Large Price Drop of Multiple Fidelity Funds is due to Capital Gains Distribution

Investors may have been alarmed by the large price drops of several Fidelity funds at the end of the Friday trading session. The drop in the net asset value (NAV) of these funds was largely due to the distribution of capital gains, which happens periodically. For more details click below:

Here are a few examples of Fidelity funds with large price drops:

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Equity Markets Correct Around the Globe; Latin American Stocks and the Energy Services Sector are Hit the Hardest

Renewed worries about the slowing Chinese economy caused the sell off of equity markets around the globe today. The rapid devaluation of the Argentine currency had a negative impact on Latin American markets resulting in the Fidelity Latin America Fund (FLATX) being the worst performer of all Fidelity funds. The sell off spread to Asia, as well, resulting in the Fidelity Southeast Asia Fund (FSEAX) entering a bearish downtrend. The weakest U.S. equity fund today was the Fidelity Select Energy Services Fund (FSESX).

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View the top 10 Fidelity funds at FidelitySignal.com

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Sector Rotation: Three Fidelity Technology Funds are Moving to the Top

The question about the tapering of the Fed’s QE3 program dominated the markets today. The S&P 500 index managed a modest gain of 0.63% and closed at 1786.54.

As the broad U.S. equity averages continue to stay in bullish territory, one of the most important changes in market dynamics is the re-emergence of technology, as one of the market leading sectors. Fidelity has several tech funds that can help investors to take advantage of this new trend. Here we highlight three of them:

The Fidelity Select Electronics Fund (FSELX) was the best-performing Fidelity mutual fund today (source: www.fidelitysignal.com/market_indicators). FSELX top holdings include large cap technology companies, such as Intel, Broadcom, Qualcomm and Micron. FSELX reached a new 52-week high today and we would not be surprised to see it become one of the top funds in the next market cycle.

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The other two tech funds we’d like to highlight are the Fidelity Select Software and Computer Fund (FSCSX) and the Fidelity Select IT Services Portfolio Fund (FBSOX). Both funds continue to show an almost uninterrupted bullish trend since the April market correction.

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

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The 2013 Capital Gains Distributions for Fidelity Funds are Available Now

On Friday, several Fidelity funds experienced large drops of their net asset values (NAVs). For example, the Fidelity Magellan fund showed a 5.57% drop. Other examples include the Latin America Fund (down 17.79%), the China Region Fund (down 9.2%) and the Select Technology Fund (down 6%).

The explanation is that Friday was the ex. date for the distributions of many Fidelity funds. The pay date for the funds is on Monday, December 9. For investors who chose to reinvest the distributions automatically, the value of their holdings will be adjusted on Monday. For investors who chose not to reinvest, their investment account will be credited by the distribution amounts.

The December dividends and the capital gains distributions for Fidelity funds are available on the following website:

https://www.fidelity.com/mutual-funds/prices-documents/distributions

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

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Another Spike in Bond Yields Pushes Treasury Bond Fund Even Lower

Fidelity Spartan Long-term Treasury Bond Fund (FLBIX, last change: -3.21%)

Fidelity Spartan Long-term Treasury Bond Fund (FLBIX, last change: -3.21%)

 

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

Chart Pattern Turns Bearish for the Fidelity High Income Fund (SPHIX)

The Fidelity High Income Fund (SPHIX, last change: -0.64%) has moved below its 100 day moving average, which signals an interruption of the steady gains that were achieved by this fund in the last 12 months.

The Fidelity High Income Fund (SPHIX, last change: -0.64%) has moved below its 100 day moving average, which signals an interruption of the steady gains that were achieved by this fund in the last 12 months. 

 

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