International Markets: Fidelity Japan Small Companies Fund as a Diversification Play in 2014

The Fidelity Japan Small Companies Fund (FJSCX) was the best performing Fidelity mutual fund in the first part of 2013, but corrected in May and consequently entered into a long consolidation phase. However, FJSCX is starting to show increased relative strength again compared to other mutual funds investing in international markets.

The 1-year FJSCX chart below shows a “pinched” triangle pattern, which will most likely resolve into a decisive breakout or breakdown in the next few weeks. Since Japanese equities are regarded as one of the least correlated markets compared to the S&P 500 index, building a position in FJSCX, should the breakout get under way, can be a good way to diversify in 2014.

fjscx

Source: FidelitySignal.com

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One thought on “International Markets: Fidelity Japan Small Companies Fund as a Diversification Play in 2014

  1. Pingback: International Markets: Fidelity Japan Small Companies Fund as a Diversification Play in 2014 (Update) | Fidelity Trends

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