The market winds blew hard in October. Volatility, the market equivalent to stormy seas, created waves of selling on fear and assumptions which, thanks to solid earnings and economic fundamentals, became waves of buying by month’s end. While this volatility is hardly welcoming news, it is nonetheless a trend toward a more normal marketplace where things don’t always just rise. Read more
Yesterday's Fed minutes and housing starts didn’t rock the boat. In the nanosecond pre-open and afternoon trade-related actions there was little evidence of lasting charm or harm. It was hard to see how anything in either report would be earth-shattering or even groundbreaking, but it shouldn’t go without saying that our economy remains on solid footing. Read more
The world remains about as unsettled as we left it last week, with no real advances (unless you count the advance of Russian troops and the now porous border of Ukraine). Eurozone growth remains a shadow of its former self and potential for renewed growth. China’s slowing still looks like China’s doing. On that table, the markets have been ping-ponging their way to record or recent highs. Despite the fact that Japan’s Nikkei 225 is at a 7-year high, the S&P 500 continues to look like the best (if not the only) game in town. 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.