CNBC - August 15, 2017

Challenging Times No Match for The Markets

August 2017

Despite incendiary political and geopolitical firestorms, and thanks to ongoing strong earnings and economic fundamentals, fear’s hotspots have been smothered by market gains … but not extinguished. Forecasting, I continue to expect a pullback that could try investor nerves more than burn our model portfolios. I remain confident in our model portfolios’ ability to manage potentially stormier market seas and in the experienced ability of the Fidelity managers we invest in to adjust course if conditions change for the worse.... Read more

Carrying On

August 17, 2017

There is a Jewish proverb that says, “Ask not for a lighter burden, but for broader shoulders.” My approach to managing the markets’ good and bad times is based on one of my core investment principles: Diversification—not owning only one thing, and not owning several things that merely behave alike—is one way to address the fact that the market is constantly burdened by concerns. My model portfolios are designed to shoulder such burdens and have a demonstrated track record of doing just that.... Read more

Stay Calm and Carry On

Thankfully, domestic and global markets continue to gain more ground despite the fact that many aspects of the global and domestic dialogue are composed of hateful speech and self-interested rhetoric. My approach to managing the markets' good and bad times is based on one of my core investment principles: Diversification. Not owning only one thing, and not owning several things that merely behave alike, is one way to address the fact that although the markets are constantly burdened by concerns, FSI's model portfolios are designed to shoulder such burdens and have a demonstrated track record of doing so—and well.... Read more

Fidelity Investor’s models have 7/31/17 year-to-date returns of between 4.7% and 14.7%. The average Fidelity investor’s portfolio gained 1.6% in July.
ModelYTD5-Year
(Annualized)
Global Quant14.7%14.6%
Aggressive Growth13.4%12.7%
Growth12.3%12.4%
Growth & Income10.2%11.4%
Income4.7%8.4%
Annuity Growth14.1%10.0%
Annuity Growth & Income12.2%9.4%

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.

Awarded ‘2016 Newsletter Honor Roll’ by the independent Hulbert Financial Digest

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

Say goodbye to Index funds and Hello to Actively Managed funds

Jim Lowell adheres to the Cardinal Rule of Mutual Fund Investing: Buy the manager! He makes sure his subscribers, also known as “Fidelity’s Fortunate Few,” are protected and invested in Fidelity’s best funds.

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Tap into the Wealth-Building Power of Sector Trading

These long-term sector investments are selected based on Jim’s proprietary Fidelity Sector Investor fund-scoring system and set to deliver big profits.

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