"We own a healthy dose of Fidelity Select Healthcare (FSPHX) in each of our model portfolios," says fund expert Jim Lowell.

The editor of Fidelity Investor explains, "Manager Eddie Yoon and I caught up this month. His command of the sector and his growth-oriented discipline continue to serve us well on both our risk-adjusted and real return fronts/

"Of course, healthcare (representing nearly 16% of our total GDP) is unlike any other sector in the S&P. It is so diversified and global, so interrelated to technology, manufacturing, and R&D, so dependent upon delivering real goods and services for consumer consumption, that it is almost an economy unto itself.

Continue reading Fidelity Select Healthcare (FSPHX): The Right Prescription

Fidelity Select Healthcare (FSPHX): The Right Prescription originally appeared on BloggingStocks on Thu, 17 Feb 2011 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Fidelity Expert Picks 'Manager of the Year and the Decade'

Fidelity Expert Picks 'Manager of the Year and the Decade' originally appeared on BloggingStocks on Fri, 04 Feb 2011 16:40:00 EST. Please see our terms for use of feeds.

"Our annual 'Hot Hands' feature is a simple strategy: buy whichever fund has performed best in the previous year and hold onto it throughout the upcoming one," says fund expert Jim Lowell.

The editor of Fidelity Investor explains, "Over the long haul this strategy has delivered hedge fund-like gains without any of the hedge fund snafus.

"Buying the Hot Hands fund doesn't guarantee you are going to beat the index every year. That's worth repeating; this strategy has not beaten the market every year.

Continue reading Hot Hands: A One-Fund Strategy for 2011

Hot Hands: A One-Fund Strategy for 2011 originally appeared on BloggingStocks on Mon, 24 Jan 2011 13:00:00 EST. Please see our terms for use of feeds.

This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011. This special report is courtesy of TheStockAdvisors.com.

"My 2011 stock market 'top pick' would be a 4-fund growth portfolio," suggests Jim Lowell.

The editor of Fidelity Investor explains, "This would include a 30% position in Fidelity Focused Stock (FTQGX) and 30% in the iShares Dow Jones US Index (IYY), coupled with 10% in ProShares UltraShort 20+ Year Treasury (TBT) and 10% in Fidelity Floating Rate High Income (FFRHX).

Continue reading Top Picks 2011: A Four-Fund Growth Portfolio

Top Picks 2011: A Four-Fund Growth Portfolio originally appeared on BloggingStocks on Sat, 01 Jan 2011 15:00:00 EST. Please see our terms for use of feeds.

Fund guru Jim Lowell has chosen Fidelity Select Health Care (FSPHX) as his latest spotlight fund of the month; the editor of The Fidelity Investor explains, "The fund continues to be a clear market overweight position for our fundamentally-driven portfolios.

"So far this year, manager Eddie Yoon is returning a shade less than that of the S&P 500; but I don't double him or my premise for holding his fund.

Continue reading Fidelity Health Care (FSPHX): 'Global Growth Story'

Fidelity Health Care (FSPHX): 'Global Growth Story' originally appeared on BloggingStocks on Wed, 01 Sep 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Quant Focuses on Fidelity's Best Fund Managers

Quant Focuses on Fidelity's Best Fund Managers originally appeared on BloggingStocks on Thu, 15 Jul 2010 13:10:00 EST. Please see our terms for use of feeds.

"Not often discussed, all bonds have at least some interest-rate risk. And by and large, a bond or bond fund's risk is adequately measured by its stated 'duration'," says fund specialist Jim Lowell.

The editor of Fidelity Investor explains, "Even risk-free Treasury bonds do have market risk: they may not have any risk of default, but their prices are bid lower whenever interest rates are rising. In fact, the biggest risk to most types of bonds comes from higher interest rates.

"Interest rate risk hasn't been much of a concern since the end of the last rate hike binge back in 2006. However, it's the things we've forgotten to be concerned about which can bring the greatest downside surprises. There is now certainly a lot more room for rates to go up than for rates to go down.

Continue reading Jim Lowell: Market Hedges from Fidelity

Jim Lowell: Market Hedges from Fidelity originally appeared on BloggingStocks on Fri, 21 May 2010 14:00:00 EST. Please see our terms for use of feeds.

In his The Fidelity Investor, the advisor looks to his latest our Spotlight Fund -- Fidelity Health Care (FSPHX), which he believes is well positioned for both its offensive and defensive qualities

Continue reading Fidelity Heath Care (FSPHX): Pure Play in Health Care

Fidelity Heath Care (FSPHX): Pure Play in Health Care originally appeared on BloggingStocks on Wed, 17 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

Jim Lowell is a long-standing expert on mutual funds, which a noted specialty regarding the Fidelity family of funds.

In his The Fidelity Investor, he looks to Fidelity Select Health Care (FSPHX) as his top investment idea for 2010. He suggests, "Investors looking for a one-stop health care shop should pick this option."

Continue reading Top Picks for 2010: Fidelity Select Health Care (FSPHX)

Top Picks for 2010: Fidelity Select Health Care (FSPHX) originally appeared on BloggingStocks on Sat, 02 Jan 2010 15:00:00 EST. Please see our terms for use of feeds.

"Inflation protected bonds hold an interesting hybridized place among Fidelity's bond fund lineup," says Jim Lowell in his Fidelity Investor. Here's the fund advisor's look at Fidelity Inflation-Protected Bond Fund (FINPX).

"When fear of recession (and fear while in recession) hold the upper hand, they behave more like longer-term Treasuries.

"When fear of inflation rises, and long term Treasuries go into a tailspin, these bonds benefit from their inflation protected top spin. "Right now, after the strongest general market rally since the Great Depression, things feel less gloomy (even though they still look relatively dicey).

Continue reading Inflation protection from Fidelity

Inflation protection from Fidelity originally appeared on BloggingStocks on Wed, 22 Apr 2009 14:30:00 EST. Please see our terms for use of feeds.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

As his top pick for 2009, Jim Lowell -- in his Fidelity Investor newsletter -- opts for a pair of funds that together offer broad market coverage: Fidelity Focused (FTQGX) and Fidelity Low-Priced (FLPSX).

The advisor explains, ""These two fund picks reflect a balanced mix of both offense and defense -- using two managers with decidedly different approaches and investment styles.

"At Fidelity Investor we always 'Buy the manager, not the fund!' Our proprietary manager rankings consistently list Stephen DuFour -- manager at Fidelity Focused Stock -- as a top ranked stock picker (based on his ability to persistently lose less in the downdrafts and consistently outperform on the upside).

"And while losing significantly less than the S&P 500 was 2008's benchmark for success, 2009 is shaping up to be a more balanced trade sheet where I think gains will likely win out.

"DuFour normally invests in 30 to 80 stocks at any one time. His stock picks hold no allegiance to either a simple style box or a singular capitalization range.

Continue reading Top Stock Picks '09: Fidelity Focused (FTQGX) and Low-Priced (FLPSX)

Top Stock Picks '09: Fidelity Focused (FTQGX) and Low-Priced (FLPSX) originally appeared on BloggingStocks on Sat, 03 Jan 2009 17:00:00 EST. Please see our terms for use of feeds.

Jim Lowell is known for his expertise in assessing mutual funds; in particular, he is the newsletter advisory world's leading authority on Fidelity funds.

In his Fidelity Investor, he recently conducted his mid-year ranking of Fidelity managers, and based on these results, offers four favorite funds offering global diversifcation.

"Stephen DuFour, manager of Fidelity Focused Stock (FTQGX), is no stranger to our ranking top notches. He took over this fund in March last year, and turned its performance up a notch (finishing the year up 17% vs. .5.5% for his S&P 500 benchmark): Bam!

"With 52 holdings, this fund is focused. His top 10 basically says it all - a diversified play on global growth in a stock picker's portfolio: Southwestern Energy, Norfolk Southern, Range Resources, T. Rowe Price, NRG Energy, Unilever, Eaton, Cisco, Cabot Oil & Gas, and Apple.

"Tom Soviero, manager at Fidelity Leveraged Company Stock (FLVCX), has jumped from the third spot in the December rankings to the top spot this time around.

"His top-ranked status reflects his stock picking expertise. The portfolio continues to become even more concentrated in his top 10 picks (29.4% of the fund's assets now vs. 27% six months ago).

Continue reading Four favorite Fidelity funds

Four favorite Fidelity funds originally appeared on BloggingStocks on Mon, 11 Aug 2008 13:30:00 EST. Please see our terms for use of feeds.

As a long-standing authority on Fidelity funds, advisor Jim Lowell has extraordinary access to the top managers within the Fidelity family.

Here, the editor of Fidelity Investor offers his personal outlook on Fidelity Magellan (FMAGX) -- which he considers a "smart buy" -- plus highlights from an in-depth interview he recently conducted with Magellan fund manager Harry Lange.

"Magellan is a buy for growth. Make that global growth. Indeed, I would consider this fund a 'stellar' long-term buy. The fund turned $10,000 into over $16 million since its launch back in 1963 compared to that same $10,000 over the same long-term time period being turned into only $800,000 if it had been invested in the S&P 500.

"Magellan is currently considered a large cap growth fund. But Lange can, has and will continue to invest in either growth or value stocks in a range that reaches across the mid- and small-cap borders if it suits him. Foreign holdings make up 26.5% of the portfolio.

"The fund's top ten holdings: Nokia, Corning, Canadian Natural Resources, Staples, Monsanto, Google, Applied Materials, America Movil, Suncor Energy, and Allergan." Meanwhile, in Lowell's latest issue of Fidelity Investor, he interviews Harry Lange. Here is Lowell's Q&A with the Magellan manager:

Continue reading Q&A with Fidelity Magellan's Harry Lange

Q&A with Fidelity Magellan's Harry Lange originally appeared on BloggingStocks on Mon, 26 May 2008 11:30:00 EST. Please see our terms for use of feeds.

Fidelity Select Healthcare (FSPHX) is among the latest additions to the model portfolio maintained by Jim Lowell to his Fidelity Investor. Here's the reasoning behind this "defensive" fund selection.

"I remain bullish long-term, both with regard to the global economy and markets and with specific regard to our own. But, I also remain cautious about any immediate solution to solve what could be even more meddlesome underlying issues with regard to our economy and markets.

"Today's potential for 'recession' now looks more highly correlated to the 1989-1991 recession; driven largely by a speculative housing bubble and the S&L and Equity Line selling frenzy. We're prepared.

"Meanwhile, we have added Fidelity Select Healthcare to our portfolio. Select Healthcare is managed by Matt Sabel. Matt has done what few other recent managers of this fund have been able to do - he's outperformed his
benchmark MSCI US IM Health Care index since taking over the fund in August 2006.

Continue reading Fidelity expert 'selects' Select Healthcare (FSPHX)

Fidelity expert 'selects' Select Healthcare (FSPHX) originally appeared on BloggingStocks on Wed, 13 Feb 2008 20:30:00 EST. Please see our terms for use of feeds.

"In the wake of the worst sell-off since 9/11 for most major European and Asian markets, our Fed finally stopped telling us that the building is on fire and entered the building to rescue what it can with an emergency 75 basis point rate cut," notes Jim Lowell.

The editor of Fidelity Investor explains, "The uppshot is that while the rate cut comes too late to cure what's ailing the markets, it does come as a welcome bowl of chicken soup which will help re-nourish the markets over time; look for more bowls of soup (in the form of more rate cuts) to come."

Lowell continues, "For long-term investors like us, time is on our side. After today's sell off, the standard value indicator for whether the markets are over- or under-valued continues to make the case for stocks being the best long-term buy.

"The P/E on the S&P 500 is hovering around 13 - it was north of 16 just a month back; but even a P/E of 16 is a value call. Bonds of every type and duration, on the other hand, are selling at historically high prices and yielding a
paltry sum. Meantime,

"the US dollar, dinged in knee-jerk reaction to today's Fed rate cut, is likely to gain strength as we wend our way through the next several months since the reality of recession is no longer a US but now a global phenomenon and that bell will toll for foreign currencies.

"Against this backdrop, the dollar will be a solid buy for near-term volatility, bonds will trade on the psychology of fear and uncertainty and US stocks will be the best value for long-term money."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

US stocks still remain 'best value' originally appeared on BloggingStocks on Tue, 22 Jan 2008 13:10:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My top conservative pick for 2008 is Fidelity Large Cap Stock (NASDAQ: FLCSX)," says Jim Lowell, mutual fund expert and editor of The Fidelity Investor.

"Unlike most every diversified growth fund from any fund family, you won't find small-cap stocks in this portfolio. You will find companies with established growth records (based on actual products and actual earnings).

"A top-ranked manager, according to our proprietary manager ranking system, Mat Fruhan came to this fund back in May of 2005 by way of having successfully managed several Fidelity sector funds (including Financial Services, Air Transport, Cyclical Industries, Defense & Aerospace and Consumer Staples, called Food & Agriculture when he ran it back in 2001).

"The fund isn't as growth-oriented as some in his peer group, but despite having financials rule his sector-weighting roost, he's managed to deliver reasonable returns.

"His concentrated portfolio (190 names) and focus on his top ten picks (28% of the fund's assets are invested therein), make this fund a solid choice for participating in what is likely to remain a general flight to quality (ie., a continued climb up the capitalization ladder) in 2008."

Best Stocks for 2008: Established growth from Fidelity Large Cap (FLCSX) originally appeared on BloggingStocks on Wed, 26 Dec 2007 11:45:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"Fidelity China Region (NASDAQ: FHKCX) is my top speculative idea for 2008," says Jim Lowell, mutual fund expert and editor of The Fidelity Investor.

"With regard to China Region, caution will likely always remain my buy word. But, for the first time since this fund's inception back in 1995, this fund is beginning to exhibit characteristics of both the region (Hong Kong, Taiwan, Singapore and Australia that account for 55% of its assets) and China (which now accounts for over 30% of the names in the portfolio -- a year ago that weighting was 6%; in March of this year it was 7%).

"New manager, Wilson Wong, who took the helm in June of this year, is finally enabling this fund to both live up to its name and differentiate itself from Fidelity's and other Asia-focused funds. That's plus one in my book.

Continue reading Best Stocks for 2008: Asian diversity via Fidelity China Region (FHKCX)

Best Stocks for 2008: Asian diversity via Fidelity China Region (FHKCX) originally appeared on BloggingStocks on Sat, 22 Dec 2007 11:45:00 EST. Please see our terms for use of feeds.

For the past two decades, Jim Lowell developed an industry-leading expertise in analyzing mutual funds, with a particular focus on Fidelity funds. During that time he developed an annual feature known as his "Hot Hands" pick.

He explains, "Those who have followed my Fidelity Investor newsletter know that one trick in our proprietary playbook has been buying the previous year's best performing Fidelity fund and sticking with it for the new year. More often than not it turns out to be a big winner."

Given the growing popularity of exchange-traded funds, Lowell recently launched a new service, The Forbes ETF Advisor. And for the first time, he is applying his Hot Hands approach to ETFs.

He cautions that this strategy has not beaten the market every year. However, he says, "It has provided very healthy long-term result and I believe that many growth-oriented investors could improve their performance by putting a reasonable (5% to 10%) portion of their money to work following my Hot Hands strategy."

He explains, "Here are the ground rules for the strategy. First I looked at all of the diversified ETFs for each year between 2000 and 2006. I excluded single-sector ETFs, and on the international side, I excluded the geographically nondiversified (single country) international ETFs.

Continue reading Lowell's hot hands strategy: The #1 ETF for 2007

Lowell's hot hands strategy: The #1 ETF for 2007 originally appeared on BloggingStocks on Wed, 14 Feb 2007 08:10:00 EST. Please see our terms for use of feeds.