Rotation Continues into Large Cap U.S. Equities with the Exception of Energy Stocks

U.S. equities stabilized last Friday after the market sell off in the previous sessions. Increased volatility is not unusual in the fall season, as many of the infamous stock market crashes occurred in October.

The money rotation into large-cap blue chip stocks, which I highlighted in a recent article, has continued as investors are searching for the safety of large, stable companies in an uncertain market environment. As the result, Fidelity funds that invest in this space all show positive relative strength compared to the S&P 500 index. My top picks are the Blue Chip Growth Fund (FBGRX), the Magellan Fund (FMAGX) and the Contra Fund (FCNTX).

fbgrx

fmagx

fcntx

Deflating oil and commodity prices in general has caused the stock price of large cap energy companies to decline, as shown on the chart of the Fidelity Energy Fund (FSENX) below. As commodity prices may eventually bottom in 2015, investments in the energy sector can become attractive again.

fsenx

View investment strategies at FidelitySignal.com

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One thought on “Rotation Continues into Large Cap U.S. Equities with the Exception of Energy Stocks

  1. Pingback: Small Cap Stocks are Hit the Hardest as the Market Correction Unfolds; Avoid the Falling Knives; Large Cap Stocks and Biotechs Can Lead the Market when the Next Rally Arrives | Fidelity Trends

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