Investing offers tremendous opportunities and risks. Although there is risk in trying to predict any administration’s impact on the markets and its sectors, this month I’m introducing a new sector factor, which I’m going to call Trump +/-, to give you a quick way to assess the potential pluses and minuses for each sector. Also, I’m going to kick off our monthly parade of fund reviews for the year by focusing on Fidelity’s large-cap value and large-cap blend funds. The extent to which a fund owns the certain “value” sectors could give a fund exposure to a Trump tailwind in 2017. Plus, in 2017, an increased probability for a healthy pullback and concomitant buying opportunity recalls to mind a quote from Benjamin Graham that I find particularly apt today: “In the short run, the market is a voting machine, but in the long run, it is a weighing machine.” Finally, you’ll find this month’s FI Tactical Opportunity picks as well as the latest Fidelity-related news. Read more
This trade-shortened week has seen another run of record market highs and headline lows. In fact, today it looks like the Dow is set to close up for the 10th day in a row. Experience tells me that the farther out on a rally’s limb we go, the greater the chance of the branch-breaking increases. But with our own economy being well defended by the Fed and spurred by full employment and a healthy consumer, it’s hard to make the case betting against more gains—here and now, but also when (not if) the current rally’s branch does, in fact, break. Read more
Strong January retail sales and a strong upward revision to December retail sales reflect a U.S. consumer that is confident, willing and able to spend, making this month's FSI Focus especially pertinent. This month, I delve deep into the consumer staples sector, which produces the kinds of things we need no matter how strong or weak the economy is, rather than the kind of discretionary purchases we want but can do without when times turn tough. While Fidelity doesn’t have an extensive lineup of consumer staples funds, it more than makes up for this in the quality of its options. I also introduce a new sector this month called "Trump +/", which gives you a quick way to assess the potential plusses and minuses for each sector, including consumer staples, under the new administration. And as always, I have this month's Tactical Opportunity picks and relevant Inside Fidelity news. 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||1.8%||10.5%|
|Annuity Growth & Income||2.2%||7.8%|
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.