Denise Chisholm

Welcome to the podcast.

I'm Denise Chisholm, Fidelity's Director of Quantitative Market Strategy.

And I'm Brad Pinault, the Head of Capital Market Strategy for Fidelity Institutional.

Look, we both look at the market through slightly different lenses, right?

I think it's going to complicate the United States dealing with the rest of the world because they're going to say to themselves, if two countries as close as Canada and the United States historically can't come to an agreement, What real hope do we have? I mean, you can exaggerate this reaction, but I do think people are going to be saying to themselves, oh, for the love of God, if those two can't get together, you know, we're living in a very troubled world.

So we were joined mid-month by Denise Chisholm, Director of Quantitative Market Strategy, and she says the bigger market story may be the remarkable persistence of volatility rather than inflation itself.

Denise shared that while markets continue to climb, investors are navigating one of the longest stretches of elevated turbulence on record, adding that volatility often creates opportunity, noting that periods of heightened market swings have historically been followed by strong returns.

Take a look.

And Iron Ice Gas says that this has been one of the most persistent stretches of market turbulence on record, even as stocks continue to climb.

So is volatility a warning sign or an opportunity? Why does this cycle feel so uncomfortable ultimately? And what does history say about returns after periods just like this? Joining us here today for another edition of Sector Watch is Denise Chisholm.

She is Director of Quantitative Market Strategy.

Hi, Denise.

But who knows? That was not how he was received by markets, it seems.

It definitely wasn't how he's received.

And maybe if we go back to, you know, let's put aside Denise Chisholm's opinion about how he did and think through what usually happens in the year following a new Fed chair, you do usually see more bond market volatility, about 30% to 50% more bond market volatility.

It's not particularly meaningful to the equity market, which is why I don't talk about it a lot when I look historically.