US stocks, as measured by the S&P 500, slipped slightly from record levels in trading earlier this week. While the Fed’s interest rate cut has helped propel equities higher over the last several trading sessions, investors are still concerned about economic slowing. I like the Fidelity Small Cap Growth Fund (FCPGX) here, notes Brian Kelly, editor of Money Letter.
We will be scrutinizing labor reports this fall as we continue to evaluate the “soft landing” scenario. As for foreign markets, it was another strong week for our four global indices. Even a slumping Chinese market surged in response to government stimulus. For the Hotline reporting period (September 19 – September 25) the S&P 500 gained 1.9%; the Euro Stoxx 50 was up by 1.7%; the Nikkei 225 gained 4.1%; the Shanghai Composite gained 6.6%.
Fidelity Small Cap Growth Fund (FCPGX)
Maintain your asset allocations. We are recommending a fund upgrade this week in the Fidelity Moderate and Venturesome models.
FCPGX invests primarily in common stocks. It invests at least 80% of its assets in securities of companies with small market capitalizations that Fidelity Management & Research Company LLC (FMR) believes have above-average growth potential. The fund uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions, to select investments.
Recommended Action: Buy FCPGX.
