Best Fidelity Funds for 2014 – Part 1: Bond Funds

Rising interest rates created a bear market for bonds resulting in most bond mutual funds loosing value in 2013. Unfortunately, there are just not many good choices for income investors.

One of the few exceptions is high-yield corporate bonds and one of the best mutual funds available to participate in this trend is the Fidelity Capital and Income Fund (FAGIX).

Despite the name, FAGIX is not a growth and income fund, but a high-yield bond fund, based on the Morningstar classification. The 4.32% yield and the 7.01% year-to-date return sets FAGIX apart of most bond funds. We would continue to stay bullish on FAGIX, as long as the trendline (see blue line on chart) and the 50-day moving average holds.

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Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

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5 thoughts on “Best Fidelity Funds for 2014 – Part 1: Bond Funds

  1. Pingback: Best Bond Funds for 2014 • Mutual Funds

  2. Pingback: Best Fidelity Funds for 2014 – Part 5: International Diversification (final part) | Fidelity Trends

  3. Pingback: Best Income Funds for 2014: Fidelity Real Estate Income Fund is Turning Bullish | Fidelity Trends

  4. One Of The Big Idea of the Last 50 Years was the contribution of Milton Friedman who proposed the Free To Choose Floating Currency Regime. President Nixon took the US off the Gold Standard, and the US became the International Reserve Currency, which enabled the US to rise to become the global hegemonic kick ass empire, beginning with the Vietnam War, replacing the former hegemon, that being the British Empire.

    Another Big Idea were the schemes of Global ZIRP, which began when in 2008, when the US Fed traded out “money good” US Treasuries for Distressed Investments of all types, such as those traded in Fidelity Investments FAGIX Mutual Fund, and which provided the basis for global growth, and more importantly, to generate investment, in what would become the Summer Bloom and Fall Glory of the age of credit, that was underwritten by the Milton Friedman Free To Choose Architecture.

    Now deleveraging and derisking out of World Stocks, VT, will stimulate Major World Currencies, DBV, and Emerging Market Currencies, CEW, to trade lower, beginning Kondratieff Winter where regional currencies, and non-dollar bartering, that is undollar currency regimes, will govern economic relations. A Ten Toed Kingdom of regional government of iron diktat and clay totalitarian collectivism, seen in Daniel’s Statue of Empires of Daniel 2:25-45, will soon replace the former two world empires. Debt deflation will stimulate Aggregate Credit, AGG, to trade lower, in a see-saw destruction of Equity Investments together with Credit Investments.

    Trust in the US Fed’s purchases of 30 Year US Government Bonds, EDV, Ten Year Notes, TLT, and Mortgage Backed Bonds, MBB, has increased the supply of money needed to provide investment liquidity and produce economic growth. Peak Wealth has been achieved; it came via an awesome moral hazard based prosperity. Now, the investor’s risk appetite has turned to risk aversion, as investors fear that the Fed’s monetary policies have crossed the rubicon on sound monetary policy, and have made money good investments bad.

    It’s Global ZIRP no more. The bond vigilantes are in control of interest rates globally, and will be calling the Interest Rate on the US Ten Year Note, $TNX, higher from 2.6%, as well as steepening the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

    The world has attained peak wealth. Successful investing in the Pursuit of Yield Investments, such as PHO, GRID, PSP, IST, DBU, DRW, PGF, PUI, and the High Yielding Debt Investments, such as JNK, and HYMB is history.

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