June 16, 2026

IN THIS ISSUE: Inflation trends, record stock holdings, and a credit card trick

GOOD START

Investors who do these 6 things could help increase their success in every type of market.

THE HEADLINES

Price to pay

What’s happening: Inflation ticked up to 4.2% last month—the highest reading in 3 years.¹ Fidelity pros think inflation may remain elevated, though a deal with Iran could help slow the acceleration of price increases.

Here’s why: Pricier oil had made shipping, plastics, and fertilizers, among many other items, cost more too. That trickled down to food prices, says Jake Weinstein of Fidelity’s Asset Allocation Research Team. In fact, fresh vegetables, beef, and coffee had all risen by double digits in the last year. The recent uptick in job growth is also part of the equation. When consumers have more purchasing power, their demand for goods and services rises, which can drive up prices for goods and services.

What it means: Higher inflation had been prompting investors to increase their bets that the Fed may hike rates this year. It’s still TBD if a deal with Iran slows inflationary pressures enough to take rate hikes off the table. The Fed is largely expected to hold rates steady when they meet this week.

Some good news: Over the long term, stocks have generally outpaced inflation.

Besides stocks, there are investments that could help inflation-proof your portfolio, say Fidelity pros, such as Treasury Inflation-Protected Securities, real estate investment trusts, and commodities. Get 6 other ways to help protect your portfolio from inflation.

• • •

In stock

What’s happening: Stocks make up a record share of Americans’ assets. About a third of total US household wealth was in equities at the end of 2025, according to Federal Reserve data.² That’s more than 2021’s meme stock era and 2000’s dotcom boom. The percentage is likely even higher now, given the records major indexes, like the S&P 500^®3, have been hitting.

Here’s why: Stock prices have generally tracked corporate profits, as they usually do. Those profits have been rising, so stocks have risen in turn. In addition to people’s investments becoming more valuable, the still-running bull market could be encouraging people to invest even more in stocks.

What it means for you: Investors who stay invested through the day-to-day noise generally fare better than those who take money out of the market. That’s a good lesson to bear in mind now: Despite potential bouts of volatility, Fidelity pros say continued market strength in the second half of the year remains a real possibility.

Just remember that holding a high percentage of your portfolio in one type of investment could leave you overexposed to risk if the markets shift. Not sure you have the right mix? Answer these 3 questions to help strengthen your portfolio.

• • •

Cruel summer

What’s happening: It could cost $778 on average to cool a home from June to September—nearly a 9% increase over last summer and an almost 40% spike from 2020, according to the National Energy Assistance Directors Association and Center for Energy Poverty and Climate.⁴

Here’s why: Above-average temperatures and heat waves have been forecasted by the National Oceanic and Atmospheric Administration.⁵ Plus, utility companies are funding grid updates to accommodate power-guzzling data centers that support AI—then passing those costs on to customers. That’s partly why electricity costs are rising faster than average inflation. All that could spell hot bills.

What it means for you: To cool your bills, target your air conditioner: Each degree above 75°F that you set your thermostat saves you 3% of energy used.⁶ Another cost-cutter: Dialing up the thermostat by 7–10 degrees for 8 hours a day when you’re out can save up to 10% a year.⁷ Also: Ceiling fans that rotate counterclockwise push colder air down and can make you feel 4 degrees cooler and reduce energy bills up to 30%.⁸ Consider these 7 easy tips to cut utility bills too.

On the investing front, the utilities sector has emerged as an area of opportunity because of the need to power all those new data centers. Here’s what to know before investing in utilities.

BEST OF ROTH WORLDS

HOW TO

Get ahead of the curve with your investments

You could position yourself for growth potential with these research-backed tips from Fidelity pros.

Check the midyear outlook

WORTH A TRY?

Put rewards to work

Some credit card companies might offer the ability to convert your rewards points to cash and then transfer the money into a retirement account, health savings account, or 529 college savings plan. (Psst … the Fidelity^® Rewards Visa Signature^® Credit Card offers 2% cash back⁹ if you deposit your rewards into an eligible Fidelity account.¹⁰) Check your credit card program reward rules to be sure you’re getting the most value. Learn 8 more ways to help snowball your investments.

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1. Jeff Cox, “Consumer prices rose 4.2% annually in May, highest in three years,” CNBC, June 10, 2026.

2. “Households and Nonprofit Organizations; Directly and Indirectly Held Corporate Equities as a Percentage of Total Assets, Level,” Federal Reserve Bank of St. Louis, March 19, 2026.

3. The S&P 500^® Index is a market capitalization–weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent US equity performance.

4. “Summer Residential Cooling Outlook: Residential Electric Utility Expenditures Projected to Increase by 8.5% this Summer,” National Energy Assistance Directors Association (NEADA) and Center for Energy Poverty and Climate (CEPC), April 27, 2026.

5. “Prognostic Discussion for Long-Lead Seasonal Outlooks,” NOAA/National Weather Service Climate Prediction Center, May 21, 2026.

6. “Energy-Saving Tips,” New York State, accessed June 10, 2026.

7. “Programmable Thermostats,” US Department of Energy, June 10, 2026.

8. “Ceiling Fan Direction in Summer and Winter,” The Home Depot, April 30, 2025.

9. You will earn 2 Points per dollar in eligible net purchases (net purchases are purchases minus credits and returns) that you charge. Accounts must be open and in good standing (not past due or over limit) on the closing date of the billing cycle to earn and redeem rewards and benefits. Upon approval, refer to your Program Rules for additional information. Reward Points will not expire as long as your Account remains open. Certain transactions are not eligible for Reward Points, including Advances (as defined in the Agreement, including wire transfers, travelers checks, money orders, foreign cash transactions, betting transactions, lottery tickets and ATM disbursements), convenience checks, balance transfers, unauthorized or fraudulent charges, overdraft advances, interest charges, fees, credit insurance charges, transactions to fund certain prepaid card products, U.S. Mint purchases, or transactions to purchase cash convertible items. The 2% cash back rewards value applies only to Points redeemed for a deposit into an eligible Fidelity account. The redemption value is different if you choose to redeem your Points for other rewards such as travel options, merchandise, gift cards, and/or statement credit. Other restrictions apply. Full details appear in the Program Rules new card customers receive with their card. Establishment or ownership of a Fidelity account or other relationship with Fidelity Investments is not required to obtain a card or to be eligible to use Points to obtain any rewards offered under the program other than Fidelity Rewards.

10. Eligible accounts include most nonretirement registrations as well as Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, Fidelity Charitable^® Giving Account^®, Fidelity HSA^®, and Fidelity^®-managed 529 College Savings Plan accounts. The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits. Full details appear in the Program Guidelines new card customers receive with their card. Contributions to Fidelity Charitable^® are generally eligible for a federal income tax charitable deduction. Please consult with your tax advisor. The list of eligible registration types may change without notice at Fidelity’s sole discretion. For more information about whether a particular registration is eligible, please call 1-800-FIDELITY (800-343-3548).
Investing involves risk, including risk of loss.

Past performance is no guarantee of future results.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic development.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.

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