While headlines are often misleading and increasingly agenda-driven, the markets have yet to accept a less-than-optimistic view. For good reason. The fundamentals simply don’t provide enough evidence for worsening times and, in fact, point to a greater probability of better times, domestically and globally. Last month, we learned that our Fed deems economic growth strong enough to have warranted another rate hike then and to have proposed the likelihood of two additional hikes later this year. As we head into April, I agree with our Fed; despite plenty of clouds on the horizon, I’m seeing the probability for more green shoots in 2017’s garden. Read more
Overall, earnings and economic fundamentals continue to grid gains. But momentum—which is positive based on assumptions that the May 7 French election will preserve the European Union, that North Korea won’t go nuclear, that some of Trump’s pro-business reforms will see the light of day, that consumers will remain gainfully employed, and that our Fed won’t have to suddenly switch from inflation watching to deflation fighting—also has a hand in how the markets have been behaving, and will behave. Read more
April hasn’t been the cruelest month, but it has been a month where an increase in market volatility has occurred right alongside a decrease in the post-election priced-in optimism. That’s the reality check that I’ve been noting for a few months: The markets’ post-election euphoria had to come down to earth and get more grounded in policy action than in campaign rhetoric, and it has begun to do so. 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||5.0%||9.9%|
|Annuity Growth & Income||6.0%||7.7%|
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