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IN THIS ISSUE: IPOs, ETFs, and saving more for retirement |
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THE HEADLINES
Public IWhat’s happening: It could be a record-setting year for initial public offerings (IPOs). That’s when a private company “goes public” and starts selling shares to investors in a public market for the first time.
Here’s why: More companies may be looking to go public amid rising stock prices and potentially more favorable financial conditions. Artificial intelligence, software, and health care firms might see the most IPO activity.
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| What it means:
IPOs can generate buzz among investors, particularly for so-called “hot issues” that garner a lot of interest. But beware of getting caught up in the hype: There are unique considerations to keep in mind. For example, an IPO’s stock can be particularly unpredictable on its first day through the first few months of trading. Who might consider investing in IPOs?
Get more info, including how to participate. |
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(Ex)change upWhat happened: US exchange-traded fund (ETF) assets have already reached a record $14 trillion in 2026.1
Here’s why: It could be because ETFs have
several advantages for investors.
Fees for ETFs are often quite low compared to other investment alternatives. ETFs also tend to be more tax-efficient than most actively managed mutual funds. When a mutual fund manager sells assets for a profit, those gains are considered distributions to shareholders. Those shareholders must pay taxes on those gains—even if they reinvest that money or don’t sell any shares themselves. This isn’t the case with ETFs.
What it means: Here are
7 things to consider to pick the right ETFs for you.
Fidelity offers 77 ETFs and exchange-traded products (ETPs), including
a new class of ETFs that can help you seek extra yield.2 |
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Separate waysWhat’s happening: Typically, the stock market and consumer sentiment move up and down together in reaction to the economy, but lately there’s been a disconnect.
Here’s why: The stock market has soared thanks to AI growth and Magnificent 7 success in the past year. Many of these companies make their money predominantly from other businesses, so they’re not as dependent on consumer spending. In other words, their stock prices aren’t as tied to consumer sentiment.
On the flipside, consumer vibes are on the downswing, likely due to affordability. Since 2019, consumer prices are up about 26%,3 and home prices have surged in some areas by as much as 79%.4 Meanwhile, wages haven’t kept up, rising only by 8% to 36%.5
What it means for you: While your portfolio could be happy, you might feel the squeeze with some regular expenses. Some good news: The USDA says grocery prices might not rise as much in 2026 as last year, and January’s Consumer Price Index, which tracks the price of goods and services, also showed inflation is cooling. Still, prices are nowhere near pre-pandemic levels. Help
protect your money from inflation in these 6 ways. |
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EXPLAINED
The Supreme Court’s decision on tariffsThe highest court in the land has weighed in on the legality of the sweeping tariffs imposed on trade partners abroad.
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IN RESPONSE...In a recent poll, you told us living expenses and debt are making it tougher to save for retirement. These 4 tips could help you put away more money.
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Start with
creating a financial plan.
A strong plan accounts for money coming in and going out, minimizing taxes, having enough insurance, and more. If you don’t want to go it alone, a financial pro can help you make a plan. Here’s
what Fidelity offers.
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Choose a debt repayment strategy. If you have multiple loans and credit card balances, you might want to focus on nixing one debt at a time, while continuing to make all other minimum payments. There are
2 strategies
that could help accelerate repayment.
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Consider automated investing. Setting up auto-drafts—even just $50 a month—from your bank account to your retirement account could help you save more and build momentum. Here’s
how to set up recurring investments at Fidelity.
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Don’t leave money on the table. Many employers offer a match on employee contributions to a workplace retirement plan such as a 401(k). If you don’t contribute enough to get that full match, it’s like turning down free money. Need help trimming expenses so you can contribute more? These
10 ideas could shave off 10%.
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