A remarkable thing happened today. All, I repeat all, of the dozens of Fidelity’s U.S. sector funds closed higher. The winner of the day was the Fidelity Select Banking fund (FSRBX), which represents one of the most beaten down investment sectors. FSRBX gained an incredible +4.46% today.
The rally came in response to positive news about a new opportunity to fix the European debt crisis. From the standpoint of U.S. mutual fund investors the best case scenario is that the market sectors can define a support level at this price point, which will hopefully hold as the historically dangerous fall season approaches.
However, we continue to caution investors from jumping in with risky bets until the financial markets settle down and enter into a nice and easy uptrend.
Mutual fund screens are provided by FidelitySignal.com