We’re changing out some funds this month, recommending a growth fund whose top five holdings include: Amazon.com Inc (AMZN, 7.88% of assets); Apple Inc (AAPL, 7.56%);
Alphabet Inc A (GOOGL, 6.78%); Microsoft Corp, (MSFT, 3.91%); and Facebook Inc A (FB, 3.52%); and selling three previous ideas.
Buy: Fidelity Blue Chip Growth (FBGRX)
From Fidelity Monitor & Insight
Heading into the recent correction, valuations on the S&P 500 were roughly in line with their historical average with a 12-month trailing P/E of 19.4 versus 19.2 over the past 25 years. In short, the conditions for a bear market are not yet present.
We recommend Fidelity Blue Chip Growth (FBGRX) as an aggressive large-cap option, which has a 31.3% exposure to technology and 27.2% to FAANG stocks (Facebook, Apple, Amazon, Netflix and Alphabet’s Google).
Jack Bowers, John M. Boyd and John Bonnanzio, Fidelity Monitor & Insight,
www.fidelitymonitor.com, 800-397-3094, November 2018