Fidelity Global Investment Grade Bond ETF Series L Trust · NEO:FCIG
Fidelity Global Investment Grade Bond ETF Series L Trust — Fidelity Investments Canada ULC — Investor Presentation (2025)
20 slides from Fidelity Global Investment Grade Bond ETF Series L Trust's investor presentation, 2025
Slide 1: Factors affecting stock prices and stock returns
Lesson 15 Factors affecting stock prices and stock returns © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 1
Slide 2: Minds on
Lesson 15 Minds on Think, pair, share: What factors affect returns for specific stocks? • Take 3 minutes to brainstorm in groups and record your responses • Share with the class. © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 2
Slide 3: Watch the Money Gains video and record additional factors
Lesson 15 Watch the Money Gains video and record additional factors affecting stock prices. https://www.fidelity.ca/en/investor-education/moneygains/ © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 3
Slide 4: Factors affecting stock prices
Lesson 15 Factors affecting stock prices © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 4
Slide 5: Supply and demand
Lesson 15 Supply and demand • Prices are determined by supply and demand • If more people want to buy a stock (demand) than sell it (supply), the price goes up. • If more people want to sell than buy, the price goes down. © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 5
Slide 6: Company profits and earnings
Lesson 15 Company profits and earnings • If a company does well, the stock price will likely rise. If not, it will drop. • If growth is expected, investors are willing to pay a higher price for the stock today. © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 6
Slide 7: Interest rates
Lesson 15 Interest rates • When interest rates go up, growth companies, stock prices tend to go down, because these companies are financed by loans. • Rising interest rates increase borrowing costs, which decreases profitability. • Lower interest rates make equities more attractive other asset class
Slide 8: Inflation
Lesson 15 Inflation • Inflation refers to the rate at which the prices of goods and services are increasing over time. This means that the purchasing power of your money decreases, and you need to spend more to buy the same things you could have bought for less in the past. • Inflation affects corpo
Slide 9: Government policies
Lesson 15 Government policies Examples • When governments cut corporate taxes, it increases corporate profits, which tends to increase investor sentiment and stock prices. • If the government imposes increased sales taxes on a product, e.g. cigarettes, stocks of producing firms will likely decrease.
Slide 10: The economy
Lesson 15 The economy • When the economy is doing well, and economic growth is high, stock prices tend to increase. • When the economy is slowing down, stock prices tend to decline. © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 10
Slide 11: The business cycle
Lesson 15 The business cycle • Tracks economic growth Four distinct phases: over time. • Some investments perform better than others depending where we are in the business cycle. • We can diversify investment portfolios with securities that are driven by different market conditions that pay off at d
Slide 12: Early cycle
Lesson 15 Early cycle • Economic indicators such as GDP and industrial production move from negative to positive and growth accelerates. • More credit and low interest rates aid profit growth. • Business inventories are low, and sales grow significantly. • Stocks that typically benefit most from low
Slide 13: Mid cycle
Lesson 15 Mid cycle • Typically the longest phase with moderate growth. • Economic activity gathers momentum, credit growth is strong, and profitability is healthy as monetary policy turns increasingly neutral. • Information technology stocks have been the best performers during this phase, with sem
Slide 14: Late Cycle
Lesson 15 Late Cycle • Economic activity often at its peak, implying that growth remains positive but slowing. • Inflation and interest rates typically rise. • Higher inflation negatively affects performance of longer- duration bonds. • Energy and utility stocks perform well. • Cash tends to outper
Slide 15: Recession
Lesson 15 Recession • Economic activity contracts, profits decline, and credit is scarce for businesses and consumers. • Stocks of companies that produce necessary items, such as toothpaste, electricity and prescription drugs, typically do well during a recession. © 2025 FIDELITY INVESTMENTS CANADA
Slide 16: Types of markets
Lesson 15 Types of markets • The bull – a bull market is the economy is doing well, GDP is growing, and stock prices are rising. The bull market charges ahead. • The bear – a bear market is the economy is bad, recession is looming, and stock prices are falling. A bear market hibernates and moves slo
Slide 17: Company news and current events
Lesson 15 Company news and current events • Current world events have an impact on the price of stocks. • After 9/11, airline stocks decreased in value. This was in anticipation of a drop in travel by consumers and thus a decrease in profits. • When Russia invaded Ukraine, most of the stock market f
Slide 18: How to compare companies of different sizes?
Lesson 15 How to compare companies of different sizes? • The price-to-earnings (P/E) ratio measures a company’s share price relative to its earnings per share (EPS). • Price to earnings ratio = market share price/earnings per share • Low P/E ratio is preferred. • A high P/E ratio could mean that a c
Slide 19: The stock market is hard to predict!
Lesson 15 The stock market is hard to predict! © 2025 FIDELITY INVESTMENTS CANADA ULC 2395500-v2025328 19
Slide 20: Case Study Analysis
Lesson 15 Case Study Analysis MicroTech Inc. is a microchip company that designs and manufactures advanced semiconductor products for various industries, including consumer electronics telecommunications, and automotive. As budding financial analysts, your task is to assess how different economic fa
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