Explosions at the Boston Marathon Accelerate the Plunge of Global Stock and Commodity Markets; Money Flows to Treasury Bonds

The afternoon explosions at the Boston marathon precipitated a second wave of selling in the financial markets. The largest losses today were in sectors related to natural resources, such as gold and energy. The currently most out-of-favor international markets are Latin America and Eastern Europe. The top gainer was the Fidelity Spartan Long-term Treasury Bond Fund (FLBIX, change: 0.77%).

The greater than 10% drop in the gold sector is an unusually large sell-off that have not been seen in recent years. Gold is highly oversold now and ripe for a relief rally, but we continue to caution investors to stay away from this volatile sector.

Fidelity funds with the largest drops in today’s session:

Fidelity Select Sector Funds Change
Fidelity Select Gold (FSAGX) -11.38%
Fidelity Select Natural Resources (FNARX) -5.27%
Fidelity Select Energy Services (FSESX) -5.07%
Fidelity International Funds Change
Fidelity Global Commodity Stock (FFGCX) -5.44%
Fidelity Latin America (FLATX) -3.70%
Fidelity Emerging Europe, Middle East (FEMEX) -3.27%

Buy/sell signals for Fidelity funds are available at FidelitySignal.com