Diversification and asset allocation do not ensure a profit or guarantee against loss.
Past performance is no guarantee of future results. Actual results will vary.
The views expressed in the foregoing commentary were prepared by Strategic Advisers LLC based on information obtained from sources believed to be reliable but not guaranteed. This commentary is for informational purposes only and is not intended to constitute a current or past recommendation, investment advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. The information and opinions presented are current only as of the date of writing, without regard to the date on which you may access this information. All opinions and estimates are subject to change at any time without notice.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. This material is provided for informational purposes only and should not be used or construed as a recommendation for any security.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Tax-sensitive investment management techniques (including tax-loss harvesting) are applied on a limited basis, at the discretion of the portfolio manager, primarily with respect to determining when assets in a client’s account should be bought or sold. With this discretionary investment management service, any assets contributed to an investor’s account that the portfolio manager does not elect to retain may be sold at any time after contribution. An investor may have a gain or loss when assets are sold.
1. You cannot invest directly in an index. Past performance is no guarantee of future results. For illustrative purposes only. While these trades may appear at the model level, they may or may not have occurred in individual client accounts. Model portfolio activity shown represents rebalancing of 0.50% or greater in aggregate U.S. stock and/or bond fund exposure. Source: Fidelity Investments. Data as of 6/30/19. *Represents trading activity for Portfolio Advisory Service retirement accounts with a Total Return strategy only.
Bond performance—Bloomberg Barclays U.S. Aggregate Bond Index, Stock performance—Dow Jones U.S. Total Stock Market Index. Fidelity® Wealth Services Model Trading Activity represented by the Fidelity® Wealth Services model portfolio for accounts managed with a Growth with Income strategy and the Blended preference
2. Bond performance—Bloomberg Barclays U.S. Aggregate Bond Index, Stock performance—Dow Jones U.S. Total Stock Market Index. Fidelity® Wealth Services Model Trading Activity represented by the Fidelity® Wealth Services model portfolio for accounts managed with a Growth with Income strategy and the Blended preference
Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based, market-value-weighted benchmark that measures the performance of the investment grade, U.S. dollar-denominated, fixed rate taxable bond market. Sectors in the index include Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS, and CMBS.
The MSCI ACWI (Net MA) is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The index is comprised of stocks from 23 developed countries and 24 emerging markets.
Hypothetical example comparing an investor who left the market for a year after a down year and then returned, versus an investor who stayed consistently invested from January 1, 1987, to December 31, 2018.
Hypothetical comparison of staying in market versus going in and out of market over 30 years. Statement is for illustrative purposes only to demonstrate the potential effect of abandoning an investment strategy in response to periods of negative market returns. Hypothetical period begins on 1/1/1987 with a Balanced Asset Allocation portfolio of $250,000 that remains invested in the Balanced Asset Allocation through 12/31/2018. Those returns are compared with a $250,000 portfolio that enters the market on 1/1/1987 with a Balanced Asset Allocation and exits the market at the end of each down year (as defined below) and then reenters the market one year later. A “down year” is defined as any rolling 12-month period in which the cumulative portfolio returns for that period were negative. “Exiting the market” is defined as shifting the portfolio to entirely short-term investments on the first trading day of the calendar month after a down year. “Entering the market” is defined as investing the entire value of the portfolio in the Balanced Asset Allocation prior to market open on the first trading day of the calendar month exactly 12 months after the portfolio exited the market.
Portfolio Advisory Services accounts are discretionary investment management accounts offered through Fidelity® Wealth Services for a fee.
Optional investment management services provided for a fee through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser and a Fidelity Investments company. Discretionary portfolio management provided by Strategic Advisers LLC, a registered investment adviser. These services are provided for a fee.
Fidelity managed accounts refer to the discretionary investment management services provided through FPWA, a registered investment adviser. These services are provided for a fee.
Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FPTC, FBS, and NFS are Fidelity Investments companies.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
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