The Fidelity Sector Funds are clustering, with all of the transport related funds rising into the top 3. This could be bad for the system, since it must hold funds for 30 days before selling.
Currently, 2/3rds of the funds the system is holding are transport related: FSAIX (Air Transportation) and FSFRX (Transportation). The 3rd fund it is holding is FSLBX (Brokerage and Investment Management).
The top 5 Fidelity Select Funds, as of tonight:
- FSAIX (Air Transportation)
- FSFRX (Transportation)
- FSAVX (Automotive)
- FSLBX (Brokerage and Investment Management)
- FSLEX (Environment and Alternative Energy)
And the bonus sector fund, especially for Le Fly since he likes the space…in 7th place behind Industrials, is FSHOX (Construction and Housing).
I’m expecting to see some sector rotation, and soon…but these trends can persist longer than we expect.