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Investment Themes
Capital Markets Strategy Group
Not FDIC Insured May Lose Value No Bank Guarantee
For Investors
Mature U.S. and Global Business Cycles
Note: The diagram above is a hypothetical illustration of the business cycle. There is not always a chronological, linear progression among the
phases of the business cycle, and there have been cycles when the economy has skipped a phase or retraced an earlier one. * A growth
recession is a significant decline in activity relative to a country’s long-term economic potential. We use the “growth cycle” definition for most
developing economies, such as China, because they tend to exhibit strong trend performance driven by rapid factor accumulation and
increases in productivity, and the deviation from the trend tends to matter most for asset returns. We use the classic definition of recession,
involving an outright contraction in economic activity, for developed economies. Source: Fidelity Investments (AART), as of 9/30/19.
2 For Investors
How these trade uncertainties could play out could be critical to
what is next S&P 500 Performance
Trade truce
(1/1/17 – 11/07/19)
(growth reacceleration)
Trump Davos
Trade Uncertainty continues
Speech
S&P 500 (Economies muddle through)
Trade war
(More tariffs & possible recession)
US Govt 10 Yr Yield
Synchronized Global Trade Uncertainties
Recovery (Negotiations continue)
Past performance is no guarantee of future results. It is not possible to invest directly in an index. All market indices are unmanaged. Index performance is not meant to
represent that of any Fidelity mutual fund.
Source: Factset, as of 11/07/2019
3 For Investors
What does late cycle imply from a Macro & Asset market
perspective?
Fed cuts rates/
Yield curve flattens
Source: Fidelity Investments (AART)
4 For Investors
Late Cycle: Less Favorable Risk-Return Profile but still
potentially positive!
Asset Class Performance in Mid- and Late-Cycle Phases (1950–2010)
Stocks High Yield Commodities Investment-Grade Bonds
20%
10%
0%
Mid Late
Mid Cycle: Strong Asset Class Performance Late Cycle: Mixed Asset Class Performance
• Consider economically sensitive assets • Consider inflation-resistant assets
• Broad-based gains • Gains more muted
TIPS: Treasury Inflation-Protected Securities. Past performance is no guarantee of future results. Asset class total returns are represented
by indexes from the following sources: Fidelity Investments, Morningstar, and Bloomberg Barclays. Fidelity Investments source: a proprietary
analysis of historical asset class performance, which is not indicative of future performance.
5 For InvestorsNormal volatility means…..
Equity market corrections occurring at a normal frequency:
• Three corrections per year greater than 5%.
• One correction per year greater than 10%.
• One correction every three years greater than 20%.
Fixed income returns may likely be modest and potentially positive.
Fixed income securities may provide diversification benefits and act as a cushion
against equity market volatility.
Diversification does not ensure a profit or guarantee against a loss
6 For InvestorsBut for now, to fit both dynamics into your portfolio construction
a "Barbell" approach may be worth considering
Risk –Off – A full blown
Risk On - A resolution of
trade war or prolonged
the uncertainties
uncertainties could lead to
regarding future trade
an economic slowdown or
policy could lead to a
even a recession (other
resumption of global
issues to worry: Fed
economic expansion.
Policy, China slowdown)
7 For InvestorsASSET MARKETS
Stocks’ Return Profile Less Favorable During Late Cycle
Historically, this phase of the business cycle has had implications for asset market forward returns. When the
U.S. economy has been in the mid-cycle phase, forward 12-month real returns have been generally positive,
displaying a favorable distribution skewed to above-average returns. But as expansion matures into late cycle,
the forward distribution of real equity returns has typically displayed a less favorable, more negative skew.
Subsequent Stock Market Returns Given Business Cycle Phase (1952–2018)
Late Mid
Frequency
4
3
2
1
0
-48% -43% -38% -33% -29% -24% -19% -14% -10% -5% 0% 5% 9% 14% 19% 24% 28% 33% 38% 43%
Total Return over the Next 12 Months
Past performance is no guarantee of future results. The above charts are density plots generated from the 12-month forward returns of a U.S. Equity
8 Index sourced from Fidelity Investments. Source: Standard & Poor’s, Fidelity Investments (AART), as of 9/30/19.With trade truce (our base case), business cycle could elongate
as the U.S. consumer trends are still in very good shape
Unemployment is historically low… …U.S. Consumers will likely benefit from lower oil prices and…
Source: Factset , as of 11/07/19
Source: Strategas, 08/01/2019
…housing is improving due to a reprieve in interest rates Personal savings has improved
Personal saving as % of disposable personal income
12.0
10.0
8.0
6.0
4.0
2.0
0.0
2000Q1
2000Q4
2001Q3
2002Q2
2003Q1
2003Q4
2004Q3
2005Q2
2006Q1
2006Q4
2007Q3
2008Q2
2009Q1
2009Q4
2010Q3
2011Q2
2012Q1
2012Q4
2013Q3
2014Q2
2015Q1
2015Q4
2016Q3
2017Q2
2018Q1
2018Q4
Source: U.S. Bureau of Economic Analysis (2000 Q1 – 2019 Q2)
Source: Strategas,11/04/2019
9
For InvestorsBut if trade uncertainties linger, the weakness currently seen
on the business side could spill over to the consumer
Manufacturing remains under pressure... …while Business sentiment softened…
Source: Strategas, 11/01/2019 Source: Strategas, 11/04/2019
…Capex plummeted… …& Non-residential construction restrained
Source: Strategas, 11/04/2019
Source: Strategas, 07/26/2019
10
For InvestorsYield Curve Inversion Typical During Late Cycle
ECONOMY
Ten-year Treasury bond yields remained below 3-month Treasuries, keeping the yield curve inverted. Curve
inversions have preceded the past seven recessions and may be interpreted as the market signaling weaker
expectations relative to current conditions. The time between inversion and recession has varied considerably,
however, and the curve also has flashed two “head fakes” in which expansion lasted for at least two more years.
U.S. Treasury Yield Curve
10-Year Minus 3-Month Yield
Yield Spread
6%
5% Yield Curve Inversions
4% • Occurred before the last 7
recessions
3%
• Occurred twice without a
2% recession (1966,1998)
1% • Recessions started 4 to 21
months after inversion
0%
• Un-inversions often occurred
-1% prior to recession
-2%
-3%
-4% 0.1
1965
1968
1971
1974
1977
1980
1983
1986
1989
1992
1995
1998
2001
2004
2007
2010
2013
2016
2019
Shading represents U.S. economic recession as defined by the National Bureau of Economic Research (NBER). Source: Bloomberg
11 Financial L.P., NBER, Fidelity Investments (AART), as of 9/30/19.Equities and Sector Opportunities 12 For Investors
Corporate Earnings Source: Factset 13 For Investors
Valuations
CURRENT P/E VS. 20-YEAR AVERAGE P/E
(Below 100% Undervalued Relative To Long Term Average)
Value Blend Growth
Large-Cap 108% 114% 123%
Mid-Cap 104% 108% 125%
Small-Cap 95% 111% 152%
Source: Current - FactSet Market Aggregates, Russell Investments. 20yr- FactSet Market Aggregates historical data, P/E ratios are calculated
based on FMA consensus estimates of earnings over the next twelve months (NTM). P/E (price/earning) Ratio: A valuation ratio of a company’s
current share price compared to its per-share earnings. As of 10/31/19.
14 For InvestorsLong term we are still in a secular bull market that started in
2013
DJ Industrial Average
Peak to Next
100,000 Secular Bull
2001–2013?
10,000 Peak to Next
Secular Bull
1969–1982
Peak to Next
1,000
Secular Bull
1929–1942
100
10
1900 1905 1910 1916 1921 1927 1932 1937 1943 1948 1953 1959 1964 1970 1975 1980 1986 1991 1996 2002 2007 2012 2018
Source: Factset as of 12/31/2018
Past performance is no guarantee of future results. It is not possible to invest directly in an index..
15 For InvestorsASSET MARKETS
Business-Cycle Approach to Equity Sectors
A disciplined business-cycle approach to sector allocation can generate active returns by favoring industries
that may benefit from cyclical trends. Economically sensitive sectors historically have performed better in the
early and mid-cycle phases of an economic expansion. Meanwhile, companies in defensive sectors that have
more stable earnings have tended to outperform late in the cycle and particularly during recessions.
Business-Cycle Approach to Sectors
EARLY CYCLE MID CYCLE LATE CYCLE RECESSION
Sector
Rebounds Peaks Moderates Contracts
Financials +
Real Estate ++ --
Consumer Discretionary ++ - --
Information Technology + + -- --
Industrials ++ --
Materials + -- ++
Consumer Staples ++ ++
Health Care -- ++ ++
Energy -- ++
Communication Services + -
Utilities -- - + ++
Economically sensitive sectors Making marginal portfolio Defensive and inflation- Since performance is generally
may tend to outperform, while allocation changes to manage resistance sectors tend to negative in recessions,
more defensive sectors have drawdown risk with sectors perform better, while more investors should focus on the
tended to underperform. may enhance risk-adjusted cyclical sectors most defensive, historically
returns during this cycle. underperform. stable sectors.
Past performance is no guarantee of future results. Sectors as defined by GICS. White line is a theoretical representation of the business cycle as it
moves through early, mid, late, and recession phases. Green and red shaded portions above respectively represent over- or underperformance
relative to the broader market; unshaded (white) portions suggest no clear pattern of over- or underperformance. Double +/– signs indicate that the
sector is showing a consistent signal across all three metrics: full-phase average performance, median monthly difference, and cycle hit rate. A single
+/– indicates a mixed or less consistent signal. Returns data from 1962 to 2016. Source: Fidelity Investments (AART), as of 6/30/19.
16 For InvestorsHealthcare – Favorable Demographics
Aging demographics is a global phenomenon…in the U.S., approximately 10,000
people turn 65 every day
Source: Top & Bottom left: JP Morgan, Center for Medicare and Medicaid Services, Census Bureau as of 11/30/17;
Right chart: World Bank as of 12/31/15.
17 For InvestorsA trade resolution could be much more beneficial to the
rest of the world
EXPORTS AS A SHARE OF GDP
GOODS & SERVICES EXPORTS, 2017
Canada Exports to U.S.
Exports to EU
UK
Exports to EM ex. China
Euro Area Exports to China
Exports to Other
Japan
U.S.
Taiwan
South Africa
Korea
Mexico
Russia
China
India
Brazil
0% 20% 40% 60%
Source: Strategas / International Monetary Fund (IMF) DOTS As of 09/30/2018
18 For InvestorsChina’s Policies Could Be Supportive of Global Growth for 2019
KEY: ⚫ U.S. ⚫ China
Cycle Phases EARLY MID LATE RECESSION
Inflationary Pressures China Stimulus % GDP
Red = High Q1 Q3
Q4 Q1
2019: 3.0% e
Q2 3.5
March 2019 More Than 2016!
Q4–Q3 Tax Spending
3.0
+
Economic Growth 2.5
–
Relative Performance of 2.0
Economically Sensitive Assets
Green = Strong 2016-2017 2018 2019
1.5
Cycle Phases EARLY MID LATE RECESSION 1.0
Inflationary Pressures Q3–Q4 2017
Red = High Q1 2018
Q2 2017 0.5
Q1
Q2–Q3 2018
0.0
Q4 2018
CONTRACTION
+ -0.5
Economic Growth 15 16 18 19
Q4 Q1 2019 17
–
Relative Performance of Q1–Q2 2016 March 2019
Economically Sensitive Assets
Green = Strong 2017 2018 2019 2016
Note: The diagram above is a hypothetical illustration of the business cycle. There is not always a chronological, linear progression among the phases of the business cycle, and
there have been cycles when the economy has skipped a phase or retraced an earlier one. * A growth recession is a significant decline in activity relative to a country’s long-term
economic potential. We use the “growth cycle” definition for most developing economies, such as China, because they tend to exhibit strong trend performance driven by rapid
factor accumulation and increases in productivity, and the deviation from the trend tends to matter most for asset returns. W e use the classic definition of recession, involving an
outright contraction in economic activity, for developed economies.
The diagram above is a hypothetical illustration of the business cycle. There is not always a chronological, linear progression among the phases of the business cycle, and there
have been cycles when the economy has skipped a phase or retraced an earlier one. Source: Fidelity Investments (AART) using quarter business cycles from Q1 2016 – Q1
2019. Source for right Chart: Factset, National Bureau of Statistics of China, Caixin, Cornerstone Macro as of 12/31/18.
For Investors
19International Equities – Valuations look attractive
U.S. Equities open unprecedented gap with Non-U.S.
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$-
12/1972
02/1974
04/1975
06/1976
08/1977
10/1978
12/1979
02/1981
04/1982
06/1983
08/1984
10/1985
12/1986
02/1988
04/1989
06/1990
08/1991
10/1992
12/1993
02/1995
04/1996
06/1997
08/1998
10/1999
12/2000
02/2002
04/2003
06/2004
08/2005
10/2006
12/2007
02/2009
04/2010
06/2011
08/2012
10/2013
12/2014
02/2016
04/2017
06/2018
08/2019
S&P 500 MSCI World ex US
Source: Morningstar as of 10/31/19. Past performance is no guarantee of future results. It is not possible to invest directly in an index. Index
performance is not meant to represent that of any Fidelity mutual fund. US equities are represented by the S&P500. Global equities ex-US is a
custom Global Financial Data World Index.
20
For InvestorsASSET MARKETS
Equity Valuations Mixed Relative to History
Continued rising stock prices in the U.S. moved equity valuations higher during Q3, pushing them further
above their long-term historical average. Price-to-earnings (P/E) ratios for Non-U.S. developed and emerging
markets remained below their long-term averages.
Global Market P/E Ratios
DM Trailing P/E EM Trailing P/E U.S. Trailing P/E Forward P/E
Ratio
30
25
Forward
P/E
20 DM Long-Term Average
U.S. Long-Term Average
U.S.
EM Long-Term Average
15
DM
EM
10
5
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
DM: Developed Markets. EM: Emerging Markets. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All
indexes are unmanaged. See Appendix for important index information. Price-to-earnings ratio (P/E): stock price divided by earnings per share. Also
known as the multiple, P/E gives investors an idea of how much they are paying for a company’s earnings power. Long-term average P/E for Emerging
Markets includes data for 1988–2017. Long-term average P/E for Developed Markets includes data for 1973–2016, U.S. 1926–2017. Foreign
21 Developed—MSCI EAFE Index, Emerging Markets—MSCI EM Index. Source: Bloomberg Financial L.P., Fidelity Investments (AART) as of 9/30/19.Secular Forecast: Slower Global Growth, EMs to Lead
Slowing labor force growth and aging demographics are expected to tamp down global growth over the next
two decades. We expect GDP growth of emerging countries to outpace that of developed markets over the
long term, providing a relatively favorable secular backdrop for emerging-market equity returns.
Real GDP 20-Year Growth Forecasts vs. History
Developed Markets Emerging Markets Last 20 Years
Annualized Rate
10%
Global Real GDP Growth
9%
Last 20 years 20-year forecast
8%
2.7% 2.1%
7%
6%
5%
4%
3%
2%
1%
0%
Spain
Japan
Canada
Mexico
Sweden
Colombia
U.S.
Peru
Brazil
Germany
Netherlands
Turkey
South Africa
Australia
UK
South Korea
Italy
France
China
Indonesia
Russia
Thailand
Malaysia
India
Philippines
EM: Emerging Markets. GDP: Gross Domestic Product. Source: OECD, Fidelity Investments (AART), as of 5/31/18.
22 For InvestorsGrowth in “Middle Class” Households
NUMBER OF MIDDLE CLASS GROWTH OF MIDDLE CLASS
450
HOUSEHOLDS HOUSEHOLDS
USA India China
1991-2030E
400
Japan Brazil Indonesia 16%
14.2%
350
14%
300
12%
No. of Households in Millions
11.4%
10.4%
250
10%
200
8%
150
6%
4.7%
100
4%
50
2%
1.1%
0 0.4%
1991
1994
1997
2000
2003
2006
2009
2012
2015
2018E
2021E
2024E
2027E
2030E
0%
Japan USA Brazil Indonesia India China
Source: Used with permission, Morgan Stanley Asia/GEMs Equity Strategy Team, 12/31/15.
23 For InvestorsChinese and India’s Middle Income Household Growth
Provides Multiple Opportunities
CHINA IS THE WORLD’S LARGEST AUTO MARKET AND INDIA IS SMALL TODAY, BUT HAS THE BEST LONG-
IS STILL GROWING TERM GROWTH POTENTIAL
R² = 0.79
25 23.6 900
USA Iceland
800
Italy Australia
20 700 Canada
2016 PV Sales Volume (mn) Units)
Poland
Vehicles per 1000 people
Estonia Finland
Spain Japan
16.0 Germany
600 Greece Sweden
Bulgaria Czech Slovenia France Belgium
15
Portugal Netherlands
500 S Korea
Denmark
RomaniaArgentinaSlovakia
10 400 Latvia
Russia Hungary
Brazil
300 Serbia Croatia
Malaysia Uruguay
Mexico
Iran Chile
5 4.1
3.4
2.8 2.7
200 Venezuela
2.0 1.9 1.8 1.8 1.5 1.5 Morocco Ecuador Turkey
1.3 1.2 1.1 Ukraine China
100
Indonesia
0 India
Iran
Japan
Russia
India
France
Mexico
USA
Germany
UK
Brazil
Italy
China
Canada
Spain
Korea
0
0 10000 20000 30000 40000 50000 60000
GDP per Capita (USD)
Source: Euromonitor as of 12/31/ 2016.
24 For InvestorsLong-Term Opportunity in Emerging Markets
FOOD SPENDING VS. GDP PER CAPITA
$7,000
Food & Bevg Spend per capita (US$)
$6,000
$5,000 Japan
U.S.A.
$4,000 Germany
$3,000
Russia
Brazil
$2,000
China
$1,000
India
$0
0 10000 20000 30000 40000 50000 60000 70000
GDP per capita (US$)
Source: World Bank, USDA, Global Social Change Research Project, 2013
25 For InvestorsFixed Income 26 For Investors
Interest rate increase has been gradual
Interest rates are high in the U.S.
The rise in rates is self regulating in itself.
Source: Top: Factset as of 11/26/19. Bottom: Factset as of 11/26/19.
27 For InvestorsUnintended Consequences of Extraordinary Monetary Policy
LONG-TERM
Starting in 2014, five major central banks, including the BOJ and ECB, enacted negative policy rates in an effort
to boost inflation, bank lending, and economic growth. In fact, the impact of negative rates in Europe and Japan
has run counter to the intended goals. Aging consumers raised savings rates amid lower interest income, bank
lending stayed weak as low loan rates pressured banks’ profit margins, and inflation remained well below target.
Negative Policy Rate Considerations Global Bank Stocks
Intended Central Unintended U.S. Japan Europe
Bank Goals Consequences Price Index: June 30, 2014 = 100
170
Stimulates savings 160
Stimulates
consumption (German consumers
increased savings rate) 150
140
Hurts bank margins,
Incentivizes reduces loan supply 130
bank lending (European/Japan banks
in doldrums) 120
110
Reduces debt Keeping weak firms alive, 100
service burden low productivity
90
80
Weakens Limited impact in a world of 70
currency low policy rates
Mar-15
Mar-18
Dec-15
Dec-18
Jun-14
Sep-16
Jun-17
Sep-19
Bank stocks represented by MSCI Financials Index at regional level in local currency. Source: Bloomberg Finance L.P., Fidelity Investments
28 (AART), as of 9/30/19.Nominal GDP and 10- Year U.S. Treasury
Highly Correlated
10-Year U.S. Treasury GDP
16
14
12
10-Year U.S. Treasury
10
(%)
8
GDP
6
4
2
0
6/68 6/73 6/78 6/83 6/88 6/93 6/98 6/03 6/08 6/13 6/18
Source: Bloomberg as of 6/30/2018. GDP as of 03/31/2018. GDP data represents annualized 20-quarter percent change. Past performance is no guarantee of
future results.
29 For InvestorsConsider maintaining a core holding in investment grade
bonds
When Stocks Fall, Bonds Tend to Stabilize Portfolio Returns
Bond Returns in Years when Stocks Were Down, 1926–2018
Stocks Investment-Grade Bonds CALENDAR YEAR TOTAL RETURN (%)
20
10
0
-10
-20
-30
-40
-50
1929 1930 1931 1932 1934 1937 1939 1940 1941 1946 1953 1957 1962 1966 1969 1973 1974 1977 1981 1990 2000 2001 2002 2008 2018
Source: Morningstar EnCorr and Fidelity Asset Allocation Research Team (AART), as of 12/31/18. Investment-grade bond returns are represented by
the Bloomberg Barclays (BBgBarc) U.S. Aggregate Bond Index from January 1976 and by a composite of the IA SBBI U.S. Intermediate-Term
Government Bond Index (67%) and the IA SBBI U.S. Long-Term Corporate Bond Index (33%) from January 1926 through December 1975. Stock
returns are represented by the performance of the S&P 500® Index. Past performance is no guarantee of future results. It is not possible to invest
directly in an index. All market indices are unmanaged. Not intended to represent the performance of any Fidelity fund.
30 For InvestorsWhy Bonds Now? The Durability of Bond Returns
Incepted in 1976, the Bloomberg Barclays U.S. Aggregate Bond Index (AGG) has had only 3 years of
negative returns—all during a falling rate environment. Fidelity created a synthetic AGG back to 1940 that
covers the 40-year period of rising rates from the 1940s to the 1980s. During the entire period, the worst loss
was 3.2%.
AVERAGE ANNUAL RETURN: 5.3%
Annual
Positive Annual Return
Return 10-Year Treasury Yield Negative Annual Return
35%
30%
25%
Average Annual Return (%)
20%
15%
10%
5%
0%
-0.2% -0.6%-0.3% -1.6%
-0.6%
-1.0% -0.8%
-2.6% -3.2% -2.9% -2.0%
-5%
1940 1944 1948 1952 1956 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Source: Bloomberg, as of 12/31/18. Bond returns from 1940 to 1975 are based on Fidelity Investments’ “Synthetic Aggregate” represented by 67% intermediate government bonds and
33% long-term corporate bonds. Investment-grade bond returns are represented by the Bloomberg Barclays (BBgBarc) U.S. Aggregate Bond Index from January 1976 and by a
composite of the IA SBBI U.S. Intermediate-Term Government Bond Index (67%) and the IA SBBI U.S. Long-Term Corporate Bond Index (33%) from January 1926 through December
1975. Past performance is no guarantee of future results. It is not possible to invest directly in an index. All market indices are unmanaged.
Not intended to represent the performance of any Fidelity fund.
31 For InvestorsAppendix - 32 For Investors
China growth dynamics over the last 40 years
Source: https://www.linkedin.com/pulse/looking-back-last-40-years-reforms-china-ray-dalio/
Past performance is no guarantee of future results.
33 For InvestorsImportant Information Information provided in this document is for informational and educational purposes only. To the extent any investment information in this material is deemed to be a recommendation, it is not meant to be impartial investment advice or advice in a fiduciary capacity and is not intended to be used as a primary basis for you or your client’s investment decisions. Fidelity and its representatives may have a conflict of interest in the products or services mentioned in this material because they have a financial interest in them, and receive compensation, directly or indirectly, in connection with the management, distribution, and/or servicing of these products or services, including Fidelity funds, certain third-party funds and products, and certain investment services. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market and other conditions. Unless otherwise noted, the opinions provided are those of the authors and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information. Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any security, sector, or investment strategy. In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation, credit, and default risks for both issuers and counterparties. (Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible.) Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. 34 For Investors
Important Information
All indices are unmanaged and performance of the indices include reinvestment of dividends and interest income, unless otherwise noted, are not illustrative of any
particular investment and an investment cannot be made in any index.
S&P 500 Index is a market capitalization-weighted index of 500 widely held U.S. stocks and includes reinvestment of dividends. S&P 500 is a registered service mark
of Standard & Poor's Financial Services LLC.
Dow Jones Industrial Average, published by Dow Jones & Company, is a price–weighted index that serves as a measure of the entire U.S. market. The index
comprises 30 actively traded stocks, covering such diverse industries as financial services, retail, entertainment, and consumer goods.
MSCI EAFE Index is a market capitalization-weighted index that is designed to measure the investable equity market performance for global investors in developed
markets, excluding the U.S. & Canada.
MSCI Emerging Markets Index is a market capitalization-weighted index that is designed to measure the investable equity market performance for global investors in
emerging markets.
MSCI ACWI (All Country World Index) ex USA Index is a market capitalization-weighted index designed to measure the investable equity market performance for
global investors of large and mid-cap stocks in developed and emerging markets, excluding the United States.
Bloomberg Barclays U.S. Aggregate Bond is a broad-based, market-value-weighted benchmark that measures the performance of the investment grade, U.S. dollar-
denominated, fixed-rate taxable bond market; sectors in the index include Treasuries, government-related and corporate securities, MBS (agency fixed-rate and
hybrid ARM pass-throughs), ABS, and CMBS.
IA SBBI U.S. Intermediate-Term Government Bond Index is an unweighted index that measures the performance of five-year maturity U.S. Treasury bonds. Each
year, a one-bond portfolio containing the shortest non-callable bond having a maturity of not less than five years is constructed.
IA SBBI U.S. Long-Term Corporate Bond Index is a custom index designed to measure the performance of long-term U.S. corporate bonds.
The health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could
have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations.
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(3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any
use of this information. Fidelity does not review the Morningstar data. For mutual fund performance information, you should check the fund’s current prospectus for
the most up-to-date information concerning applicable loads, fees, and expenses.
35 For InvestorsPast performance is no guarantee of future results.
Investing involves risk, including risk of loss.
For Investors
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