Under Construction: Building Resilient Client Portfolios – Paul Ma

Today on the program, we welcome back Paul Ma, Vice president and lead portfolio strategist. He talks about where we are in the business cycle and what this means for portfolio construction. Paul comments on a running theme in the markets right now that he says is the “fear of missing out.” He believes investors will look back on the market last year where US equities were up 26 percent and not want to miss on that this year. He says inflows are now into equity.  If investors have missed out on a previous rally, clients are more willing to put forth their money because they do not want to miss out again.  He adds people are getting more comfortable with the fact that the Fed wants to cut rates. The key thing now is not how many times the Fed will cut, but that they are at a point of pausing, which indicates they are soon ready to cut. Paul says this makes it a great time to invest. Paul says the recession numbers are slightly above consensus. Therefore, quality is a better option right now than growth. The market right now is in a good place, where GDP is around 2% and inflation around 3, so until inflation changes, quality is the better choice. 

Recorded on April 2, 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 the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.