Of all the investment lessons we can take away from March, two stand out. First, our diversified offense and defense continue to make headway despite the drag of our overweight healthcare stake. Second, fundamentals continue to be challenged but not trumped by headline volatility and real and threatened terrorist impingements. The world remains a topsy-turvy place. The markets do, too. With no new major positive catalyst, and elevated levels of earnings (earnings reporting season begins on April 11), economic, and geopolitical concerns, being as smart about our defense as we are about our offense will be key to our short- and long-term investment success. In that light, this issue provides another exclusive FI Interview with Steve Buller, who runs Fidelity’s Real Estate Investment fund. You’ll also find my FI Fund Focus on Fidelity’s large-cap value and large-cap blend funds, a group that tends to play in often unloved, overlooked, and underestimated fields. One of these is my Tactical Opportunity for short-term offense this month. You’ll also find a reminder of the recommended trades for my Aggressive Growth, Growth and Growth & Income model portfolios I announced in the latest Hotline. Read more
In terms of the market, this week the earnings report floodgate opened, but the steady stream of bellwether reports we’ve already seen have projected the quarter’s earnings theme: Slow growth challenges here, comingled with slowing-to-no growth challenges elsewhere, continue to challenge managements’ bottom line and top-line skill sets across a spectrum of industries. Even though we are seeing an earnings recession that suggests more growth won’t come easily, I’m confident that a no-growth environment can still be averted. Read more
After budding gains in March, April's markets have reflected a muddy economic landscape. FSI's weekly Hotlines have been keeping you abreast of the range of issues our tactical portfolios have been contending with—including terrorist attacks, concerns over an earnings recession turning into an economic recession, Chair Yellen's moderately more dovish take on the next interest rate hike, as well as Eurozone and Japanese central banks taking measured steps in words and deeds to reassure their own economies and the global one that they have the smarts and firepower to stave off recession. As you know, my view is that the massive global stimulus efforts haven't yet caught on in terms of delivering more, let alone better growth—but they may have reduced the risks of a global recession … or at least forestalled it. This month's issue features my FSI Sector Focus on the financial sector, with a review of Fidelity's several open-end funds (and one ETF) in that space. In addition, you'll find my exclusive interview with Joe Wickwire, portfolio manager of Select Gold since 2007, where he talks about the precious metals industry and helps answer when, how much, and why to consider adding his fund and other precious metal assets to your 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||-0.4%||8.8%|
|Annuity Growth & Income||-3.0%||5.6%|
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.