Fidelity Update: Post US Election Commentary

The Kelland Portfolio Management Group

November 10, 2016

Dear Valued Client’s

Following the results of the US election, please find below some videos and articles from a few of our global Fidelity partners.

Steve MacMillan – Fidelity Portfolio Manager (American Equity Fund, Small Cap America Fund)

  • Taking a longer-term fundamental perspective, Steve believes that this initial surprise will eventually wash away in the market (will become priced in, similar to Brexit)
  • Historically, a Republican sweep of the White House, Senate, and House of Representatives has been business-friendly (more spending)
  • Forecasting political events is extremely difficult and we will be active in the markets to continue buying stocks that we like

CLICK HERE to view Steve’s video.

Dan DuPont – Fidelity Portfolio Manager (Canadian Large Cap Fund, NorthStar/NorthStar Balanced, Monthly Income Fund, Income Allocation Fund)

  • This is a very exciting time according to Dan, as he watches for opportunities to deploy his cash into the markets
  • Continue to not try to predict the unpredictable
  • Take advantage of others selling off to buy fundamentally-strong companies at cheaper prices

CLICK HERE to view Dan’s video.

Dominic Rossi – Fidelity CIO Global Equities (London/Hong Kong)

  • Now is not the time for knee-jerk reactions; investors must remain calm and not be drawn to short-term noise
  • Trump’s plans to inject significant fiscal stimulus could put pressure on any interest rates increases in the short-term
  • Single-party control of both Houses offers an opportunity to break the political gridlock of recent years

Shahira Knight – Fidelity Government Affairs (Washington, DC)

  • Legislative action will be complicated by thin Republican majorities and policy differences within the party
  • The Republican sweep will bring renewed interest in tax reform
  • A shift toward regulatory relief is expected
  • The Republicans still lack the 60 votes needed to pass most legislation in the Senate, making it a bit more difficult to pass sensitive policies

Lisa Emsbo-Mattingly – Fidelity Research and Economist (Boston)

  • Trump’s win could send temporary shock waves throughout global stock and bond markets
  • Markets should quickly price in new information and shift focus towards how Trump’s policies might impact the economy
  • Investors must be prepared to weather a potential negative environment for equities and fixed-income (downside protection)