The old saw “never short a dull market” proved it had teeth in August. August was a dull month: The VIX Index (a measure of implied volatility in S&P 500 stocks) traded near an all-time low, and for the month, the S&P 500 rose 0.1% while our stock-market-focused quantitative Global Quant portfolio rose 0.6%, Aggressive Growth rose 0.2%, and our Growth portfolio rose 0.1%. I don’t expect September, or for that matter the rest of the year, to be quite so easy going, but I suspect our portfolios will continue to show relative strength. Right now, our income-oriented portfolios are faring very well. They are benefiting from an environment that continues to surprise the people who told you to sell your bonds and bond funds at the beginning of last year and this year, but which hasn’t surprised me. Read more
As far as the markets are concerned, it looks like this week’s first presidential election debate is already old hat. Thankfully, that means today and for the remainder of the week, rhetoric has a diminished chance of getting in the way of the facts. I think that holds true for next week, too. Tomorrow, we’ll see how the four wheels of our consumer-driven economy are turning: Personal income, spending, savings, and sentiment. This data gives me a forward-looking view on how the U.S. consumer and our consumer-driven economy are likely to fare on the near-term road. Read more
Last Friday’s (September 9) swoon delivered some knock on rounds overseas—but no knockouts. Don’t be surprised if such selloffs, such minor selloffs, trigger more major concerns within your investing mindset. The psychological imprint of the Great Recession created a remarkable divergence between, on the one hand, historic gains and, on the other, heightened unease and uncertainty about them. I do not know anyone who feels blithely confident that this bull market will run unimpeded for months to come, let alone years to come. In this uncertain environment, FSI continues to stay focused on the facts it knows and the investments its proven, quantitative investment discipline suggests. Read more
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
|Growth & Income||5.7%||11.3%|
|Annuity Growth & Income||2.4%||8.1%|
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.