May's market continued to melt up, climbing Trump's wall of worry and also shifting from the fear of a Fed rate hike to the acknowledgement that such a rate hike would signal enough sustainable growth to warrant it. It didn't hurt that there wasn't any major negative news or surprises from the global markets. And maybe, just maybe, there will be fewer political qualms before the fall's frenzied mudslinging. (One can hope.) Of course, we have to get through a few months before we even get to the vaunted foment that is the November presidential election. Meanwhile, June holds two key, potentially market-moving events—the United Kingdom's EU referendum and the June Fed meeting. Read more
Fear trumped facts as the UK voted in favor of leaving an economic union whose real life benefits outweighed the politically expedient unease with migrants. Markets, which had been aggressively pricing in staying, sharply reversed to price in the leave vote—although it is far from clear what that vote means, how it will be transacted, how long it will take, and whether or not it's the beginning of the end of the EU itself. Read more
There's a roll dam that crosses the river just above where I put my canoe in. Water flows over, creating the kind of turbulence that you'd think is smart to avoid—especially if you were in a tippy canoe. But this roll dam has a secret: All of that water flowing over the dam pulls and holds a canoe in its tumultuous embrace rather than sending it down in a river rush. June's market movements remind me of the roll dam. So much worry has been flowing over June's market that many investors may have or have been thinking about hauling out and sitting on the banks until calmer water returns. FSI's tactical trading system is designed to do just that—should conditions persist long enough to warrant such a move. But right now, FSI is holding its bow into the flow; nosing right up to the turbulent roll dam in order to fish the fomenting waters. 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||1.9%||8.8%|
|Annuity Growth & Income||-0.1%||6.0%|
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