CNBC - June 19, 2017

A Swarm of Fears vs. Sweet Returns

July 2017

We have arrived at the official mid-year standpoint; gains have been the rule, optimism the exception. I see nothing in the current data and climate that suggests we won’t repeat that pattern in the second half of 2017. But getting to this mid-way point has been characterized by paying so much attention to what could go wrong that few investors I talk with are confident about anything continuing to go right. Fidelity Investor’s model portfolios continue to provide my best answer to such doubts.... Read more

So Far, So Good

July 20, 2017

You know that I often say, “earnings drive the markets,” and this week I’ve been paying heed to second quarter earnings reports and forward-looking guidance from companies like Charles Schwab, Bank of America, CSX, Alcoa, Microsoft and more. Is a company growing their profits, or seeing them recede? Is their report conspecific to their company, or reflective of a broader sector, market, or regional trend(s)? Are profits being delivered through greater sales or greater bottom-line cost cutting (e.g. layoffs)? Is the guidance reliable, believable and relative to similar companies within the industry and sector? These are all questions I look... Read more

So Far, So Good

In this issue, I focus on a sector that has been buffeted by recent negative overvaluation headlines—the technology sector. I also bring in veteran tech sector investor and manager of Select Technology (FSPTX), Charlie Chai, to thoroughly review the range of tech-related investment risks and opportunities as he sees them. Plus, I've made changes to my month-to-month Tactical Opportunities trade recommendations, including a brand new tactical offense pick. And, as always, I bring you up to insightful speed on material changes going on inside Fidelity in my Inside Scoop.... Read more

Fidelity Investor’s models have 6/30/17 year-to-date returns of between 3.7% and 11.9%. The average Fidelity investor’s portfolio gained 0.4% in June.
ModelYTD5-Year
(Annualized)
Global Quant11.1%13.9%
Aggressive Growth10.9%12.5%
Growth10.0%12.2%
Growth & Income8.5%11.3%
Income3.7%8.4%
Annuity Growth11.9%9.8%
Annuity Growth & Income10.3%9.1%

You don't want to own too many funds that are similar, but how do you tell?

A high correlation between funds may mean that your portfolio of funds is not as diverse as you might want it to be. While other tools may compare funds only to the S&P 500, you can use this tool to determine how closely the performance of one Fidelity fund tracks that of any other Fidelity fund. Compare all the funds that you own. To diversify, look for funds that have low correlation with one another.

Awarded ‘2016 Newsletter Honor Roll’ by the independent Hulbert Financial Digest

Jim Lowell is Editor-in-Chief of the award-winning independent newsletters Fidelity Investor and Fidelity Sector Investor. Through his newsletters, Jim advises individual investors seeking superior performance from their Fidelity investments. He has also written several books on investing, Investing from Scratch (revised edition, Penguin, 2006) and What Every Fidelity Investor Needs to Know (Wiley, 2007) among them. Read more

Say goodbye to Index funds and Hello to Actively Managed funds

Jim Lowell adheres to the Cardinal Rule of Mutual Fund Investing: Buy the manager! He makes sure his subscribers, also known as “Fidelity’s Fortunate Few,” are protected and invested in Fidelity’s best funds.

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Tap into the Wealth-Building Power of Sector Trading

These long-term sector investments are selected based on Jim’s proprietary Fidelity Sector Investor fund-scoring system and set to deliver big profits.

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