Stock Market is at All Time High Again; New Investment Opportunities Emerge

The chart of the Fidelity Spartan U.S. Equity Index Fund (FUSEX) shows that U.S. equities broke out from a volatile trading range that started in early December of last year. At the same time, the yield of Treasury bonds reversed course, which caused the Spartan Long-Term Treasury Bond Fund (FLBIX) to correct:

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Mutual funds investing in the leading sectors have continued to advance this year, but may be ripe for a pullback now to their respective moving averages (blue lines on the charts):

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As the equity market has turned more bullish again, sector rotation has intensified, as well. This is good news for investors, since new investment opportunities are emerging. One example is the Fidelity Select Materials Fund (FSDPX):

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Read more about investment strategies involving these funds at FidelitySignal.com

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Industrial materials drop amid fears of global recession

Yesterday, we warned about the possibility of a pull back for the global stock markets. After an early morning advance, stock markets dropped today and closed in the red. One of the weakest sectors was the metals and industrial materials sector. Not surprising, that the Fidelity Select Materials fund (FSDPX) closed down -4.45%.

Fidelity Select Materials fund (FSDPX, change: -4.45%)

Fidelity Select Materials fund (FSDPX, change: -4.45%)

Mutual fund screens are provided by FidelitySignal.com