle Weaver and Rebecca Baker.  Kyle and Rebecca focus on identifying long-term growth opportunities, even in controversial or volatile market conditions. Their investment approach often revolves around understanding secular growth trends, like AI and e-commerce, and finding the right business models to capitalize on them. Kyle and Rebecca underscore the complexity of investing in large themes like AI and the importance of selecting the right companies with sustainable business models. They explain how past technological shifts, like in wireless data, provide valuable lessons for navigating AI investment. Their discussion with host Pamela Ritchie also touches on other sectors where they are seeing opportunities, like solar energy, which could be influenced by political outcomes, industrial companies that stand to benefit from AI innovations, and used car retail, which is being transformed by online research and e-commerce growth. Kyle and Rebecca advocate for a balanced approach, where long-term growth themes are assessed alongside short-term cyclical factors to optimize their investment strategies. Take a listen.   Recorded on October 2nd, 2024.   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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

In today’s episode, Portfolio Manager Dan Dupont provides an overview of how navigating the current market landscape and offers insight into various global trends and sectors. Dan discusses investment opportunities in China, where large-cap stocks are severely undervalued. With minimal downside risk, these investments rebounded faster than expected, and Dan’s patience has paid off as he’s been able to capture quick gains once the market corrected. Dan also discusses challenges in the U.S. market. He touches on the difficulties of finding attractive investments in a space characterized by high valuations and inflated margins. This has driven him to focus on global opportunities and more defensive sectors, where strong balance sheets offer stability in uncertain times. Recorded on October 1st , 2024. 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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.

The global economic cycle may be due for a rebound. As September ends, the S&P, DOW, and NASDAQ are all up more than 1.5 percent on the month. And stocks in China surged over 8 percent for the country's best day in 16 years. So, going into Q4, where do we go from here? Back on the show today to unpack the latest market action is Fidelity Director of Global Macro Jurrien Timmer. Jurrien explains the complexities surrounding the concept of R-Star, the neutral interest rate, and emphasizes the challenges in determining whether the Federal Reserve's policies are restrictive or neutral, given the current economic context. Referencing plenty of economic data as usual, he highlights that the markets appear to be pricing in a soft landing scenario, with stable fundamentals and increasing earnings growth, while uncertainty about the upcoming U.S. elections adds complexity to market leadership. Jurrien and host Pamela Ritchie also discuss shifts in the labor market. The key question seems to be whether the Fed can maintain the current balance in the labor market without triggering a more significant economic downturn, as shifts in employment rates could lead to a different phase in the economic cycle.    Recorded on September 30th, 2024.   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 a fourth year in a row, FidelityConnects by Fidelity Investments Canada was ranked #1 podcast by Canadian financial advisors in the 2024 Environics’ Advisor Digital Experience Study.