Monthly I get an advertisement for “The InvestorsGuide To Fidelity Funds” from Mathew D. Sauer asking me to subscribe to his guide. I don’t. His web site is mutualfundinvestorguide.com and the advertisement contains an offer to view last month’s guide. The August guide in the Fidelity Select Sector Fund Portfolio contains the Fidelity Select funds Pharmaceuticals, Technology, Financial Services, Healthcare, and Industrial Equipment.
On Consuelo Mack’s weekly Wealthtrack show for 12 September several long term indicators were reviewed. All seemed to point to the very high current stock prices. Included in those indicators was the CAPE Ratio – Cyclically Adjusted Price-Earnings Ratio created by Robert Shiller and John Campbell. Three times since 1881 the CAPE Ratio has been higher – around 1929, 1999, and 2007 and Professor Shiller points out that “Major market drips followed those peaks.” As part of her show, Mack always asks the guests for one long term investment and this week the investments were The Buckle Inc, and Schlumberger Limited.
IBD TBP’s Current Outlook is “Confirmed Uptrend” – time to invest. Both the S&P500 and NASDAQ have had three distribution day. The number of distribution days are an indication of major investor selling. A couple more distribution days within the next 3-4 weeks and the Current Outlook will change.
Out of the 130 Fidelity funds I follow, only SBanking, #61, and SDefense&Aerospace, #93, had an incerasing deviation from their moving average over the last two weeks which I require before I invest.
My current investments:
SBiotechnology has a price of 216.94 a sell price 207.96, a rank of 01, and is a Hold.
SElectronics has a price of 79.96, a sell price 76.99, a rank of 03, and is a Hold.
SHealthCare has a price of 218.94, a sell price 207.47, a rank of 02, and is a Hold.
SUtilities has a price of 74.65, a sell price 70.92, a rank of 58, and is a Hold until something better is a buy or it drops below its sell line.
My portfolio changes this weekend:
IRA #1 – None
IRA #2 – None
My portfolio market exposure after this weekend’s changes:
IRA #1 – 100% invested
IRA #2 – 80% invested