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fidelity 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. 

Best Time to Invest in Mutual Funds - The Best Months to Invest

When is the best time to invest in mutual funds, or the stock market in general. Because of the redemption fees on mutual funds, it can be harder to use market timing to manage the risk in your portfolio. But there are some seasonal influences that can be used to your advantage to help you decide when it’s best to invest in mutual funds, and when to go to cash.

Fidelity ETF - The Story with Fidelity and ETF’s

Fidelity does sponsor an ETF, but the most common way to trade ETFs at Fidelity is through the brokerage arm. Let’s take a look at the Fidelity ETF.

Many fund families have gotten into the business of creating/ sponsoring ETFs. It would seem like a natural move for them, and they did start the process back in 2003 with the Fidelity Nasdaq Composite Indes Tracking Stock (ONEQ is its trading symbol). This is a simple tracking stock, and it has no real distinctive reason for being.

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.

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?

Choosing the Best Fidelity Select Funds

We’ve written before about using relative strength and sector rotation as our way to find the best Fidelity funds. One simple example is shown in this article about a simple Fidelity Select sector rotation system using just one Select fund at a time. That simple example uses just the one month percentage change in price as the strength metric, and it has done quite well over the years. But it is fairly volatile.