By Ryan Jennings
(October 5 – 17:45 ET) – The volatile markets are here to stay, but that doesn’t worry portfolio managers with Fidelity Investments Canada Ltd, the country’s fourth-largest fund company. In fact it’s what spurs them on.
The mood was that of cautious optimism at the Fidelity World Market Forum National Satellite Video Conference, broadcast live earlier today from Toronto to 16 cities across Canada. The four Fidelity fund managers who spoke predict a slowdown, but offer some encouraging advice.
In many respects market volatility is coming back into line, where it should be. Flightiness with individual stocks has been rising over the last 20 years but that just means there’s a greater need for diversification says Alan Radlo, manager of Fidelity True North Fund, Fidelity Canadian Growth Company Fund, and the equity portion of Fidelity Canadian Asset Allocation Fund.
Radlo suggests advising clients to invest for long-term growth and to expand their portfolio into international markets as a means to safeguard it. Investors should also take advantage of dips and jumps in the market to exercise the old strategy of buying low and selling high.
The conference also stressed that investors can’t expect the type of returns they’ve been reaping over the last two years, and this has to be relayed to clients.
Rising oil prices shouldn’t scare off investors either, if the price holds firm. The economy will eventually reach an equilibrium with the higher cost says Steve Snider, portfolio manager for Fidelity Growth America Fund. He also sees opportunities for growth in the industry with new refineries, tankers and service companies being in demand once production levels get up to speed again.
“You can’t know everything so keep with the things you do know and you’ll come out okay,” says Snider.