Despite horrific weather, port shutdowns, strong dollar headwinds, and soft patch concerns, the U.S. economy keeps sailing ahead. The bar for the April flood of Q1 earnings reports was set low, but we did not see a dramatic compression of earnings growth rates. In the meantime, we'll continue to do our best to keep calm in unsteady waters. In this month's issue, I review the mid-cap funds in Fidelity's stable that I think are worth your money. There is no other fund company on the planet that provides as many well-managed, unique mid-cap fund offerings as Fidelity does; you could own several at once, and if past is prologue, trounce the performance of a mid-cap index fund. You'll also find an interview I conducted with Joel Tillinghast, manager of Low-Priced Stock, where we talk about valuations, global approaches, and what worries him most in today's marketplace. Read more
As we head into a long weekend, the markets at home and abroad continue to exhibit signs of slow growth, not no growth. Over the span of this week, we have seen the European Central Bank (the equivalent to our Fed) announce that they will accelerate their stimulus actions through bond purchasing—a sign that they are determined to not let their nascent success get derailed, but also a sign that they need to accelerate stimulus in order to offset potentially slower growth. 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
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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.