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Fundranker Blog—Correction Hits Market

Correction Hits Market

With its plunge on May 20, the market finished wiping out its 2010 gains and sent major indexes into correction territory. As of May 20, the S&P 500 Index (as measured by Fidelity’s Spartan 500 Index - Investor Class Fund) and the Nasdaq Composite Index (as measured by Fidelity’s Nasdaq Composite Index Fund) fell 11.8% and 12.8%, respectively, from their recent bull market highs on Apil 23. Fundranker’s Top Eight Model Portfolio fell 13.2% over the same time period.

Much of the volatility in the market during the last week of trading in April and all of May so far can be attributed to investor concern about the European debt crisis and the possibility it could derail world-wide economic recovery from the Great Recession. For an alternate viewpoint, however, check out Tim Duy’s article about how the European debt crisis could be a net positive for the U.S.

Posted 5/21/10 1:02pm ET in Fundranker, Market