| Happy 2021—That's a Command not a Suggestion!
This is Jim Lowell, Editor-in-Chief of the Fidelity Investor, with your regularly scheduled Hotline, Thursday, December 31, 2020. Fidelity Investor subscribers: Please note that our offices, including customer service, are closed Friday, January 1. Based on my year-end Manager Rankings, the following trades are recommended in my Global Quant Growth and Global Quant Income model portfolios, effective today, December 31: Global Quant Growth - In the Domestic holdings, we are selling Small Cap Growth (FCPGX) and buying Founders (FIFNX).
- In the International holdings, we are selling Global Commodity Stock (FFGCX) and buying Emerging Asia (FSEAX). We are also selling Emerging Markets (FEMKX) and buying Pacific Basin (FPBFX).
- Lastly, for the Sector holding, we are selling Select Pharmaceuticals (FPHAX) and buying Infrastructure (FNSTX).
Additionally, we’ll rebalance each holding to equal 10% stakes. Global Quant Income - We are selling Focused High Income (FHIFX) and buying Capital & Income (FAGIX).
- We are selling High Income (SPHIX) and buying Mortgage Securities (FMSFX).
We’ll rebalance each holding to equal 12.5% stakes. The Markets For the year through December 30, the S&P 500 is up 17.7%; the Wilshire 5000—the broadest measure of our domestic market, is up 21.6%; the EAFE index—my preferred broad measure of international markets, is up 8.7%; and the Bloomberg Barclays U.S. Aggregate Bond Index—my go-to broad measure of U.S. investment-grade bonds, is up 7.7%. Our Portfolios Over the same time period, my rankings-based, quantitative Global Quant Growth portfolio is up 17.0%, and my Global Quant Income portfolio is up 7.3%. My Growth portfolio is up 18.3%, my Growth & Income portfolio is up 6.9% and my Income portfolio is up 1.4%. Annuity Growth is up 15.2%, and Annuity Growth & Income is up 10.5%. Since its March 31 inception, my new Factor+ portfolio is up 30.3%. Market Watch As one of the more the challenging years (whose challenges remain) slips into the rearview mirror, I can see that we managed to successfully safeguard income assets for those members for whom a return of assets was paramount to a return on assets (with more than double the yield on the 10-year Treasury). And on both an absolute and risk-adjusted basis, we were able to deliver reasonable total returns along the more growth-oriented model portfolio spectrum. Speaking of spectrums, we start 2021 with a slate of meaningful economic reports: Manufacturing and service sector reads, construction spending and car sales, factory orders and FOMC minutes from their end-of-December confab, private sector jobs data from ADP and the government’s nonfarm payrolls. Before we get there, I can close out the year by saying there was little year-end market fanfare; the final week of 2020 offered nothing in terms of reports, market activity and investor behavior that swayed the markets hither or thither. It was a welcome, boring end to 2020. I’ll welcome a boring 2021, but as always, I’ll be prepared to change course based on the facts I know rather than the fears others suggest we should follow. And so, with your January 2021 FI Issue coming into view, I’ll take this moment to bid 2020 adieu and to wish you and yours a happy, safe and healthy new year. No matter how trying or terrifying 2021 market moments may appear, as we have been doing for decades at Fidelity Investor, we’ll do everything in our power to make investing in 2021 another prosperous year! Until next Thursday, or if the Dow moves 10% in either direction, this is Jim Lowell thanking you for your membership and helping you secure your financial future. Sincerely, 
Jim Lowell  Like Jim on Facebook
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