Despite the ongoing terrorist attacks and targeted violence abroad and at home, I remain focused on the market-moving facts on the ground: Economic data, earnings reports, interest rates, and stimulus actions and results. This doesn’t mean that the markets are immune to short-term, event-driven disruptions—they remain as prone as they have ever been, as we’ve seen recently. This month, our focus is squarely on the international side of investing, an especially challenging sector of the market to invest in with the Brexit vote still looming large in the rear-view mirror. To help guide your hand, I have a fund-by-fund review of Fidelity's roster of active and index-driven diversified international funds. I've also got an interview with one of the brightest and best-informed voices on investing overseas, Jed Weiss of International Growth (among other funds). And finally, with the July second-quarter earnings floodgate fully open, I take some time in this month's lead story to give you my read on the half-year performance of some of the bellwether companies you'll find in the funds we own. Read more
Unlike last week, this week has seen several key economic reports, which I’ll get to in a minute, and little market movement … it’s a typical late summer marketplace where the heat is keeping many traders out of its kitchen. No single sector has stood out on the gain or losses front. No market has emerged in a spectacular surge or recession from peak levels or recent highs. Let’s start with the Fed’s FOMC minutes from their July meeting. The Fed seems to be, despite a rebounding jobs market data, splitting in favor of more, not less, caution thanks to known bugbears, the soft global economy chief among them. But those minutes don’t reflect the latest upbeat jobs data, housing reports, and consumer income, spending and savings numbers, which continue to suggest that we’re on a growth incline, not a recessionary decline. Read more
August continues to be a ho-hum marketplace, which is fine by me. After several weeks’ worth of market-moving reports, a breather is welcome—especially if there is the downside protection of no new major negative news or catalysts. Of course, the catalyst of event-driven news hangs in the balance of any given day and is one reason why FSI’s portfolios are designed to stay diversified and be flexible enough to hunker down should such news linger long enough to turn into a negative sector-specific or macro-market trend. But right now, FSI’s portfolios are remaining more positioned for gains than defense. 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%||10.2%|
|Annuity Growth & Income||2.0%||7.0%|
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.