Best Performing Fidelity Mutual Funds and Top Rated ETFs
AlphaProfit to Provide New Recommendations
AlphaProfit will reconstitute the Focus and Core model portfolios with best performing Fidelity mutual funds and top rated ETFs on June 29.
As the first half of 2012 draws to a close, macroeconomic concerns are taking a firm grip on stock prices around the world.
Stocks have lost a good part of their first quarter gains.
After racing to a 13% gain in the first quarter, Fidelity Spartan 500 Index Fund (FUSEX) that tracks the S&P 500 index ($SPX) is down 6% in the second. This loss has trimmed the fund's year-to-date advance to 6%.
Overseas markets have seen larger losses. iShares MSCI ACWI Index ETF (ACWI) that tracks the MSCI All Country World Index is down 9% in the second quarter after gaining 12% in the first.
Discussing the recent performance of the U. S. stock market, Dr. Sam Subramanian, Editor of AlphaProfit's Premium Service Investment Newsletter said, 'Investor's appetite for risk has dramatically declined in the second quarter as macroeconomic fears have escalated.'
'Defensive investments that were out-of-favor in the first quarter have come back into favor. Meanwhile, economically sensitive sectors have become unpopular', elaborated Dr. Subramanian.
Utilities Select Sector SPDR ETF (XLU) has risen over 4% in the second quarter after declining 2% in the first.
In contrast, Financial Select Sector SPDR ETF (XLF) and Vanguard Information Technology ETF (VGT) have lost nearly 10% in the second quarter after rising over 20% in the first.
AlphaProfit's sector-based Core and Focus model portfolios have benefited from the selection of best performing Fidelity mutual funds and top rated ETFs in 2012.
The Fidelity and ETF Core model portfolios are up 9.8% and 11.3%, respectively while the Fidelity and ETF Focus model portfolios are up 9.3% and 9.6%, respectively.
The model portfolios have advanced from contributions made by SPDR S&P Biotech ETF (XBI), Fidelity Select Biotechnology (FBIOX), SPDR S&P Homebuilders (XHB), and Fidelity Select Construction & Housing (FSHOX) that are up 30%, 26%, 17%, and 12%, respectively.
Outlook for Fidelity Mutual Funds and Top Rated ETFs
Global markets are currently contending with three concerns: European debt, the U. S. economy, and corporate profit growth.
In Europe, the troubled nations have gained access to capital in exchange for promises to be more fiscally responsible. Distressed nations are however already in economic malaise. The agreed-to austerity measures have not been popular and there has been little progress to resolve the sovereign debt crisis.
Economic indicators particularly from the employment arena suggest that the U. S. economy is slowing. The Federal Reserve has acknowledged this as well by lowering its 2012-2013 growth forecast range by about 0.5%.
The unfavorable macroeconomic backdrop is also starting to impact corporate profits. Profits across sectors from technology to consumer staples and energy are coming under pressure from strengthening U. S. dollar, slowing global economic growth, and falling oil prices.
While Dr. Subramanian urges investors to be cautious in the near-term and have adequate cash reserves, he is relatively sanguine in his multi-month outlook for U. S. stocks.
Investor expectations are currently very low. U. S. stocks are trading below 13-times last 12-month EPS compared to their long-term average of 16.4.
'Measures to spur growth in the U. S. and resolve the sovereign debt crisis in Europe can improve investor sentiment and spark a turnaround in stock prices', says Dr. Subramanian.
U. S. Presidential Elections are fast approaching. After extending its current stimulus measure 'Operation Twist' through the end of the year, the Federal Reserve has hinted that it is ready to pursue additional stimulus measures if the economy loses momentum.
The vote against austerity in France raises the odds of Europeans shifting their approach from austerity to stimulus to fight the debt crisis. Quantitative easing programs similar to the ones used by the Federal Reserve are a distinct possibility. In this milieu, Germany's opposition for such measures can diminish for the sake of greater good.
Best Performing Fidelity Mutual Funds and Top Rated ETFs
The AlphaProfit Core and Focus model portfolios will be repositioned with new recommendations of best performing Fidelity mutual funds and top rated ETFs on Friday, June 29. Learn more about AlphaProfit's Fidelity fund recommendations and ETF model portfolios.
Compounding at an annual rate of 20.1%, a dollar invested in this selection process in 1994 is now worth $29.71 while a comparable investment in the S&P 500 is worth just $4.14. This market-leading performance has enabled AlphaProfit Premium Service investment newsletter to bag Hulbert Financial Digest's #1 rank 12 times.
Valuation, momentum, and news quality are the three elements of the investment selection and risk management process AlphaProfit uses to consistently pick winners among Fidelity mutual funds and sector ETFs over both the long-term and short-term.
Looking ahead to the new Fidelity mutual fund and ETF recommendations Dr. Subramanian said, 'Given high levels of uncertainty, our top priority in the near-term is to help subscribers preserve capital by blending recommendations of best performing Fidelity mutual funds and top rated ETFs with appropriate market timing advice.'
'We will look to increase allocation to aggressive best performing Fidelity mutual funds and top rated ETFs at the right time to take full advantage of better buying opportunities likely to materialize down the road', concluded Dr. Subramanian.
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By Hulbert #1 rank winner Dr. Sam Subramanian
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AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector
Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios
with Fidelity funds and exchange-traded funds.
It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won
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