Wall Street Sentiment As Few Fidelity Funds Beat Cash

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.

For access to the full report, indicators, charts, screens, and Backtest Engine, log in or sign up for a free 30-day trial today.

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

At SentimenTrader.com, our service is not focused on market timing per se, but rather risk management. That may be a distinction without a difference, but it's how we approach the markets. We study signs that suggest it is time to raise or lower market exposure as a function of risk relative to probable reward. It is all about risk-adjusted expectations given existing evidence. Learn more about our service , research, models and indicators.

Follow us on Twitter for up to the minute analysis of market action.

Not ready to signup up for a free trial yet?

Signup for our Daily Lite email to receive highlights of our daily report, research and studies.

Follow us on Twitter:

Subscribe to our Youtube Channel:

RSS Feed

Subscribe to the Blog RSS feed