Generally, among asset classes, stocks are more volatile than bonds or short-term instruments and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Although the bond market is also volatile, lower-quality debt securities including leveraged loans, generally offer higher yields compared to investment-grade securities, but also involve greater risk of default or price changes. The securities of smaller, less well-known companies can be more volatile than those of larger companies. Foreign markets can be more volatile than U.S. markets due to increased risks of adverse issuer, political, market, or economic developments, all of which are magnified in emerging markets. Sector investments can be more volatile because of their narrow concentration in a specific industry.
Views expressed are based on the information available as of Mar. 21, 2014, and may change based on market and other conditions.
There is no guarantee the trends discussed will continue.
Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk.
Past performance is no guarantee of future results.
Investing involves risk, including risk of loss.
Diversification does not ensure a profit or guarantee against loss.
It is not possible to invest directly in an index. All indices are unmanaged.
Information presented is for informational purposes only and is not intended as investment advice or an offer of any particular security. This information must not be relied upon in making any investment decision. Fidelity cannot be held responsible for any type of loss incurred by applying any of the information presented. Content has been provided for informational purposes only and should not be considered investment advice or an offer for a particular security or securities. These views should not be relied on as investment advice, and because Fidelity’s investment decisions are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity product or service. Fidelity does not assume any duty to update any of the information. Fidelity cannot be held responsible for any direct or incidental loss incurred by applying any of the information offered. An individual’s investment decisions should take into account the unique circumstances of the individual investor. Please consult your tax or financial advisor for additional information concerning your specific situation.
All indices are unmanaged, and performance of the indices includes reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any particular investment, and an investment cannot be made in any index.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed-income security sold or redeemed prior to maturity may be subject to loss. Duration is a measure of a security’s price sensitivity to changes in interest rates. Duration differs from maturity in that it considers a security’s interest payments in addition to the amount of time until the security reaches maturity, and also takes into account certain maturity shortening features (e.g., demand features, interest-rate resets, and call options), when applicable. Securities with longer durations generally tend to be more sensitive to interest-rate changes than securities with shorter durations.
The commodities industry can be significantly affected by commodity prices, world events, import controls, worldwide competition, government regulations, and economic conditions. Neither diversification nor asset allocation ensures a profit or guarantees against a loss.
Standard deviation: a mathematical formula for the average distance from the average; how much variation there is from an average or norm.
1. Source: Fidelity Investments, as of Feb. 28, 2014.
2. Source: Haver Analytics, Fidelity Investments, as of Jan. 31, 2014.
3. Source: Bloomberg, Credit Suisse, as of Feb. 2014.
4. Source: “China’s forex reserves reach $3.4tn,” www.ft.com, Apr. 11, 2013.
5. Source: “Russia Surprises With Rate Hike as Ruble Plunges,” www.foxbusiness.com, Mar. 3, 2014.
6. Fidelity Investments, as of Mar. 31, 2014.
7. The European Commission, Countries and Regions: Russia, Nov. 19, 2013.
8. Bloomberg, Fidelity Investments, as of Mar. 21, 2014.
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