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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Stomach-churning market volatility continues today

The Federal Reserve announced “Operation Twist” today, a plan to lower interest rates by buying long-term treasury bonds. The stock market reacted to the news in the afternoon with across the board selling. The clear winner of the day was the Fidelity Spartan Long-Term Treasury Bond fund.

Fidelity Spartan Long-term Treasury Bond (FLBIX, change: 2.56%)

Fidelity Spartan Long-term Treasury Bond fund (FLBIX, change: 2.56%)

No stock market sector was immune to the news with several sectors loosing more than 5% in a single day! The funds with the largest losses were the energy services, the automotive and the real estate sectors funds. The market conditions continue to be extremely dangerous for equity investors.

Fidelity Select Energy Service (FSESX, change: -5.57%)

Fidelity Select Energy Services fund (FSESX, change: -5.57%)

Fidelity Select Automotive (FSAVX, change: -5.22%)

Fidelity Select Automotive fund (FSAVX, change: -5.22%)

Fidelity Real Estate Investment fund (FRESX, change: -5.17%)

Fidelity Real Estate Investment fund (FRESX, change: -5.17%)

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