Don’t Expect a Major Correction

Fidelity’s Maxime Lemieux acknowledges the market has had a significant bounce but there is still room to run.

Michael Ryval 12 August, 2021 | 1:46AM
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Canadian markets have had a significant rebound since the coronavirus pandemic struck in March 2020, yet veteran stock picker Maxime Lemieux argues there is still room to run as the economic cycle remains strong. At the same time, the manager of the $5.7 billion 5-star silver-rated Fidelity True North Sr F maintains that a focus on quality companies is the key to future returns.

“We came out of a universal phenomenon where the pandemic was a once-in-a-lifetime event, which brought an end to the business cycle in a very deep way,” says Lemieux, Montreal-based portfolio manager with Fidelity Investments ULC who joined the firm in 1996 as a research associate and in 2009 assumed Fidelity True North. “Then we saw the most dramatic V-shaped recovery that I have ever seen in my career. I’d like to say that in the short-term valuations don’t always matter. As Warren Buffett has said, ‘in the short term the market is a voting machine.’ But in the long run, valuations do matter---because valuations become more normalized.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
CGI Inc Class A116.37 CAD0.00Rating
Fidelity True North Sr F61.34 CAD-0.22Rating
London Stock Exchange Group PLC7,826.00 GBP0.00Rating
Thomson Reuters Corp115.03 USD0.00Rating

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Michael Ryval  

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