Fidelity's at it Again

Well folks, remember when I did the blog post about Fidelity encouraging advisors to sell their stock mutual funds a few months ago--- after much of the market has recovered?  Well, they are at it again with a new slick marketing piece.  This is just the inside.  It's more than a postcard this time.

I'd just like to make a few comments on this.  First, they do point out that the market (S&P 500) is up 160% since the low in 2009.  How many of these marketing pieces did Fidelity make like this at the bottom?  Zero.  Stock funds will sell now because stocks are up.

Second, notice the first sentence "Fidelity experts forecast".  Whenever you see the word forecast from your investment professional, you should run, not walk, away.  Forecasting is part and parcel to market timing and stock picking, two activites that are speculating, not investing.

Their comment of "why are your clients avoiding stocks" should more accurately be put "why are you avoiding stocks".  During the market decline we never sold our clients out to cash, gold, or any annuity product.

But, who can blame them.  Fidelity needs to sell funds.  With their gold fund down 46.65% year to date, why not go with what's doing well.