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IN THIS ISSUE: Natural gas prices, a market hypothesis, and Roth conversions |
GOOD START
Investors who do these 6 things could help increase their success in every type of market. |
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THE HEADLINES
The January barometerWhat happened: The S&P 500 Index®1 was up a modest 1.4% year to date at the end of January.2 That could be good news if you believe in the January barometer: the idea that January’s market performance signals how stocks will do for the rest of the year.
Here’s why: Since the end of WWII, positive S&P 500 returns in January have led to stocks finishing up 86% of the time for the full year (with an average gain of 16.2% during those years).3 But remember, past performance doesn’t guarantee future results. |
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What it means for you: Calendar-based trading patterns should be taken with a grain of salt. Each year is unique, and factors impacting the market are constantly changing (see: the news cycle this month).
Stocks appear to have momentum anyway, and the January barometer suggests 2026 may be another good year for investors. In fact, one Fidelity pro thinks the stock market might be even stronger than it looks. Find out her 3 top signals to watch now. |
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Heating up—and downWhat happened: Late last month, US natural-gas prices peaked at over $6 for the first time since 2022 before moderating in early February.4
Here’s why: Historic cold and recent storms have increased demand for heating, impacting production and supply. That trend changed course when a forecast came out predicting warmer weather on the way, despite what the groundhog said.
What it means for you: You might still notice bigger energy bills through March—the US Energy Information Administration forecasted natural gas prices to be up 22% this winter compared to last winter.5 Electricity costs could also spike from heightened usage as winter rolls on. (Car gas prices have ticked up recently too, but they’re less influenced by natural gas than crude oil, which is rising possibly because of geopolitical tensions.) For now, help
trim your utility bills with these 7 tricks—one could save you as much as 30%.
You could even think about whether investing in gas fits with your time horizon, risk tolerance, and goals. Here are some ways to invest in energy. |
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Tax scammersWhat’s happening: Phone scams claiming you owe back taxes are on the rise.
Here’s why: The IRS began accepting tax returns on January 26. That spurred con artists to prey on taxpayers, impersonating IRS agents or reps of a “resolution oversight company” or “tax mediation and resolution agency.” Their goal: to steal personal information, like Social Security numbers, or charge bogus tax debt relief fees, according to the Federal Trade Commission.
What it means for you: The IRS will always reach out by mail first, so tax-related calls, text messages, and emails are likely phony. Consider filing early to thwart would-be fraudsters—they can’t submit a return in your name and claim your refund if you’ve already filed. That’s not the only benefit to filing taxes early.
Fidelity customer? Here’s how we safeguard your info. |
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HOW TO
Try the tax-advantaged stacking strategyPrioritizing contributions to certain accounts could help you optimize savings. |
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QUICK Q
I earn too much for a Roth IRA but like its tax advantages. Are there other ways to get these benefits?You might consider a Roth conversion. This is when you convert assets in a traditional IRA or employer-sponsored retirement plan to Roth assets. Converting means paying taxes now on tax-deferred balances, but there are future perks including the following.
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Withdrawals of earnings are tax-free, and penalty-free provided the 5-year aging requirement is met and you are at least 59½, or meet one of several exceptions.
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There are no required minimum distributions starting at age 73.
You have a few different options for converting: backdoor, mega-backdoor, or traditional. Find out which conversion may be best for you. |
