In this month’s issue, we ring in the New Year with an expanded issue, where you’ll find two exclusive interviews with one of Fidelity’s best mega-cap and large-cap managers and one of Fidelity’s best diversified growth and non-bond income managers. Speaking of managers, I’ve also included the names of my manager picks for 2016 Manager of the Year and Most Promising Manager for 2017. Also, after taking a break in 2016 to review and revise my longstanding Hot Hands strategy, I’m reintroducing the momentum-based strategy, whose 2017 pick is an index fund with an edge. Lastly, you’ll find my annual Year in Review chart (my map of the markets and the main events that moved them), which tells the story of markets in 2016. Read more
Unsurprisingly, as we head into and through tomorrow (Inauguration Day), the markets are jittery. They’d be jittery after the remarkable post-November election rally even if there wasn’t a scheduled changing of the guard at the White House … but, of course, there is one. And, of course, the one we have ahead of us is itself full of the potential for more surprises. Markets tend to hate surprises—but the biggest surprise of all was how the market reacted to the biggest surprise of 2016. Read more
Markets hate surprises—but the biggest surprise of all was how the market reacted to the biggest surprise of 2016, and how it continues to roil because of a tweet or a quip from the man taking our highest office tomorrow. In such quick, quip-driven temper tantrum markets, FSI’s completely quantitative, cool and calculating discipline and purely math-based trading system will remain a key friend and ally to your more diversified portfolio. 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||5.6%||11.0%|
|Annuity Growth & Income||0.2%||8.2%|
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.