My company produces a free weekly stock market commentary that has 3 to 5 sub articles in it. I would like to produce an RSS feed that has each weeks commentary. Should I put each sub-article as it's own item (as opposed to just making each week one item.) I would like for people to see each sub article when they search the feed.
Here is an example of one weeks market commentary:
Fidelity Independent Adviser Hotline Report
Welcome to our hotline for Thursday, March 18, 2004
We made no changes to our model portfolios this week.
Visit
http://www.fidelityadviser.com for more detail on mutual fund investing.
In this Issue:
• Domestic Market Commentary
• Columbia Funds Update
• “I had $1 million in 2000 and now I have $350,000? How do I recover?”
• Fidelity Select Funds -Weekly Momentum Tracker
• Funds Spotlight – Fidelity Dividend Growth (FDGFX)
• Three Months of Money Management At No Cost, Call toll-free (877) 850-7942, extension 105
Domestic Market Commentary
The market has been experiencing uncertainty over the past few weeks. Recent concerns about terrorism, the upcoming elections, the weak dollar, and the trade and budget deficits have all contributed to the first 5% correction in the Dow in many months. Many investors are asking is the other shoe about to drop? We don’t think so.
The earnings outlook and the economy both point to continued growth and relative prosperity. The gross domestic product grew at over 6% in the final six months of 2003, and the positive momentum will carry over into the first two quarters of this year. The growth in GDP was among the strongest in the last twenty years. Earnings for the S& P 500 companies grew last quarter by a healthy 25%, while top line growth in sales grew about 12%. In fact, over the recent quarter analysts have been slowly increasing their earnings estimates. The current first quarter consensus calls for S& P 500 earnings to grow by about 14%. This is very solid growth in earnings.
The Fed met this week and we concur with their statement that “the evidence accumulated over the intermeeting period indicates that output is continuing to expand at a solid pace.” Inflation remains subdued and consumers remain very active participants in this economy.
The only thing an investor should do during a correction like this is sit tight and make sure his portfolio is positioned well for the next twelve to eighteen months. If you are unsure of what risks your portfolio faces right now, call me today at (877) 850-7942, extension 105 and we can assess your situation together. The call and the advice are both available at no cost to you as an email subscriber.
Columbia Funds Update
After careful consideration, and in light of recent allegations by the SEC, we have decided to sell all of our exposure in the Columbia family of funds, including Columbia Acorn Fund and Columbia High Yield Fund. Although our clients benefited from the 45% rise in Columbia Acorn Fund in 2003, the allegations stemming from an SEC investigation suggest that Columbia allowed certain preferred mutual fund customers to engage in short-term and excessive trading, while at the same time representing publicly that it prohibited such trading.
As we have stated in the past, we will continue to monitor the ongoing SEC investigations of mutual fund companies and make decisions related to our holdings on a case-by-case basis and after careful consideration. Specifically, should any of the mutual fund companies we invest with be found to have a systemic problem (unethical or illegal activities that have been condoned by the company or its officers), I assure you that I will take swift action, including selling all shares of that fund company.
(We continue to be concerned about these types of practices and if you own any of the Columbia funds and share our concerns, please call David Bogonovich, toll-free at (877) 850-7942, extension 105, and he will discuss the pros and cons of holding or selling these funds.
As always, you may also visit our website for additional information at
http://www.fidelityadviser.com, or send your email questions to info.RemoveThis@fidelityadviser.com
“I had $1 Million in 2000 and Now I Have $350,000? How do I recover?"
Don Dion Responds:
“I had $1 million in 2000, now I have $350,000. How do I recover?”
Unfortunately I have heard this story many times. This year in our Naples, Florida office, it seems everyone I meet with has had this similar experience—they were over-weighted in technology stocks and funds as the value of their portfolios mushroomed, then watched as their value evaporated. Now they are waiting for it to come back to its former peak.
The first question I ask is, “What was your portfolio worth before the big run-up?” “Oh, about $200,000,” they’ll say. Well then, you have done a good job. You had $200,000, now you have $350,000. You are going to be okay. What it was worth at its very peak is no longer relevant. That opportunity to sell is gone and will not return, at least not with the same stocks and mutual funds that you are holding. If your statement says $350,000, then that is what your portfolio is worth today.
Remember, $350,000 is a serious amount of money. This is money you have worked for your whole life. If you are a retired married man, you have a responsibility to your wife, who will probably outlive you. If you are a retired married woman, you may be left with a money management burden that is too much for you to handle on your own. Either way, you can begin the road to value recovery with a call to us.
I can help you position this money for the next 10 to 20 years. That is the opportunity that we have together right now — to invest in today’s quality companies through quality mutual funds and to do it prudently and conservatively.
What you don’t want to happen is to have your $350,000 portfolio be worth $250,000 by next year, and that is a real possibility.
When the market goes up and your stocks stay relatively flat, that is the telling sign. Many Internet stocks went from $10 to $100 to $2, and then in the last year they went to $6. Some of your investments in the rising market of 2003 may have experienced what is known as a “dead cat bounce.” Yes, even dead cats bounce, but not very high, and it does nothing to change their fundamental state. The next time there is a 3-month downturn, those stocks will be hit hardest. Maybe they have already been hit hard since January of this year. Investors holding them are being set up again.
Holding on to old losers will not get you back to where you want to be. It is time to move on. You have the opportunity to do it right this time.
Every week I talk to people who say, “All I have to do is buy something and it will go down.” If you have had this experience of making the same mistake over and over again, this is the time, for yourself, your family and your loved ones, to make it right.
People tell me that selling a mutual fund they have held for years evokes feelings similar to losing someone close to you. There is a great sense of loss and often a feeling of failure for not having sold earlier or for having bought the mutual fund or stock in the first place.
There is no similar concern on the investment’s part. It does not know that you own it and that you are counting on it for your retirement. This is a one-sided relationship. If the investment is not going to perform for you in the future, it is time to let it go.
With a professionally managed portfolio, and most importantly, an objectively managed portfolio, the opportunity exists to rebuild a $350,000 portfolio into $1,000,000. It will take time, and, of course, there is no assurance that this goal will be reached. But our target for our growth-oriented professional money management clients is to double their money every 5 to 7 years. A $350,000 portfolio could be back to $1,000,000 in 10 to 12 years, assuming an annual rate of return of 9% to 12%.
The United States is a great, successful nation. Our colleges and universities are producing smart technologists who are working right now to develop new biotechnologies, medicines and medical technologies. Many mutual fund managers are investing in these areas. This is where mutual fund managers are going to find the new leaders.
What we want to do is to position your portfolio, in part, with mutual funds that own companies that are growing their revenues, growing their products and services, developing drugs and medical devices, in an area with a real, true demand, for products and services that people need, not just want.
The way to get from $350,000 back to $1,000,000 is to own good funds in quality companies … period. The faster you want to come back, the more risk you need to take. If you can’t lose that money, you can’t take that risk. You have to do the right thing for your family. It’s a slower road, but that increases your chances of success.
Others ask me, “Why don’t I just follow your newsletter?”
Many of our over 40,000 Fidelity Independent Adviser subscribers enjoy managing their own portfolios and using our model portfolios and our Power Your Profits reporting on Fidelity and No Transaction Fee funds as vital guides. They have the discipline, time and knowledge to create balanced portfolios. However, we see that many of those subscribers who come to us for professional money management have filled their portfolios with “strong buys” without regard to the weighting resulting from the companies owned by these mutual funds.
Very rarely do we see a portfolio that mirrors one of the Fidelity Independent Adviser model portfolios. We see people who buy all the “strong buys” in each of our model portfolios. They are missing the discipline required for developing and maintaining a balanced portfolio. Soon they have five funds that are all small-cap growth, owning the same companies.
If you need to preserve your wealth, participate in the market with a prudent, conservative strategy and have your retirement portfolio carefully managed using an objective, disciplined method based on hard data and personal interviews with mutual fund managers, please call me directly. My toll-free number is (877) 850-7942, extension 105.
Fidelity Select Weekly Momentum Tracker - Through March 12, 2004
Fidelity has 42 sector funds. Each week we rank these funds from best to worst, 1 - 42, based on the recent momentum of their relative strength against their benchmarks, and list the top 4 (1-4) and bottom 4 (39-42) so ranked funds in our Select Weekly Momentum Tracker. (NOTE: This should not be confused with our Power Index system, in which, as you know, the higher the number the better.)
We also present, by way of comparison, the previous three weeks rankings for these same funds. This allows you to see the trend.
Because of space limitations we cannot present the weekly rankings of all the funds here, but we do calculate and retain the order, 1-42, for all funds each week and the past several weeks, enabling us to observe any trends in the performance of these funds.
Four Top Performing Sectors Weekly Momentum Ranking
Symbol Name Feb 20 Feb 27 Mar 5 Mar12
FSMEX Medical Equip 13 25 1 1st
FWRLX Wireless 2 1 4 2
FSRFX Transportation 42 41 2 3
FSUTX Utilities Grth 27 26 8 4
Four Bottom Performing Sectors Weekly Momentum Ranking
Symbol Name Feb 20 Feb 27 Mar 5 Mar 12
FBIOX Biotech 17 23 33 39
FDLSX Brokerage 6 5 35 40
FSLEX Environment 39 34 39 41
FNARX Nat Resources 18 13 42 42nd
The relative strength rank of Select Medical Equipment continues to be strong from last week. This fund has the most weight in our Fidelity Select Portfolio. If you would like to know what other funds are in this model, call me toll-free today at (877) 850-7942, ext. 105, or you can subscribe to our newsletter by visiting our website at
http://www.fidelityadviser.com.
Funds Spotlight -Fidelity Dividend Growth (FDGFX)
Fidelity Dividend Growth Fund has been a core holding of our Fidelity Growth and Fidelity Growth and Income model portfolios for some time now. It seeks capital appreciation by investing at least 80 percent in equities. The $18.17 billion fund usually invests in companies with the potential to pay dividends in the future. It invests in both domestic and foreign issues.
This large-blend fund outpaced the S&P 500 over the past three, five, and ten year periods by at least 2.5 percentage points a year and has also placed in the top 15% of its peer group category for those same time periods.. Since its inception in 1993, it has been up eight years and down only two years. Its best one-year total return was 37.53 percent in 1995. Its worst year was 2002 when it fell 20.44 percent.
The Fidelity Dividend Growth Fund is a bit more risky than other funds in the large-blend category. Over the past three years, the fund had a beta of 1.01 compared to 0.95 for the category. It had a standard deviation of 18.77 compared to 17.08 for the category. But its annual turnover was much lower at 51 percent compared to 81.42 percent for the category.
Charles Mangum has been the lead manager of the fund since 1997. Since joining Fidelity in 1990 he has served as both an analyst and a portfolio manager. Before joining Fidelity he worked as a corporate finance analyst. He graduated with a BA and BBA at Southern Methodist University in 1986, and earned his MBA from the University of Chicago in 1985.
Fidelity Dividend Growth -Portfolio Composition (as of 12/31/03)
Top 10 Holdings
Cardinal Health
American International Group
Clear Channel Communications
Johnson & Johnson
Home Depot
Citigroup
Microsoft
Fannie Mae
Merck & Co.
General Electric
44% of the portfolio
Total Holdings 120
Sector Weightings (as of 01/31/04)
Financials 24.10%
Health Care 20.30
Consumer Discretionary 12.60
Consumer Staples 9.20
Energy 6.30
Industrials 6.20
Information Tech 10.90
Telecom Services 6.10
Other 4.30
For the quarter ended December 31, 2003, its gains were fueled by stronger than expected economic and corporate earnings growth, an improving employment picture, as well as early indications of an increase in corporate capital spending. Although Fidelity Dividend Growth Fund performed strongly in absolute terms, it under-performed against both the S&P 500 and its fund category. The under-performance was due mainly to Mangum’s weight in the health sector, which under-performed the overall market last year. We believe the health sector is poised to rebound this year and is a defensive sector in uncertain times. We anticipate in 2004 that Dividend Growth will resume its record of out- pacing the S & P 500.
If you would like to know what other funds make up our model portfolios call David Bogonovich, toll-free at (877) 850-7942, ext. 105, and he will discuss the details of each portfolio with you. As always, you may also visit our website for additional information at
http://www.fidelityadviser.com, or send your email questions to info.RemoveThis@fidelityadviser.com.
Three Months of Personalized Money Management at no cost to you
If you would like to find out more about our special offer of 3 free months of professional money management, call David Bogonovich today, toll free at (877) 850-7942, extension 105, and he will discuss the advantages of our service. Or visit our website at
http://www.dionmm.com.
Thank you and have a great week!
Fidelity Independent Adviser and all the Fidelity-Specific Portfolios mentioned above are completely independent of, and not affiliated with, Fidelity Investments or any of the Fidelity mutual funds discussed or listed above.
As always, you may also visit our website for additional information at
http://www.fidelityadviser.com, or send your email questions to info.RemoveThis@fidelityadviser.com
This material has been prepared solely for informational purposes. As with all historical data, past performance is not an assurance of future results. All investments involve risk including loss of principal.
General