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best mutual funds

Sector Trading - There is a Bullish Sector Somewhere

Do you look at the mutual fund rankings that magazines publish every year? The performances can often be eyepopping. Have your ever seen a year that the best performing mutual funds had a loss?  Of course not, there’s always secgtor funds that have a good year, even in the bear market years. It might be energy sector or medical sector, or foreign country mutual funds that have a good year. 

Building a Diversified Portfolio - The Best Mutual Funds

In another article we looked at managing risk (as measure by the standard deviation of returns) by combining funds in our portfolio that were uncorrelated, (that is they don’t track each other very well on a day to day basis.)

How does this work out when applying it to a typical mutual fund portfolio?

Let’s start by taking a quick look at one of the standard examples.

Our Best Diversified Mutual Fund Allocation

Here we take a look at techniques you can use to build our best diversified mutual fund allocation, which helps manage the risk in your mutual fund portfolio.

In other articles we found that using uncorrelated funds assembled in a portfolio gave us a powerful tool to manage risk, while maintaining good portfolio returns.

Finding the Best Mutual Funds for Diversification

Finding the best mutual funds for diverifying your portfolio is a little tricky these days. If you’ve done any reading or watched any TV on the topic of investing, you’ve undoubtedly run into the topic of diversification, and heard how important it is.

It’s often the only real form of portfolio risk management that is generally recommended in the popular press, but it seems to often that folks write about it without really comprehending what makes it work. While the math can get complex, the basic ideas behind diversification are simple enough to follow.

Fund Correlation Calculator to Build a Truly Diversified Portfolio

In another article we discussed measuring risk using standard deviation. Here we will spend just a little more time to introduce the magic of statistics and how understanding standard deviation and other simple statistical measures can reduce your portfolio risk.

What is correlation? Simply put, it’s a measure of how closely two investments track one another. The unit of measure is the correlation coefficient, which can vary in magnitude from 0 (not correlated at all) to 1 (exactly tracking).

Sector Rotation Strategy - Simple Rotation Trades Just One Fund a Month

This sector fund trading system uses a strategy of sector rotation that only trades one fund at a time from the Fidelity sector funds (the Select Funds). It’s performance is pretty good overall, although it tends to have drawdowns at least as deep as the overall market.

The overall stock market has had a run of flat performance over the last several years. If you look at the performance of the S&P 500 from 1999 through 2005, you’ll see that it was up about 0.2% compounded annual return, not much better than a money market fund, and the Nasdaq 100 has fared even worse. Granted, it got there in an interesting way, but overall it basically went nowhere.

Best Fidelity Funds to Diversify Your Portfolio

We get a lot of questions about the best funds to build a well diversified portfolio. There are many factors that go into it, but here is an article we published that describes one way to identify some good candidates. This article builds around the Fidelty funds, but the same approach can be used to select ETFs to get many of the same benefits.

Almost any article in the popular press about building an investment portfolio is quick to advise that you need to build a diversified portfolio. You then get some rule of thumb about buying stocks and bonds, or you need to buy 8 stocks from different industries, or you need 5% in precious metals or international stocks.

What Are the Best ETF’s to Trade

What are the best ETFs to trade? We often get questions about the list of ETF’s we use, and why we “only use 50 Exchange Traded Funds” in our system. Aren’t we leaving money on the table, and shouldn’t we be trading all the available ETF’s in order to get the best possible returns from our system?

Which Fidelity Select Funds Do We Use

One of the more common questions we get: Which Fidelity Funds do you use for your system? Why don’t you use all of them?

The Best Mutual Funds and ETF Trades | Choosing the Best Mutual Funds

The most common question: How do we make our mutual fund and ETF trading system selections? Ours is a system based on sector rotation using a relative strength. We touch on this in our fund trading course, but we often get asked to supply more information on our systems. Today we will start a small series of postings on just how we select our funds.