After a divisive election and an existentially divided electorate, there’s not an investor I know who isn’t thankful for the market’s unified, record-setting gains. The same can be said for our growing economy; at or near full employment, with wages rising, post-election consumer confidence is surging. Thanks to increased consumer, business and government spending, the latest revision to third quarter GDP shows our economy delivering its best pace in two years. That pace keeps our Fed on track to deliver their second rate hike on December 14. Of course, we haven’t advanced one iota from wondering to knowing what a Trump presidency and his potential policies will look like, let alone what they will do to the economy and markets. In this month’s issue, I turn to who and what we definitely know: The managers in our model portfolios. I dive deeply into each manager, from their role in the FI portfolios to their past track record and current positioning. Also, you’ll find trades in nearly all of our model portfolios, designed to help us benefit from the economic environment ahead. Read more
This week’s raft of meaningful market data suggests that our economy is gaining enough speed (from jobs, to income, to confidence) to make a Fed rate hike look like a lock on December 14. Recall that such a rate hike is a sign of confidence in our economy’s ability to grow. Net-net, a growing economy bodes well for business, and what bodes well for business bodes well for long-term investors like us. Read more
One week after the sea change election, fear of Trump and assumption about Trump policies is moving some investors to take action. My view: The fear of Trump’s policies is largely and loosely based on assumptions about what those policies may or may not be and what the outcomes of those assumed policies may or may not be. In contrast with those suggesting you make moves based on what no one knows, FSI’s proven tactical investment discipline and trading track record should continue to reward us with reasonable near term defense, and solid long-term offense. This month's issue is loaded with my analysis of what a Trump presidency might or might not augur—and what changes it's already made to the market landscape, still a couple of months out from Inauguration Day. 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||4.3%||10.9%|
|Annuity Growth & Income||0.9%||7.9%|
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.