Williamstown, MA, August 21, 2008 --(PR.com
)-- Sector Momentum Tracker (http://store.fidelityindependentadviser.com/sectortracker.html ) made two changes to its Portfolio today, selling Natural Gas (FSNGX) and Natural Resources (FNARX) and purchasing Pharmaceuticals (FPHAX) and Communications Equipment (FSDCX) with the proceeds. Since its June 2004 inception, Sector Momentum Tracker’s Portfolio has grossed 32.94%, more than double the S&P 500’s 15.79% return for that period.
“Defensive investors have helped boost Pharmaceuticals (FPHAX) 30 places on the momentum ranking table since late June,” noted Don Dion, publisher of Sector Momentum Tracker (http://store.fidelityindependentadviser.com/sectortracker.html) and President of Dion Money Management. “Because of the demographics favoring the health care sector, however, this fund could represent an excellent value over the long term,” Dion added. According to federal statistics, the percentage of hospital inpatients age 65 and over has increased from 20 percent in 1970 to 38 percent in 2006, a trend which Dion believes will continue upward in the future.
Dion credits the Communications Equipment (FSDCX) purchase to the performance of sector leaders. “Qualcomm (QCOM), the mobile phone chipmaker and tech licensing giant, is up 44.19 percent on the year,” Dion said, “the company’s forthcoming HSPA+ technology could be a mobile phone game-changer.” Dion also emphasized the performance of Cisco (CSCO), noting that “Cisco Systems has also pulled out of its slide, thanks to better-than-expected quarterly profits and a relatively robust sales forecast for the remainder of the year.”
Dion attributed the sale of his position in Natural Gas (FSNGX) to Energy Department Reports and analysts who cite the difficulty that storms—like Tropical Storm Fay—cause in production. “In the medium term, look for this fund to stabilize as the spot market reestablishes the traditional seasonal relationship between natural gas supply and demand,” Dion noted in his weekly commentary.
As far as Natural Resources (FNARX), Dion credits a lack of momentum, as “investors rotate out of energy and into non-cyclical sectors such as healthcare.” Despite the fund’s recent setbacks, Dion says that “(FNARX’s) broader mandate has managed to hold onto its gains better than other, more targeted Fidelity Select natural-resources and commodities-focused funds.”
About Sector Momentum Tracker (http://store.fidelityindependentadviser.com/sectortracker.html) : Fidelity Independent Adviser’s Sector Momentum Tracker uses a time-tested formula to calculate relative strength. The Sector Portfolio has returned 43.85% net of fees since its inception in June 2004. With more than 70,000 subscribers in the United States and 29 other countries, Fidelity Independent Adviser publishes four monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
For information and subscription offers, go to http://store.fidelityindependentadviser.com/sectortracker.html
About Publisher Don Dion: In addition to his role as the publisher of Fidelity Independent Adviser, Dion is also president and founder of Dion Money Management (http://www.dionmm.com/), a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Massachusetts, Dion Money Management manages more than $710 million in assets for clients in 49 states and 11 countries. A licensed attorney in Massachusetts and Maine, Mr. Dion has more than 25 years’ experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.
For more information, or a Free Portfolio Review, go to http://www.dionmm.com/ or call toll free: 1-(800) 432-7447