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
All week long there has been a lot of hype around tomorrow’s Chair Yellen speech at an economic summit in Jackson Hole, Wyoming. There’s been correlated hype around the possibility of a rate hike when the Fed meets next in September. Concerning these issues, my view remains the same: The Fed will raise rates when they are certain that our economy is in strong enough shape to grow more organically on its own despite whatever list of impactful concerns there may be. 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.