|
Best Mutual Funds
"If
you are in the right sector at the right time, you can make
a lot of money very fast..."
- Peter Lynch,
Beating the Market
Turn $10,000 into $53,782 in five years... into $289,255 in ten years...
into $1,555,681 in fifteen years… or into $8,366,826 in twenty years
Our simple, low-risk system has
consistently beaten the S&P 500, the Dow,
and every mutual fund out there. Now it is available for you to profit...
Do you know what these best performing funds of 2003-05 have in common?
|
|
|
1 |
US Global Resources (PSPFX) |
up 266.48% |
2 |
Profunds Internet (INPIX) |
up 239.87% |
3 |
Profunds Wireless (WCPIX) |
up 232.11% |
4 |
CGM Realty (CGMRX) |
up 219.88% |
5 |
Profunds Energy (ENPIX) |
up 186.61% |
6 |
Alpine US Real Estate (EUEYX) |
up 182.30% |
7 |
Vanguard Energy (VGENX) |
up 160.79% |
8 |
Robertson Stephens Natural Resources (RSNRX) |
up 159.69% |
9 |
Profunds Biotech (BIPIX) |
up 152.03% |
10 |
Turner New Enterprise (TBTBX) |
up 144.23% |
11 |
Van Eck Global Hard Assets (GHACX) |
up 141.51% |
12 |
Robertson Stephens Info Age (RSIFX) |
up 138.84% |
13 |
Profunds Real Estate |
up 138.14% |
14 |
Vanguard Precious Metals (VGPMX) |
up 132.65% |
15 |
T. Rowe Price Media & Telecom (PRMTX) |
up 130.91% |
16 |
US Global Word Gold (UNWPX) |
up 127.62% |
They
are all sector mutual funds. Not only are sector funds doing exceptionally well lately, they have also been the most consistent overachievers since their inception in the mid 1980s.
Let us show you how easy it is to enjoy huge profits like these year after year by investing in the right sectors using a selection of the best mutual funds in the market. Here, we will describe a powerfully simple investment strategy that brings in 40%-plus returns...with limited downside risk. The complete trade-by-trade history is also shown later.
This system — Sector Fund Timer™ (or SFT for short) — follows a real-time trading strategy that monitors and evaluates sectors at all times, then determines which sectors to invest in. That means you don't have to worry about making "educated guesses" when you invest in sector funds - the system's automatic buy, sell, and hold recommendations tell you exactly what to do.
It's SIMPLE to follow. The model portfolio positions you in the single best sector based on our special criteria. When that sector begins to lag and another takes the lead, you simply switch into the leader. That's all there is to it.
The Sector Fund Timer technology was developed to get what every investor wants - greater return with less risk. Does it work? Without a doubt! Unlike the majority of mutual funds, our system has consistently beaten the major market indices.
Sector
Fund Timer System Pulls
in 41.07% Average Return
|
From 1989-2005, the Sector Fund Timer chalked up a 15-year 40.21% average annual return. That beats the 8.97% average annual return from the S&P 500 by a huge margin
A $10,000 hypothetical investment in the S&P 500 index would have grown to just $44,317. But that same $10,000 investment using the Sector Fund Timer would have grown to $2,523,533 in 17 years - almost 57 TIMES the S&P 500 gains and with NEVER a losing year!
This uncanny system has a largest winning trade of 95.83%, with the largest loss being ONLY 15.67%. And you don't have to trade excessively. The Sector Fund Timer trades on average, once every 2 months.
Isn't an extra few hundred thousand dollars worth it for you to pick up the phone (or log into your fund brokerage account) every couple of months to switch your positions in sector funds?
No other system can give you such incredible performance while managing risk so effectively. It's SIMPLE, it's EFFECTIVE, and it can make MORE MONEY than any other trading system available to the public.
No
Guesswork - No Speculation
|
The secret to this system is that it removes any guesswork, speculation, or human emotion. There's no relying on "gut feelings" here. No guessing by a human - me, you, or anyone else.
It's all based on a mechanical trading process that can be applied systematically - week after week.
The Sector Fund Timer technology was originally developed by an Engineer with a Masters Degree in Computer Science, who approached investing and wealth creation scientifically. When he set out to develop this trading system, his goal was to develop a system that produced high returns with low risk, plus used an effective strategy that would do the analysis and make fund recommendations automatically.
After years of research, development, and testing, he developed a system that applied computer analysis to the forces of supply and demand on stock prices. When all the numbers are run, the system pinpointed the funds whose sectors are on an upswing and avoids those that are headed down.
And since then, it has worked beautifully, as we will show you today.
Unlike trading stocks and options, you don't have to spend a great deal of time doing the analysis, making proper selections or placing the trades. This system has a mechanical trading process that is applied in a systematic fashion without subjective human judgment.
In essence, what we wanted was a trading system with high returns and low risk that requires very little time to monitor. A system that would allow us to test various rules & weights for systematic analysis and to develop an effective strategy, completely eliminating emotion and bias.
The answer was to apply mathematical methods and computer analysis to the movement of money flow between industry sectors of the market.
We decided on the Fidelity Select funds as our investment instrument. These are 41 top mutual funds geared to specific industry sectors. By analyzing sector rotation in the market, we can buy those funds whose sectors are exhibiting the strongest rotation.
In analyzing these 41 funds, we found that by switching among just three major growth sectors and holding one fund at any time, we could make a whole lot more money with very limited downside risk and hardly any work. These 3 funds represent the three major growth sectors of the U.S. and World economy - Health Care, Technology and Financial Services. Specifically, the funds are:
1.
Fidelity Select Health Care (FSPHX)
2.
Fidelity Select Electronics (FSELX)
3.
Fidelity Select Home Finance (FSVLX)
A fourth fund, the Fidelity Select Money Market Fund (FSLXX), is used for parking your cash when the stock market is in a downtrend, as it does during bear markets.
How
to stay in the Best Fund
|
We know from experience that stock prices of industry sectors move independent of other sectors and often independent of the market itself. It is a simple matter to take advantage of these unique and divergent price movements.
The reason the Sector Fund Timer system keeps bringing in such healthy returns is because it rotates investments from one sector fund to the next. At the start of a bullish trend, the SFT will recommend moving your money from a money market fund into one of the funds representing the sector that's leading the move.
As the move matures, this sector may start to falter, while other sectors start showing strength. The Sector Fund Timer will automatically alert us to this new trend, and we'll switch over into the strongest fund.
When the bull move is over, the SFT trading system generates a sell signal and we move our money into the next sector opportunity which is just starting a new uptrend. It's like riding the waves in the ocean.
That's why, in both historical testing and real-time trading, the Sector Fund Timer has consistently beaten all major market indices like the S&P 500, the Nasdaq, and the Dow Jones Industrial Average.
The
Incredibly Simple — and
Profitable — Approach
to Investing
|
The three areas that represent the major growth sectors of the U.S. and World Economy are Health Care, Technology, and Financial Services. At any given time, one of these sectors will be stronger than other sectors... and our system will be able to tell us, which one.
That's it. You're only invested in just one fund at a time. By switching amongst the three sector funds, and holding just one fund at a time, you can increase your returns and limit your risk with hardly any work.
Sector Fund Timer simplifies investing by several orders of magnitude. Instead of having to sift through over 10,000 individual stocks out there, we only have to choose one fund from a list of three that represent the major growth sectors.
Of course, switching between funds is a lot easier if they're all in one fund family.
Fortunately, Fidelity mutual funds offers 41 Select Sector funds focusing on specific industries. Best of all, you can switch your investment just by using your touch-tone phone or using their internet website.
That is why we have chosen the portfolio of Fidelity Select funds as our investment vehicle. This simplicity is one of the major benefits of trading with the Sector Fund Timer.
To limit our downside, we use weekly stop losses to protect portfolio assets from unforeseen sector corrections. This helps in cutting our losses while letting our profits run.
Of course, you won't need to calculate these stops on your own. Sector Fund Timer will do all the work for you. All you have to do is follow the model portfolio recommendation to buy, sell or hold. It's just that simple!.
What
You Get with Sector Fund Timer
|
Every Monday morning — by e-mail or via our website - you get the latest updates on where to put your money for maximum growth. The Sector Fund Timer identifies the fast-moving sector funds for you, letting you take advantage of upward moves.
Using a combination of technical analysis and risk-reducing strategies, Sector Fund Timer is a weekly newsletter service that allows investors to accurately identify fast-moving sector funds while limiting downside risk.
The advantage of having analysis from the system - once available only to a handful of institutional investors - could produce gains of 40.21% average annual returns as it did over the last 17 years, without ever posting a losing year.
You get the returns typical of growth stocks, with the safety and diversification of mutual funds. For the individual investor, we know of no better way to capture returns like these safely.
And it's SIMPLE to follow. The model portfolio positions you in the single best sector as determined by price momentum and relative strength. Once the leadership changes, you simply switch into the current leading sector. That's all there is to it.
A
fund selection system designed
for maximum profit
|
Imagine rates of return as good or better than the best money managers without having to resort to risky investments like options, commodities, or even individual stocks. I'm talking about "fortune building" returns like the 25,487% total return (or 40.21% annualized) generated by the SFT trading system in the last 10 years.
If you want to make the most money, it is vitally important to achieve the highest possible rate of return on your investments. Even a small increase in return can make a huge difference in portfolio performance over time.
For example, let's say you put away $1,000 per month for twenty years at the average return for stocks of 12% per year. At the end of twenty years you would have $911,211.
If you increased the rate of return to 24% you would wind up with $4,028,407. By doubling the rate of return you've made more than four times the money!
Increase the rate of return to 36% and you wind up with an incredible $18,014,908 nearly twenty times more than at 12%.
The secret to these phenomenal gains is a remarkable system we use to track sector mutual funds. It continuously monitors the chosen set of best mutual funds, looks for signs of strength, and automatically identifies the strongest fund. When this fund starts lagging, we simply switch our money into the strongest fund at that time.
The system gives signals based on strength, not some arbitrary price level or forecast. This is very important because as investors, we need to know the best funds to buy right now, not what was a good fund in the past. We have found through experience and testing that the best results come from this approach.
The idea is very simple: stay in the strongest funds and you'll maximize your returns. That's what the Sector Fund Timer is all about. It's kind of like surfing: look for a good wave, ride it for all it's worth, then jump on the next one.
The system is designed to do the same thing with mutual funds: find the strongest fund, ride it for maximum profit, then move on to the next one.
SECTOR
FUND TIMER TRADING
SYSTEM HISTORY
|
| |
Name |
Symbol |
Buy Date |
Sell Date |
%Change |
Account Value |
| 1 |
Select Home Finance |
FSVLX |
2/6/89 |
4/17/89 |
5.23% |
$10,523.20 |
| 2 |
Select Health Care |
FSPHX |
4/17/89 |
5/30/89 |
5.23% |
$11,074.05 |
| 3 |
Select Electronics |
FSELX |
5/30/89 |
6/19/89 |
-3.79% |
$10,654.58 |
| 4 |
Select Home Finance |
FSVLX |
6/19/89 |
10/16/89 |
6.23% |
$11,318.76 |
| 5 |
Select Electronics |
FSELX |
10/16/89 |
10/30/89 |
-2.78% |
$11,004.35 |
| 6 |
Select Health Care |
FSPHX |
10/30/89 |
1/15/90 |
4.52% |
$11,501.29 |
| 7 |
Select Electronics |
FSELX |
1/15/90 |
6/11/90 |
31.41% |
$15,113.87 |
| 8 |
Select Home Finance |
FSVLX |
6/11/90 |
6/18/90 |
-4.32% |
$14,460.53 |
| 9 |
Select Health Care |
FSPHX |
6/18/90 |
8/6/90 |
-3.72% |
$13,922.51 |
| 10 |
Select Electronics |
FSELX |
8/6/90 |
8/27/90 |
-2.29% |
$13,603.55 |
| 11 |
Select Health Care |
FSPHX |
8/27/90 |
12/10/90 |
15.16% |
$15,666.19 |
| 12 |
Select Home Finance |
FSVLX |
12/10/90 |
1/28/91 |
9.34% |
$17,129.48 |
| 13 |
Select Electronics |
FSELX |
1/28/91 |
3/4/91 |
15.66% |
$19,811.95 |
| 14 |
Select Home Finance |
FSVLX |
3/4/91 |
4/8/91 |
4.89% |
$20,781.22 |
| 15 |
Select Health Care |
FSPHX |
4/8/91 |
4/29/91 |
-4.25% |
$19,898.84 |
| 16 |
Select Home Finance |
FSVLX |
4/29/91 |
9/9/91 |
10.97% |
$22,081.29 |
| 17 |
Select Health Care |
FSPHX |
9/9/91 |
1/13/92 |
26.96% |
$28,034.12 |
| 18 |
Select Electronics |
FSELX |
1/13/92 |
3/16/92 |
5.38% |
$29,541.84 |
| 19 |
Select Home Finance |
FSVLX |
3/16/92 |
4/6/92 |
-1.78% |
$29,016.39 |
| 20 |
Select Electronics |
FSELX |
4/6/92 |
4/13/92 |
-3.96% |
$27,867.24 |
| 21 |
Select Home Finance |
FSVLX |
4/13/92 |
6/22/92 |
7.39% |
$29,926.10 |
| 22 |
Select Electronics |
FSELX |
6/22/92 |
7/27/92 |
4.49% |
$31,269.84 |
| 23 |
Select Home Finance |
FSVLX |
7/27/92 |
8/24/92 |
-4.21% |
$29,953.40 |
| 24 |
Select Electronics |
FSELX |
8/24/92 |
11/16/92 |
19.93% |
$35,922.77 |
| 25 |
Select Home Finance |
FSVLX |
11/16/92 |
4/26/93 |
18.29% |
$42,492.15 |
| 26 |
Select Health Care |
FSPHX |
4/26/93 |
6/21/93 |
5.46% |
$44,814.16 |
| 27 |
Select Electronics |
FSELX |
6/21/93 |
9/7/93 |
13.14% |
$50,701.73 |
| 28 |
Select Health Care |
FSPHX |
9/7/93 |
12/13/93 |
8.09% |
$54,805.69 |
| 29 |
Select Home Finance |
FSVLX |
12/13/93 |
2/22/94 |
4.99% |
$57,538.01 |
| 30 |
Select Electronics |
FSELX |
2/22/94 |
4/5/94 |
1.87% |
$58,616.84 |
| 31 |
Select Home Finance |
FSVLX |
4/5/94 |
8/22/94 |
17.82% |
$69,059.56 |
| 32 |
Select Health Care |
FSPHX |
8/22/94 |
1/16/95 |
6.40% |
$73,482.77 |
| 33 |
Select Home Finance |
FSVLX |
1/16/95 |
3/20/95 |
8.05% |
$79,398.60 |
| 34 |
Select Electronics |
FSELX |
3/20/95 |
9/18/95 |
66.82% |
$132,453.81 |
| 35 |
Select Home Finance |
FSVLX |
9/18/95 |
11/6/95 |
1.03% |
$133,821.08 |
| 36 |
Select Electronics |
FSELX |
11/6/95 |
11/20/95 |
-9.66% |
$120,895.17 |
| 37 |
Select Health Care |
FSPHX |
11/20/95 |
2/20/96 |
9.38% |
$132,230.78 |
| 38 |
Select Home Finance |
FSVLX |
2/20/96 |
4/22/96 |
2.36% |
$135,353.25 |
| 39 |
Select Electronics |
FSELX |
4/22/96 |
5/28/96 |
6.72% |
$144,444.14 |
| 40 |
Select Health Care |
FSPHX |
5/28/96 |
7/15/96 |
-4.32% |
$138,210.41 |
| 41 |
Select Home Finance |
FSVLX |
7/15/96 |
9/23/96 |
12.82% |
$155,930.77 |
| 42 |
Select Electronics |
FSELX |
9/23/96 |
10/28/96 |
1.33% |
$157,997.73 |
| 43 |
Select Home Finance |
FSVLX |
10/28/96 |
12/23/96 |
8.25% |
$171,032.19 |
| 44 |
Select Electronics |
FSELX |
12/23/96 |
2/10/97 |
9.39% |
$187,097.56 |
| 45 |
Select Home Finance |
FSVLX |
2/10/97 |
4/1/97 |
-5.67% |
$176,488.06 |
| 46 |
Select Health Care |
FSPHX |
4/1/97 |
5/27/97 |
11.88% |
$197,449.34 |
| 47 |
Select Home Finance |
FSVLX |
5/27/97 |
7/21/97 |
13.05% |
$223,225.91 |
| 48 |
Select Electronics |
FSELX |
7/21/97 |
9/22/97 |
16.79% |
$260,705.53 |
| 49 |
Select Home Finance |
FSVLX |
9/22/97 |
11/17/97 |
.06% |
$260,853.22 |
| 50 |
Select Health Care |
FSPHX |
11/17/97 |
2/17/98 |
11.42% |
$290,631.28 |
| 51 |
Select Electronics |
FSELX |
2/17/98 |
3/23/98 |
-1.20% |
$287,155.84 |
| 52 |
Select Home Finance |
FSVLX |
3/23/98 |
5/11/98 |
.85% |
$289,592.13 |
| 53 |
Select Electronics |
FSELX |
5/11/98 |
5/18/98 |
-4.55% |
$276,402.44 |
| 54 |
Select Health Care |
FSPHX |
5/18/98 |
6/1/98 |
-2.35% |
$269,895.25 |
| 55 |
Select Home Finance |
FSVLX |
6/1/98 |
6/22/98 |
-3.72% |
$259,851.70 |
| 56 |
Select Health Care |
FSPHX |
6/22/98 |
8/10/98 |
.31% |
$260,656.13 |
| 57 |
Select Electronics |
FSELX |
8/10/98 |
8/17/98 |
.12% |
$260,971.89 |
| 58 |
Select Health Care |
FSPHX |
8/17/98 |
9/7/98 |
-4.70% |
$248,718.27 |
| 59 |
Select Electronics |
FSELX |
9/7/98 |
10/5/98 |
-1.86% |
$244,090.55 |
| 60 |
Select Health Care |
FSPHX |
10/5/98 |
10/12/98 |
-.94% |
$241,795.64 |
| 61 |
Select Electronics |
FSELX |
10/12/98 |
2/8/99 |
84.17% |
$445,312.53 |
| 62 |
Select Health Care |
FSPHX |
2/8/99 |
4/19/99 |
-5.93% |
$418,910.25 |
| 63 |
Select Electronics |
FSELX |
4/19/99 |
7/26/99 |
23.48% |
$517,288.13 |
| 64 |
Select Health Care |
FSPHX |
7/26/99 |
8/9/99 |
-4.65% |
$493,254.84 |
| 65 |
Select Electronics |
FSELX |
8/9/99 |
10/11/99 |
10.93% |
$547,175.81 |
| 66 |
Select Home Finance |
FSVLX |
10/11/99 |
10/18/99 |
-4.78% |
$521,023.50 |
| 67 |
Select Electronics |
FSELX |
10/18/99 |
4/10/00 |
95.83% |
$1,020,303.94 |
| 68 |
Select Home Finance |
FSVLX |
4/10/00 |
4/17/00 |
-2.40% |
$995,770.44 |
| 69 |
Select Health Care |
FSPHX |
4/17/00 |
6/12/00 |
9.60% |
$1,091,321.00 |
| 70 |
Select Electronics |
FSELX |
6/12/00 |
7/24/00 |
-.37% |
$1,087,248.25 |
| 71 |
Select Home Finance |
FSVLX |
7/24/00 |
1/8/01 |
36.04% |
$1,479,124.75 |
| 72 |
Select Electronics |
FSELX |
1/8/01 |
2/5/01 |
7.07% |
$1,583,701.88 |
| 73 |
Select Home Finance |
FSVLX |
2/5/01 |
2/26/01 |
-1.62% |
$1,558,100.00 |
| 74 |
Select Health Care |
FSPHX |
2/26/01 |
3/12/01 |
-7.55% |
$1,440,489.88 |
| 75 |
Select Home Finance |
FSVLX |
3/12/01 |
5/7/01 |
4.97% |
$1,512,115.25 |
| 76 |
Select Electronics |
FSELX |
5/7/01 |
5/14/01 |
-5.89% |
$1,422,996.13 |
| 77 |
Select Health Care |
FSPHX |
5/14/01 |
7/2/01 |
.48% |
$1,429,821.63 |
| 78 |
Select Electronics |
FSELX |
7/2/01 |
7/9/01 |
-9.15% |
$1,298,986.63 |
| 79 |
Select Home Finance |
FSVLX |
7/9/01 |
8/13/01 |
4.51% |
$1,357,598.88 |
| 80 |
Select Health Care |
FSPHX |
8/13/01 |
9/21/01 |
-9.36% |
$1,230,496.88 |
| 81 |
Select Electronics |
FSELX |
9/21/01 |
11/26/01 |
47.14% |
$1,810,614.25 |
| 82 |
Select Home Finance |
FSVLX |
11/26/01 |
12/3/01 |
-3.74% |
$1,742,829.50 |
| 83 |
Select Electronics |
FSELX |
12/3/01 |
12/24/01 |
.65% |
$1,754,101.75 |
| 84 |
Select Home Finance |
FSVLX |
12/24/01 |
7/15/02 |
3.87% |
$1,822,016.00 |
| 85 |
Select Electronics |
FSELX |
7/15/02 |
7/22/02 |
-9.26% |
$1,653,252.00 |
| 86 |
Select Health Care |
FSPHX |
7/22/02 |
11/25/02 |
21.79% |
$2,013,566.25 |
| 87 |
Select Electronics |
FSELX |
11/25/02 |
12/9/02 |
-15.67% |
$1,697,954.00 |
| 88 |
Select Home Finance |
FSVLX |
12/9/02 |
2/10/03 |
-2.31% |
$1,658,684.25 |
| 89 |
Select Health Care |
FSPHX |
2/10/03 |
4/22/03 |
4.40% |
$1,731,646.75 |
| 90 |
Select Home Finance |
FSVLX |
4/22/03 |
6/23/03 |
3.73% |
$1,796,153.25 |
| 91 |
Select Health Care |
FSPHX |
6/23/03 |
7/28/03 |
.12% |
$1,798,360.88 |
| 92 |
Select Electronics |
FSELX |
7/28/03 |
8/11/03 |
-4.97% |
$1,708,892.63 |
| 93 |
Select Home Finance |
FSVLX |
8/11/03 |
9/15/03 |
2.50% |
$1,751,622.50 |
| 94 |
Select Electronics |
FSELX |
9/15/03 |
9/29/03 |
-1.79% |
$1,720,327.13 |
| 95 |
Select Home Finance |
FSVLX |
9/29/03 |
1/12/04 |
14.88% |
$1,976,368.25 |
| 96 |
Select Electronics |
FSELX |
1/12/04 |
1/26/04 |
-1.02% |
$1,956,227.63 |
| 97 |
Select Home Finance |
FSVLX |
1/26/04 |
4/5/04 |
-.52% |
$1,946,087.38 |
| 98 |
Select Electronics |
FSELX |
4/5/04 |
4/19/04 |
-5.96% |
$1,830,032.25 |
| 99 |
Select Health Care |
FSPHX |
4/19/04 |
5/17/04 |
-2.65% |
$1,781,453.88 |
| 100 |
Select Home Finance |
FSVLX |
5/17/04 |
9/27/04 |
8.77% |
$1,937,757.38 |
| 101 |
Select Electronics |
FSELX |
9/27/04 |
12/6/04 |
17.76% |
$2,281,941.00 |
| 102 |
Select Health Care |
FSPHX |
12/6/04 |
5/23/05 |
10.59% |
$2,523,533.50 |
SFT System Annualized Return (2/6/1989 - 5/23/2005)
= 40.21%
(would have turned a one-time $10,000 investment into $2.52 million)
Largest Gain = 95.83% Largest
Loss = -15.67%
S&P 500 index annualized
return (2/6/1989 – 5/23/2004)
= 8.97%
(would have turned a one-time $10,000 investment into $44,317)
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A $10,000 initial investment in the S&P 500 index would have grown to just $44,317. But if that same $10,000 was invested using the Sector Fund Timer system, it would have grown to $2,523,533 in just 17 years - almost 57 TIMES the S&P 500 gains and with NEVER a losing year!
Why
Sector Rotation Works
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Economists, investment professionals and experienced individual investors have known for a long time that the market, like the economy, is divided into numerous industry sectors.
We also know from experience that the economic activity and stock prices of these industry sectors move independent of other sectors and often independent of the market itself. It is a simple matter to take advantage of these unique and divergent price movements.
Market prices move based on supply and demand. Supply and demand for specific stocks within the market reflects the discounted expected future income stream of the companies issuing the stock. What makes this a horse race is that every analyst has his or her own estimate for that income stream.
When an analyst makes an estimate for a particular stock, the first thing he or she looks at is the industry sector that particular stock belongs to. Industry factors generally affect all the stocks in that industry.
If stocks within an industry move together, then a mutual fund specializing in that industry will also move with the industry. That is why we chose the portfolio of Fidelity Select funds as our investment vehicle. Each Fidelity Select fund focuses on a specific industry or segment of an industry.
The magnitude of our investing problem is greatly reduced because instead of selecting individual stocks from an available list of over 15000, we have to select only 1 fund at a time from a list of just 3 funds.
Since stocks within each sector tend to move up and down in unison, our ability to select the appropriate sector usually translates to better returns than the market as a whole.
Fidelity Select Sector funds allow investors to target very specific sectors with the ease of trading within only one fund family. This simplicity is one of the major benefits of trading with the Sector Fund Timer.
This approach allows one to move large amounts of money without the potential of sharks negating one's move. Trying to find the best stock within a sector is difficult, and if the decision is wrong, the results could be disastrous for your investment account.
Also, professional mutual fund managers do all the research on individual stocks in the portfolio and select a broad base of high quality stocks that represent that particular sector. By switching sectors from time to time, you can have your investment in the most popular industry group of the market at all times.
The switching system is designed to do better than the buy and hold strategy by moving out of poor performing sectors into better ones. Fidelity also has a money market fund to switch to if you want to be in the safety of cash.
Through mathematical models and computer analysis, we can evaluate the forces of supply and demand on stock prices. Sector Fund Timer is comprised of an absolute set of rules so that the computer can systematically evaluate -- without human intervention -- when to exit a fund and exactly which new fund to enter.
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