Fidelity Select Fundranker

Fundranker Blog—Fundranker Category—Page 3

Rally Falters

The spring rally faltered during the week that ended June 19, the last week of spring, and started summer with a precipitous drop on June 22. Is the rally taking a temporary breather, or are we seeing a more determined correction to the three-month runup we have enjoyed? The Conference Board’s Index of Leading Economic Indicators, which rose in both April and May, shows that the recession is losing steam. Economists predict a gradual recovery beginning later in 2009, so it’s more likely we’re seeing a temporary and healthy hesitation in a continuing market upturn.

The Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund), the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and Fundranker’s Top Eight Model Portfolio fell 1.7%, 2.6%, and 4.5%, respectively, for the week that ended June 19. As of June 22, the Nasdaq Composite, the S&P 500, and Fundranker have gained 39.4%, 33.0%, and 20.6%, respectively, from their March 9 lows and are 7.3% higher, 3.2% lower, and 7.9% lower, respectively, than their January 6 highs.

Posted 6/23/09 10:42am ET in Economy, Fundranker, Market | Permalink | Comments (0)

Rally Still Going

The spring rally continues to advance and now has lasted 14 weeks. The Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund), the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and Fundranker’s Top Eight Model Portfolio all hit new rally highs on Thursday, June 11, and closed Friday, June 12, with gains of 46.7%, 40.8%, and 32.9%, respectively, over their March 9 lows. As of June 12, the Nasdaq Composite, the S&P 500, and Fundranker are 12.9%, 2.5%, and 1.5% higher, respectively, than their January 6 highs.

Posted 6/15/09 10:31am ET in Fundranker, Market | Permalink | Comments (0)

Rally Update

The spring rally powered the market to new highs again this week, although the S&P 500 and the Nasdaq Composite Indexes were off slighty today, June 5, 2009. As of today’s close, Fundranker’s Top Eight Model Portfolio, the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and the Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund) have gained 31.68%, 39.83%, and 45.99%, respectively, since their March 9 lows. As of June 5, the Nasdaq Composite is over 12% higher, the S&P 500 is nearly 2% higher, and Fundranker is nearly 1% higher than their January 6 highs.

Posted 6/5/09 11:26pm ET in Fundranker, Market | Permalink | Comments (0)

Fundranker Upturns

The market upturn since March 9 lows prompts a look at how Fundranker has performed when it has risen for multiple, consecutive months. The table below shows Fundranker’s gains and compares them to returns of the Nasdaq Composite (as measured by Fidelity Nasdaq Composite Index Fund) and the S&P 500 (as measured by the Fidelity Spartan 500 Index Fund) over the same time periods. Since we didn’t start tracking the Nasdaq Composite until October, 2003, its returns are shown starting in 2004:

      FSF Nasdaq S&P 500
     Period Months Return  Return   Return
Apr/Jul 1997     4 30.508    26.737 
Nov/Dec 1997     2 3.682    6.342 
Feb/Apr 1998     3 16.283    13.686 
Sep/Jan 1999     5 57.092    34.423 
Mar/Apr 1999     2 12.267    8.028 
Oct/Feb 2000     5 79.523    6.960 
Apr/May 2001     2 5.270    8.454 
Nov/May 2002     7 24.740    1.461 
Apr/Aug 2003     5 27.002    19.657 
Oct/Feb 2004     5 22.058  13.227  15.740 
May/Jun 2004     2 5.001  6.771  3.309 
Sep/Dec 2004     4 15.808  18.259  10.379 
May/Sep 2005     5 26.361  12.312  7.029 
Nov/Jan 2006     3 22.953  8.880  6.555 
Mar/Apr 2006     2 8.780  1.820  13.073 
Nov/Jan 2007     3 7.126  13.073  11.059 
Mar/Jun 2007     4 9.584  7.986  7.446 
Aug/Oct 2007     3 14.491  12.500  6.942 
Apr/Jun 2008     3 13.553  0.761  (2.739)
Mar/May 2009     3 18.245  28.986  25.876 

If you look at our recent post about Fundranker Downturns, you’ll notice that Fundranker has had significantly more multiple-month upturns than downturns and that the upturns tend to last longer than the downturns, as well. Over all the upturns, Fundranker had an average gain of 21.016%, while the S&P 500 gained only 10.997% on average. Over the 11 upturns during which we tracked the Nasdaq Composite, Fundranker had an average gain of 14.905%, while the Nasdaq Composite gained only 11.325% on average.

Although past results are never an assurance of future performance, it’s still great to know that Fundranker regularly outperforms the Nasdaq Composite and S&P 500 indexes.

Posted 6/4/09 11:45am ET in Fundranker, Market | Permalink | Comments (0)

Fundranker Downturns

Through June, 2008, the Fundranker system bucked the bear market trend that started November, 2007, but in the frantic market downturn during the last half of 2008 and January and February of 2009, it gave back those gains and then some. Fundranker has had multiple-month downturns only 15 times since 1997, when historical tracking of the Top Eight Model Portfolio began. Here are Fundranker’s losses during those downturns along with its returns during the next 3 months, 6 months, and 12 months:

       Next 3  Next 6 Next 12
     Period Months    Loss Months Months Months
Feb/Mar 1997     2 (10.478) 17.993  37.309  49.620 
Jul/Aug 1998     2 (18.332) 24.203  46.650  83.587 
Mar/May 2000     3 (14.633) 20.863  7.140  9.806 
Sep/Nov 2000     3 (11.354) 0.224  2.488  (5.267)
Jan/Mar 2001     3 (9.739) 3.670  (7.140) 12.227 
Aug/Oct 2001     3 (12.200) 13.141  23.520  (1.727)
Jun/Jul 2002     2 (15.637) (6.615) (4.395) 7.475 
Sep/Oct 2002     2 (8.563) 2.377  (4.461) 33.218 
Dec/Mar 2003     4 (7.317) 15.114  23.719  45.021 
Mar/Apr 2004     2 (10.145) 1.538  8.246  16.784 
Jul/Aug 2004     2 (3.678) 14.696  24.092  40.048 
Mar/Apr 2005     2 (6.949) 17.081  20.887  50.482 
Jul/Aug 2006     2 (3.256) 4.659  5.865  16.990 
Jul/Nov 2008     5 (46.834) (9.347) 7.189 
Jan/Feb 2009     2 (16.832) 18.245 

The five-month downturn that began in July, 2008, was the first multiple-month downturn Fundranker had had for two years, and it is by far the worst and longest that Fundranker has suffered. As the worst recession since the Great Depression continued, Fundranker added another two-month downturn in January and February, 2009, and it was nearly as bad as the previous worst multiple-month downturn, July through August, 1998, when Fundranker fell over 18% but gained over 83% during the next 12 months. During the last big bear market, Fundranker had three multiple-month downturns over the ten-month period from June, 2002, through March, 2003, but it gained 45% in the next 12 months.

Although past results are never an assurance of future performance, you still can benefit from knowing that Fundranker almost always has gone on to better performance in the months that follow a multiple-month downturn. Let this knowledge boost your confidence in Fundranker. Stay disciplined, and stick with the Fundranker system.

Posted 6/3/09 9:31pm ET in Fundranker | Permalink | Comments (0)

Fundranker Goes Positive

The first day of June was a good one for the markets and an even better one for Fundranker’s Top Eight Model Portfolio. As of June 1, Fundranker’s Top Eight Model Portfolio is in the black for 2009, with a YTD gain of 2.232%. It also finally surpassed its previous high, reached on January 6, by a fraction of a percent. Take a look at our daily chart for June.

Posted 6/2/09 9:08am ET in Fundranker | Permalink | Comments (0)

Rally Continues

The spring rally had nine straight weeks of new highs, fell during the week ended May 15, 2009, and rose (but not to a new high) for the week ended May 22. The Nasdaq Composite made a new rally high as of May 29, and the S&P 500 nearly did. Fundranker’s Top Eight Model Portfolio, the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and the Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund) have gained 26.17%, 36.63%, and 40.04%, respectively, since their recent March 9 lows. As of May 29, the Nasdaq Composite is nearly 8% higher than its January 6 high, the S&P 500 is within 1% percent of its January 6 high, and Fundranker is within 4% of its January 6 high.

The stock market shot up in the last half hour on Friday, May 29, and, despite continuing financial turbulance, such as General Motors declaring bankruptcy this morning, June 1, stock market futures are indicating that surge may continue today. It seems that this rally has staying power. Maybe it truly is an advance indicator that the economy is beginning to recover. See our Spring Rally post for earlier information on this rally.

Posted 6/1/09 9:30am ET in Economy, Fundranker, Market | Permalink | Comments (0)

Spring Rally

After nine straight weeks of new highs and after weathering the recent deluge of earnings reports, the spring market rally finally took a break during the week ended May 15, 2009. Fundranker’s Top Eight Model Portfolio, the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and the Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund) fell 5.65%, 4.87%, and 3.38%, respectively, for the week but still have gained 18.36%, 31.12%, and 32.48%, respectively, since their recent March 9 lows. As of May 15, the Nasdaq Composite is nearly 2% higher than its January 6 high, the S&P 500 is within 5% percent of its January 6 high, and Fundranker is within 10% of its January 6 high.

Despite this week’s setback, has the market turned the corner? The stock market generally begins a sustained recovery several months before it becomes apparent that the economy is recovering from a recession, although it also can stage bear market rallies and still hit new lows if true recovery doesn’t occur. Are tantalizing hints of economic recovery, such as improvements in bank-to-bank short-term lending, pending home sales, construction spending, existing home inventories, and consumer spending holding out real or false hope? Stay tuned to see if this spring rally regains its footing. See our March/April Rally and New Market Rally posts for earlier information on this rally.

Posted 5/17/09 11:59am ET in Economy, Fundranker, Market | Permalink | Comments (0)

March/April Rally

The current market rally, March 10, 2009, through May 8, 2009, now has outlasted the previous bear market rally, November 21, 2008, through January 6, 2009. The previous rally lasted 30 sessions, while the current rally has lasted 43 sessions. Fundranker’s Top Eight Model Portfolio, the S&P 500 (as measured by Fidelity’s Spartan 500 Index Fund), and the Nasdaq Composite (as measured by Fidelity’s Nasdaq Composite Index Fund) all reached new highs for this rally during the week that ended May 8 and have gained 25.44%, 37.83%, and 37.12%, respectively, since their recent March 9 lows.

For nine weeks in a row, the market has seen new rally highs, with the exception of the S&P 500's loss of just 0.35% for the week ended April 24. As of May 8, the Nasdaq Composite is nearly 6% higher than its January 6 high, the S&P 500 is a fraction of a percent above its January 6 high, and Fundranker is within 5% of its January 6 high.

Is this rally the beginning of a new bull market? It hung on during the weeks ended April 24 and May 1 during a deluge of companies reporting their latest earnings, a true test of its staying power. See our Spring Rally post for newer information on this rally. See our New Market Rally post for earlier information on this rally.

Posted 5/10/09 11:10am ET in Fundranker, Market | Permalink | Comments (0)

New Market Rally

The market fell to new multi-year lows on Monday, March 9, 2009. From recent market highs reached on January 6, 2009, the peak of what turned out to be a bear market rally followed by new lows, through March 9, Fundranker’s Top Eight Model Portfolio fell 23.59%, while Fidelity’s Spartan 500 Index Fund (which tracks the S&P 500 Index) fell 27.19%, and Fidelity’s Nasdaq Composite Index Fund (which tracks the Nasdaq Composite Index) fell 23.03%.

Since the market lows on Monday, March 9, Fundranker, the S&P 500 Index, and the Nasdaq Composite Index have come roaring back with gains of 21.36%, 28.41%, and 33.61%, respectively. Is this just another bear market rally, similar to the one that peaked on January 6, with further new lows ahead, or is it the beginning of a real recovery? The Nasdaq Composite Index finally topped its January 6 high as of April 9, on a number of days since then, and again as of April 24. Notice it took a 30% gain to undo a 23% loss--that's because the gain was figured on the March 9 low, while the loss was figured on the January 6 high. The S&P 500 Index and Fundranker still have quite some way to go to remake their January 6 highs. What's next?

See our Spring Rally and March/April Rally posts for newer information on this rally.

Posted 4/26/09 6:05pm ET in Fundranker, Market | Permalink | Comments (0)

Nasdaq Composite vs S&P 500

Here at Fidelity Select Fundranker, we track the Nasdaq Composite and the S&P 500 Indexes so that we can compare their returns to Fundranker Top Eight Model Portfolio returns. We have tracked the S&P 500 Index since January, 1997, using Fidelity’s Spartan 500 Index Fund (FSMKX), and we have tracked the Nasdaq Composit Index since October, 2003, using Fidelity’s Nasdaq Composite Index Fund (FNCMX), which began operations in September, 2003. We began our Nasdaq Composite Index tracking portfolio on September 30, 2003, with the number of shares of FNCMX that gave it the same dollar balance as our S&P 500 tracking portfolio had on September 30, 2003.

As of April 22, for the first time since January, 2004, our Nasdaq Composite Index tracking portfolio’s value surpassed our S&P 500 tracking portfolio’s value. The Nasdaq Composite Index is heavily weighted toward technology stocks, which have been some of the best performers during the recent rally. This strength in technology stocks has propelled several Select technology funds into our Top Eight Model Portfolio, and at this point in April, it looks like another one or two Select technology funds may join the Top Eight Model Portfolio for May. Perhaps this strength in technology will provide the leadership needed to begin our recovery from recession as well as returning the Top Eight Model Portfolio to its customary role of outperforming the indexes.

Posted 4/23/09 1:04pm ET in Fundranker, Market | Permalink | Comments (0)

April 17 Dividends

Fidelity Investments paid dividends on April 17, 2009, the ex-dividend date, for three of the funds in Fundranker’s Top Eight Model Portfolio: Select Electronics, Select Pharmaceuticals, and Select Telecommunications. If you hold any of these funds in taxable accounts, here’s the scoop on how to determine whether your shares in these three funds meet the 61-day holding period test for qualified dividends. Of course, if you purchased or exchange any or all of your shares in these three funds on days other than Fundranker exchange dates, you will have to calculate your 61-day holding periods using those dates. See Select Fund Dividends for more information.

Fundranker’s Top Eight Model Portfolio purchased Select Electronics on April 3, so the underlying shares will not meet the 61-day holding period test until June 3, 2009. If Fidelity Investments reports it on your 2009 Form 1099-DIV as a qualified dividend and Fundranker holds it through June 3, you should report it as a qualified dividend on your 2009 Form 1040. If Fundranker exchanges the fund before June 3, you should not report it as a qualified dividend on your 2009 Form 1040.

Fundranker’s Top Eight Model Portfolio purchased Select Pharmaceuticals on October 2, 2008, so the underlying shares already easily meet the 61-day holding period test for qualified dividends. If Fidelity Investments reports Pharmaceutical’s April 17 dividend on your 2009 Form 1099-DIV as a qualified dividend, you should report it as a qualified dividend on your 2009 Form 1040.

Fundranker’s Top Eight Model Portfolio purchased Select Telecommunications on March 4, so the underlying shares will meet the 61-day holding period test for qualified dividends on May 4, Fundranker’s next exchange date. Even if Fundranker exchanges the fund that day, the underlying shares still will meet the 61-day holding period test for qualified dividends. If Fidelity Investments reports Telecommunications’ April 17 dividend as a qualified dividend, you should report it as a qualified dividend on your 2009 Form 1040.

Posted 4/17/09 9:03pm ET in Fidelity Investments, Fundranker, Tax Tips | Permalink | Comments (0)

Select Fund Dividends

Many of Fidelity Investments’ Select funds will be paying dividends in April. On what is known as the ex-dividend date, the closing NAV of the dividend-paying fund will be adjusted downward by the amount of the dividend. The fund may gain or lose value on that trading day as well, of course, which also will affect that day’s NAV. Essentially, the fund distributes a set amount per share and reduces the closing NAV of each share by that same amount. You end up with the same value, partly as shares and partly as dividend.

If you automatically reinvest your dividends, the dividend amount is used to purchase new shares at the adusted NAV, so you end up with more shares, but with the same value you would have had without the dividend being paid. Fidelity Investments shows pending dividends for your holdings online at www.fidelity.com after 4pm ET on the ex-dividend date. The following morning, your accounts will reflect the new number of shares at the new NAV.

If your Select fund holdings are in a taxable account, Fidelity Investments will send you a Form 1099-DIV shortly after the end of the year that shows dividends distributed during the year. They will be classified as ordinary dividends, qualified dividends, and capital gain distributions. Qualified dividends are included in ordinary dividends, but they are broken out because they may be eligible to receive preferential tax treatment. That is, qualified dividends that fall within the 15% tax bracket are not taxed at all, and qualified dividends that fall in the 25% or higher tax brackets are taxed at only 15%.

Unfortunately, until you receive your Form 1099-DIV, you can’t tell how much of your ordinary dividends is eligible to be treated as qualified dividends. When you do receive your Form 1099-DIV, the qualified dividends it lists really are only potentially qualified dividends. You still have to determine if you held the fund shares which paid the dividends for the required periods. You must hold the dividend-paying fund shares for at least 61 days of the 121-day period beginning 60 days before the ex-dividend date and ending 60 days after the ex-dividend date. When you count the days, include the day you sold shares in a fund, but not the day you acquired them. For example, if you acquired shares 60 days before the ex-dividend date, you could sell them 61 days later on the trading day immediately following the ex-dividend date, or if you acquired shares one day before the ex-dividend date, you could sell them 61 days later, which would be 60 days after the ex-dividend date.

Fundranker held a number of funds in 2008 that paid dividends in April and December. Assuming you made exchanges on Fundranker exchange dates, you held all of the Top Eight Model Portfolio funds that paid dividends in April and December the required 61 days, except for two funds that paid dividends in December, 2008: Select Environmental and Select Utilities (then known as Select Utilities Growth). Qualified dividends reported on your Form 1099-DIV for all other Top Eight Model Portfolio funds can and should be reported as qualified dividends on your 2008 Form 1040, which means they qualify for the preferential tax treatment discussed above.

Posted 4/9/09 1:25pm ET in Fundranker, Investing, Tax Tips | Permalink | Comments (0)

Capital Losses

Even though Fundranker realized short-term capital gains on exchanges in the first half of 2008, the across-the-board selloff we experienced in the second half of the year way more than did in those gains. Fundranker realized sizeable short-term capital losses on exchanges later in the year.

If you realized these capital losses in taxable accounts, the tax code calls for applying these capital losses first against realized capital gains, and then against regular income. Capital losses applied against regular income are limited to $3,000, with the remainder being carried over to the following year. The $3,000 limit is applied regardless of your filing status. It seems unfair, but taxpayers who are married must share the $3,000, regardless of whether they file jointly or separately.

When you have sizeable capital losses, being able to use only $3,000 per year against regular income may make it seem like it will take many years to use them up, but when your investments begin to realize gains again, you can use those capital losses much faster. When you carryover your remaining capital losses to a following year, they again are applied first to capital gains and then to regular income. So when the economy and stock market finally recover, and Fundranker begins to realize capital gains on exchanges, the capital losses carried over from 2008 can be applied against them with no limit. If your capital losses carried over from 2008 exceed capital gains for 2009, then they again are limited to $3,000 that can be applied to regular income, with remaining capital losses carried over still again.

Posted 3/25/09 10:29am ET in Fundranker, Tax Tips | Permalink | Comments (0)

Twelve-Year Lows

With the market close on February 23, the Dow Jones Industrial Average and the S&P 500 hit lows they haven’t seen since early 1997. Both indexes are about 50% lower than their October, 2007, highs. Fundranker bucked the trend when this bear market first started in November, 2007, and made new highs in May and June, 2008. It has fallen dramatically over the last eight months, but it has not been set back nearly as far as the DJIA and S&P 500. With the February 23 close, Fundranker hit lows it last saw in late 2004.

The markets are weighing in extremely negatively on the latest developments for fixing our financial system and stimulating our economy. Business, investor, and consumer confidence continue to fall to new lows. The picture couldn’t look much bleaker, and consensus on this by all the players couldn’t be much stronger. Contrarians believe that when everyone thinks alike, everyone is likely to be wrong. Let’s hope the contrarians are right. Also, remember that the stock market is an advance indicator for shifts in the economy. Perhaps this new low will be the turning point for the next bull market to begin.

Posted 2/24/09 11:21am ET in Economy, Fundranker, Market | Permalink | Comments (0)

Market Perspective

Let’s review what happened in the market from its high in October, 2007, through the end of 2008 and try to put it in perspective. This isn’t just a run of the mill bear market and recession. We are in the midst of the worst downturn since the Great Depression. In general, nearly $7 trillion of shareholders’ wealth disappeared, setting them back nearly five and a half years. For Fundranker investors, however, this downturn set us back three and a half years, which is bad, but not nearly as bad as the general market.

Fidelity Investments’ Select funds, taken as a group, reflect the market as a whole and were hit hard and across the board in 2008. All 41 funds had losses for the year, ranging from 11.35% to 63.16% and averaging 40.98%, so it’s not surprising that the S&P 500 tracking portfolio, the Top Eight Model Portfolio, and the Nasdaq Composite tracking portfolio lost 40.104%, 41.132%, and 44.306%, respectively, from November, 2007, through December, 2008. For comparison, in the previous downturn, September, 2000, through March, 2003, a much longer period, the Top Eight Model Portfolio lost 24.465% and the S&P 500 tracking portfolio lost 42.129%. Fundranker was able to withstand that previous downturn much better than the market. We all thought it was bad when the Internet bubble burst, but this current crisis has done nearly as much damage to the S&P 500 in much less time and may have farther to go.

The Fundranker system works by positioning an investor in the best performing Select funds. Most times, there are at least a few Select funds that are performing well, and the Fundranker system is able to pick them out, hence its long-term, market beating results. In the first half of 2008, when oil peaked above $147/barrel, energy and natural resource funds performed amazingly well and allowed Fundranker to buck the general downtrend. In the second half of the year, however, the downturn spread to all sectors of the market, none of the Select funds were performing well, and the Fundranker system was reduced to selecting the least worst performing Select funds.

Finally, in December, over three-fourths of the Select funds came out of their funk and turned in some nice returns, which will give the Fundranker system some better grist for the mill, so to speak, but it remains to be seen if this is the beginning of a sustained market recovery. The incoming presidential administration seems to be taking the situation very seriously and has proposed a massive stimulus program, so perhaps 2009 will be brighter.

Posted 1/1/09 10:38pm ET in Fundranker, Market | Permalink | Comments (0)

Is it time to reinvest?

The Fundranker system does not try to predict what may happen in the short term; using past performance, it attempts to position you advantageously for whatever may happen. Using the Fundranker system, you don’t have to make emotional decisions each month on whether to stay in the market or not, or get back in or not. More often than not, emotional investment decisions lead to worse results than sticking with a sound system like Fundranker.

Be that as it may, did you move some or all of your investments to cash recently because of the recent downturn, the worst since the 1930’s Depression? If you did, you weren’t alone, by any means. The question now is when should you reinvest your cash in Top Eight Model Portfolio funds?

December is looking good for the market and even better for Fundranker so far, and we all hope that recovery will continue in 2009, but should you reinvest in January? Unfortunately, if you moved to cash, that is a decision only you can make. Perhaps you should think of your reinvestment decision the same as if you were investing in Top Eight Model Portfolio funds for the first time. No matter which month you decide to reinvest, just as when you first invested using the Fundranker system, Fundranker will begin to position you advantageously for whatever happens.

One thing we can and do say here at Fidelity Select Fundranker is that despite the recent downturn, our Top Eight Model Portfolio still has better long term performance than the S&P 500 and the Nasdaq Composite indices, and we have confidence in future long term results for the Fundranker system.

Posted 12/21/08 12:28pm ET in Fundranker | Permalink | Comments (0)

Current Data

Fidelity Select Fundranker takes great pride in presenting the latest data available on its results on this website. It is important to us for you to know exactly how well the Fundranker system and its Top Eight Model Portfolio are doing in the current market situation. Although you can find a lot of historical information on this website as well, we don't feel it is right to keep boasting about some great return we made three years ago or five years ago, as if that is the only criterium on which you should base a decision to subscribe to Fidelity Select Fundranker and follow the Fundranker system with your investments. It's nice to know how the Fundranker system has performed in the past, but it is also important to know how it is performing right now.

That said, it seems anticlimatic to report that as our current economic crisis has pulled the general market down significantly, the Top Eight Model Portfolio has followed it down. Because of Fundranker’s heavy weighting in energy and natural resource sectors early in the bear market that started last November, the Top Eight Model Portfolio was able to buck the downtrend through June. It even made all time highs in May and June, while the general market was declining. Since June, however, with the energy and natural resources sectors falling precipitously, and the entire market following suit, the Top Eight Model Portfolio has given it all back and then some.

Fundranker has stayed invested in the market through this difficult time and will continue to stay invested. If you are following the Fundranker system, now is not the time to capitulate and exchange your Select funds to cash. If you have stayed disciplined and fully invested up to now, in fact, this could be a particularly bad time to exchange to cash. It is quite possible that this bear market has reached its lows and now will begin to recover. If you stay fully invested, you won’t miss significant upturns. Staying fully invested repeatedly has been shown to be superior to trying to time the market and almost certainly missing some of the upturns to the detriment of your overall investment return.

Posted 11/1/08 9:15pm ET in Fundranker | Permalink | Comments (0)

Stay Disciplined

The Top Eight Model Portfolio was heavily weighted through August in Fidelity Investments energy and natural resources Select funds. For a considerable length of time, this weighting proved advantageous as the Top Eight Model Portfolio made all time highs in May and June. The energy and natural resource funds let us down in July and August, however, and Fundranker has reduced the Top Eight Model Porftfolio’s exposure to them, at the same time increasing it’s diversification.

Many investors turn tail in tough market conditions, sell their shares, and park the proceeds in cash. Then they are in the unenviable position of having to figure out when to reinvest in the market. It is easy for them to miss out on major upside market moves while they try to decide.

Fundranker, however, remains invested and trusts its technical investment system to reposition the Top Eight Model Portfolio into currently best performing Select funds in order to maximize its potential for future returns. It never misses out on major upside market moves because it is always in the market. In a long term rising market, this strategy more than makes up for market downturns.

Stay disciplined. Stick with the Fundranker system, and let it position you in the best performing funds. View downturns as opportunities to invest new money, rather than as times to panic and cash out.

Posted 9/10/08 3:08pm ET in Fundranker | Permalink | Comments (0)