Throughout February, Europe remained in the spotlight from both an investment and geopolitical viewpoint. In terms of geopolitics, another embarrassing diplomatic failure to strike a lasting ceasefire between Russia and Ukraine didn’t so much rekindle Cold War or invasion fears as underscore the nature of the conflict: It’s a Putin putsch. Meantime, in a sunnier clime, Greece punted a four-month bailout reprieve as that solution was dissolving faster than the ink on the extension could dry. With international markets on every investor's mind, I sat down with Jed Weiss, manager of Fidelity International Growth, to talk about how he constructs his portfolio to manage the many risks that come with international investing. Also in the issue, with oil prices seemingly unable to find a bottom, I present a spotlight on the energy sector, reviewing Fidelity's energy funds and ETFs, including my ratings on each. And, of course, I also have my interview with John Dowd, manager of Fidelity Select Energy and Fidelity Select Natural Resources. Read more
This week, due to a lighter slate of key reports, the door was still open for event-driven news and their attendant assumptions—nothing to reflect or establish a trend, except the trend of headlines being a poor guide for long-term investors. Read more
This week, we saw a surprise uptick in new home sales. Despite the horrible weather and the high prices born of low inventory, new homes sales were robust, up nearly 8% last month to their highest level in seven years. And in Markit’s purchasing manager index (a gauge of businesses’ view of business activity in the months ahead), we saw a surprise uptick from 55.1 to 55.3—not a big leap, but consensus had forecast a small decrease. 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.