Wall Street Sentiment As Few Fidelity Funds Beat Cash

  • Jason Goepfert

    Jason Goepfert

    Published: 2018-04-11 at 13:59:18 CST

This is an abridged version of our Daily Report.

An undervalued market

Stocks are undervalued, at least according to Wall Street strategists. They expect the S&P 500 to end the year more than 10% above where it is, enough to suggest they think the index is undervalued.

When they’ve been so adamant about a higher market since 1999, it has usually accommodated. At the same time, Wall Street analysts have been busy lowering price estimates on the stocks they cover, with a net 150 downgrades during the past week, one of the highest amounts in 7 years.

Cash beats (almost) all

There have been few Fidelity Select sector mutual funds that have beat the return on cash lately. Fewer than 10% of them have had a better return, an abnormally low number, especially in a bull market. According to the Backtest Engine, that has led to a positive 6-month return after 433 of 462 days.

Energy breaks out

The energy sector finally broke out of a long trading range. The width between its Bollinger Bands (a measure of price volatility) has been suppressed but on Tuesday the sector broke well above its upper Band. The S&P 500 Energy sector has done this 24 other times since 1990.

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The post titled Wall Street Sentiment As Few Fidelity Funds Beat Cash was originally published as on SentimenTrader.com on 2018-04-11.

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