Defense Stocks Break Out

The Fidelity Select Defense & Aerospace Fund (FSDAX) made a new all-time high yesterday. FSDAX continues to outperform the S&P 500 index and in our view, it is one of the most bullish investments in the current market environment:

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Sector Rotation: Fidelity Select Defense and Aerospace Fund

The Fidelity Select Defense & Aerospace Fund has been an outstanding investment throughout 2013 with an excellent 41.57% year-to-date return. Top holdings include defense companies, such as United Technologies (UTX), Boeing (BA) and Precision Castparts (PCP).

The chart shows that FSDAX has accelerated its momentum and now moved up to the #4 ranked position on the Top 10 Fidelity Mutual Funds list. The next few trading sessions will show how much impact the Iran nuclear deal has on the defense sector and what to expect from FSDAX, as an investment.

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