Are We in a Market Bubble?

September 2020

In this month's issue, one of the many topics I discuss are the recent headlines that are caterwauling about being in a market bubble that is about to burst. Are they right or wrong?... Read more

COVID-19’s Investible Trends

September 17, 2020

Markets continue to rally on two COVID-19 trend rails: Vaccine hopes and COVID-related consumer purchasing behavior and use demands. Those trends are likely to remain investor friends. But the cause of these trends remains problematic and renders gains prone to a setback.... Read more

Are We in a Market Bubble?

If you haven't noticed, recent headlines are caterwauling about being in a market bubble that is about to burst. Are we really in a market bubble? In the meantime, I do think that a handful of stocks are bubbling and could lead to the perception that as they go, so the market should go—a potentially self-fulfilling prophecy that, while painful in the short run, would create discounted prices in growth and value stocks alike.... Read more

Fidelity Investor’s Model Portfolios have year-to-date returns through 8/31/20 of between -0.9% and 11.0%. The average investor at Fidelity gained 4.1% in August.
ModelYTD5-Year
(Annualized)
Global Quant Growth5.8%12.1%
Global Quant Income4.7%N/A
Growth11.0%10.3%
Factor+N/AN/A
Growth & Income2.1%7.4%
Income-0.9%4.2%
Annuity Growth8.4%9.6%
Annuity Growth & Income5.3%8.1%
S&P 500 9.7%14.5%
Fidelity Investor Index 7.3%8.1%

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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