FTEC News and Press, Fidelity MSCI Information Technology Index From 06/03/21

Since offshoring contributed to the long-term disinflationary trend, it would seem to make sense that reshoring would contribute to an inflationary trend. The "reshoring will lead to higher inflation" argument revolves around differences in labor costs, which are much higher in the US...

A market that opens big green, and then fades and closes in the red, is not really a healthy market. Let’s take a quick look at the EPS and revenue revisions for the Top 5 stocks in the S&P 500 as of 5/31/21. Only Facebook doesn’t have a PE that is lower than its...

In this post, we take a deeper dive into the gauges we monitor for the active management environment and discuss how this can play out in a well sourced, risk-managed multi-manager fund. The bottom line is we remain bullish on the opportunity set for skilled stock pickers and their ab...

Technology is still the largest weighting in the SP 500 as of this past weekend, with a 26.2% market cap. The difference between the earnings weight and market cap weight of technology is nowhere as large in May 2021 as it was in early 2000. The tech sector could tread water for 1...

Due to passive investing’s increasing popularity, opportunities outside of the major indexes should become both more prevalent and more attractive. Recently, though, traditional passive investing has become a bit less popular as many investors have eagerly embraced alternatives...

The Nasdaq Composite Index (COMP) is on pace for its worst monthly performance since September 2020. The Nasdaq finished -0.03% on the day, and for the month of May, the Nasdaq is now -5.22%. Of the thirteen trading days this month, the Nasdaq is down on eight of them.Investors...

The global pandemic accelerated already strong growth trends in consumer, corporate, and economic digitization. That being the case, investors should have exposure to high-growth companies specializing in software/technology sub-sectors like e-commerce, fintech, gaming, and work-from-...

As you are no doubt aware, the market has been rotating out of growth and technology and into "value" (energy, materials, etc.) due to rising interest rate and inflation fears. That being the case, many investors may be asking a simple question: "why on Earth would I invest in an info...

As the U.S. birth rate fell to a new low in 2020, it appears that COVID-19 and associated economic weakness/uncertainty has accelerated a preexisting trend of falling American fertility. If 2008-level fertility rates had persisted through 2020, 5.8 million more babies would have been ...

The rotation from growth to value is accelerating. The combination of higher inflation, lower US dollar, and higher yields could be lethal for momentum stocks. The Fed is way behind the curve, but we believe that Jay Powell will be forced to acknowledge reality soon. Meanwhile...