Time to jump into small-caps?
cbs.marketwatch.com
>>The latest Fed rate cut could give investors the guts to get back to small-stock funds. John Rekenthaler, Morningstar's director of research, told The Wall Street Journal it's as an "excellent time to be buying small-cap funds." Small stocks are cheaper than large stock equivalents, and investor psychology should turn bullish on small stocks, he figures. Rekenthaler does caution, however, that should the Fed's rate cut fail to prevent a recession, small stocks could get even cheaper.
And then.....
>>Fidelity cutting holdings Managers at Fidelity Investments are cutting the number of stocks held in some of their biggest stock funds, Bloomberg Business News reported. As of Sept. 30, the $65.9 billion Magellan Fund (FMAGX) was holding 351 stocks, down from 523 stocks at the beginning of the year, according to a report released Friday by the nation's largest mutual fund firm. The $31.9 billion Contrafund (FCNTX), with 654 socks in its portfolio in January is now down to 310. "Fidelity has come to the conclusion that spending a lot of time building small positions in a lot of stocks doesn't make a lot of sense," Eric Kobren, president of Fidelity tracking Insight Management told Bloomberg. "That's because even when some of the stocks do really well it doesn't have much of an impact on a fund's overall performance." Kobren believes that the stock paring will continue.<< |
