Video highlights: Latest investing ideas
What’s next for stocks, trends to watch, and how the Fed is impacting markets. Watch the videos.
Five years ago, the financial crisis threw the investment markets into turmoil. Credit markets were virtually frozen, stock prices dove, and some people questioned the sustainability of the financial system. Today, the economy is still sluggish, but many of the macro-level risks seem to have subsided. U.S. companies are less leveraged, the housing market is recovering, and stocks have hit new all-time highs.
Although investors may not be worrying about the future of the American financial system, new questions have arisen. Low rates have income-oriented investors wondering where to find yield, the unprecedented role of central banks has some people concerned about the sustainability of today’s rally, and higher stock prices have investors questioning what to buy.
Viewpoints gathered together five Fidelity portfolio managers for a discussion of these questions. They offered their thoughts on why interest rates may stay low for long, reasons to consider yield from global dividend-paying stocks, high-yield and corporate bonds, and the case for consumer stocks, housing, and tech names.
Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
The views and opinions expressed by the Fidelity speakers are their own and do not necessarily represent the views of Fidelity Investments or its affiliates. Any such views are subject to change at any time based on market or other conditions, and Fidelity disclaims any responsibility to update such views. These views should not be relied on as investment advice, and, because investment decisions are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity product. Neither Fidelity nor the speakers can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Please consult your tax or financial adviser for additional information concerning your specific situation.
As with all your investments through Fidelity, you must make your own determination as to whether an investment in any particular security or securities is consistent with your investment objectives, risk tolerance, financial situation, and evaluation of the security.
The stocks mentioned are not necessarily holdings invested in by FMR LLC. References to specific company stocks should not be construed as recommendations or investment advice.
As of April 30, 2013, Fidelity Blue Chip Growth Fund held Home Depot Inc. 1.9%, Lowe’s 0.749%, Ford 0.186%, Whirlpool 0.619%, Starbucks 1.255%, Amazon 1.664%, Netflix, Inc. 0.377%, and Google 5.42%.
The top ten holdings of Fidelity Blue Chip Growth Fund as of March 31, 2013 were Google Inc. A, Apple Inc., Gilead Sciences Inc., QUALCOMM Inc., Amazon.com Inc., Procter & Gamble Co., Home Depot Inc., Coca-Cola Company, Green Mountain Coffee Roasters, Inc., and Philip Morris International Inc. Top ten represent 24.26% of the fund.
As of January 31, 2013, Fidelity Leveraged Company Stock Fund held Comcast Corp. Class A 2.720%, Cinemark Holdings, Inc. 1.6%, Lyondell 8.4%, General Motors 2.8%, Ford 1.9%, General Electric 0.532%, The Dow Chemical Company 0.58%, and Tenet Healthcare 2.2%.
The top ten holdings of Fidelity Leveraged Company Stock Fund as of March 31, 2013 were Lyondell, Basell Inds Class A, Service Corp International Inc., AES Corp., Tenet Healthcare Corp., General Motors Co., Ford Motor Co., HollyFrontier Corp., Gamestop Corp. Class A, and Rock-Tenn Company Class A. Top ten holdings represent 31.37% of the fund.
As of April 30, 2013, Fidelity Global Equity Income Fund held 1.421% of assets in Copa Holdings SA Class A, Svenska Handelsbanken AB 1.486%, and Daito Trust Construction Co. 0.634%. None were top 10 fund holdings.
Fidelity is not recommending or endorsing any investment by making it available to its customers.
Past performance is no guarantee of future results.
Diversification and asset allocation do not ensure a profit or guarantee against a loss.
In general, the bond market is volatile, and fixed income securities carry interest rate risk, 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 holding them until maturity to avoid losses caused by price volatility is not possible. While it may seem appealing to look at bonds that offer higher yields, investors should consider those higher yields to be a sign of potentially greater default, and credit and call risk.
Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risk, including the possible loss of principal.
Foreign markets can be more volatile than U.S. markets because of increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets. These risks are particularly significant for funds that focus on a single country or region.
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