Sector Rotation: Telecom Stocks Turn Negative

Weak earnings, fierce competition, and confusion about the value of new product offerings have contributed to the under-performance of the telecom sector in 2017.

Chart 1. shows that the price pattern of the Fidelity Select Telecommunications Fund (FSTCX)  turned negative earlier this week. We think that investors may be best served by avoiding this sector until the current consolidation phase completes.


Chart 1.

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