Geopolitics and geo-economics remain unsettling clouds over the marketplace. Realities on the ground continue to create uncertainty on a global scale: Will terrorism’s scope and scale increase? Will weak economies like Greece, Portugal, and Spain debilitate a tentative return to growth across the pond? Is China a source of global or localized concern? Will U.S. rate hikes mean the end of gains for stocks and the end of investing in bonds? Read more
For Fidelity Investor members, the sudden downdraft wasn’t good news, but it wasn’t unexpected. I have been noting for most of this year that I thought we were uncomfortably overdue for a pullback of 10% to 15% on what I sensed would be fear-driven selling. Read more
This week, we saw nothing of note from China, nothing of note from Europe, and nothing of real note from here. We did see Japan’s second quarter GDP contract 1.6%, but consensus had been looking for a contraction of 1.9%. The Nikkei rose on Monday, the day the GDP report was released, most likely on the assumption that bad news will mean more stimulus riding to the rescue. Based on today’s closing price, the Nikkei is down over 5% since Monday. 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||5.3%||14.1%|
|Annuity Growth & Income||6.5%||10.9%|
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.