The MSCI EAFE rallied 1.99 percent last week,

Transcription

1 GLOBAL MOMENTUMGUIDE MARCH 20, 2017 MUTUALFUNDINVESTORGUIDE.COM Matthew D. Sauer Founder & Chief Investment Officer Matthew Sauer is the Founder and Chief Investment Officer of the Mutual Fund Investor Guide family of newsletters. Each month he analyzes and provides buy, sell and hold recommendations for hundreds of mutual funds and ETFs in three newsletters: The Investor Guide to Fidelity Funds, The ETF Investor Guide and The Investor Guide to Vanguard Funds. Prior to starting the Mutual Fund Investor Guide, Matthew was President and Chief Investment Officer of the Fidelity Independent Adviser, ETF Report & Sector Momentum Tracker newsletters. WEEKLY SECTOR MOVERS Sell Transportation (FSRFX) Energy Services (FSESX) No Trades Trades Fidelity Select Sector Portfolio ETF Sector Portfolio The MSCI EAFE rallied 1.99 percent last week, while the Russell 2000 Index gained 1.92 percent. The Nasdaq advanced 0.67 percent and the S&P 500 Index increased 0.24 percent. The Dow Jones Industrial Average returned 0.07 percent. The ETF Blended Portfolio climbed 2.58 percent over the past week. The ETF International Portfolio rose 2.44 percent. The ETF Sector Portfolio increased 2.27 percent and the Fidelity Select Sector Portfolio returned 0.40 percent. In 2017, the Nasdaq has gained 9.62 percent. The MSCI EAFE Index returned 6.83 percent, the S&P 500 Index 6.23 percent, the DJIA 5.84 percent and the Russell percent. The ETF International Portfolio is up 8.26 percent year-to-date. The ETF Blended Portfolio has rallied 4.99 percent. The ETF Sector Portfolio rose 4.22 percent and the Fidelity Select Portfolio climbed 2.31 percent. Healthcare (FSPHX) rose five places in the relative momentum rankings. Defense & Aerospace (FSDAX), Environmental Services (FSLEX) and Biotechnology (FBIOX) each gained ground. Losing momentum were Natural Gas (FSNGX), Energy Services (FSESX) and Transportation (FSRFX). Among sector ETFs, ishares U.S. Home Construction (ITB) climbed twelve places. VanEck Nuclear Energy (NLR), PowerShares Clean Energy (PBW), SPDR Consumer Staples (XLP) and SPDR Utilities (XLU) all increased momentum. SPDR Oil & Gas Equipment (XES), ishares U.S. Oil Equipment (IEZ), SPDR Oil & Gas Exploration & Production (XOP) and U.S. Brent Oil (BNO) declined in relative momentum. Guggenheim China Real Estate (TAO) moved up seventeen places in the international ETF rankings. ishares India 50 (INDY) and Guggenheim China Small Cap (HAO) also moved up in the rankings. ishares MSCI Peru (EPU), ishares MSCI Canada (EWC), VanEck Africa (AFK) and ishares MSCI Thailand (THD) all lost momentum. Buy Defense & Aerospace (FSDAX) Environmental & Alt Energy (FSLEX) No Trades SECTOR MOVERS 1 FIDELITY 2-4 Australia (EWA) ETF International Portfolio VanEck India Small Cap (SCIF) ETF SECTOR 4-9 ETF INTL ETF BLENDED 15 No Trades ETF Blended Portfolio No Trades DISCLOSURE 17 1

2 FIDELITY SECTOR MOMENTUM RANKINGS Name Symbol 12/23 12/30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 Banking FSRBX Semiconductors FSELX Computers FDCPX Financial Services FIDSX Chemicals FSCHX Technology FSPTX Brokerage FSLBX Multimedia FBMPX Environmental FSLEX Defense & Aero FSDAX Consumer Finance FSVLX Transportation FSRFX Energy Services FSESX Air Transport FSAIX Insurance FSPCX Wireless FWRLX Materials FSDPX Software FSCSX Industrials FCYIX Comm Equip FSDCX Biotechnology FBIOX Healthcare Svcs FSHCX Automotive FSAVX S&P 500 Index SPX IT Services FBSOX Industrial Equip FSCGX Medical Equip FSMEX Constr & Housing FSHOX HealthCare FSPHX Leisure FDLSX Telecommunications FSTCX Retailing FSRPX Utilities FSUTX Consumer Discr FSCPX Consumer Staples FDFAX Natural Gas FSNGX Energy FSENX Natural Resources FNARX Pharmaceuticals FPHAX Government Income FGOVX Gold FSAGX

3 FIDELITY SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year Air Transport FSAIX Automotive FSAVX Banking FSRBX Biotechnology FBIOX Brokerage FSLBX Chemicals FSCHX Comm Equip FSDCX Computers FDCPX Constr & Housing FSHOX Consumer Discr FSCPX Consumer Finance FSVLX Consumer Staples FDFAX Defense & Aero FSDAX Energy FSENX Energy Services FSESX Environmental Svcs FSLEX Financial Services FIDSX Gold FSAGX Government Income FGOVX HealthCare FSPHX Healthcare Svcs FSHCX Industrial Equip FSCGX Industrials FCYIX Insurance FSPCX IT Services FBSOX Leisure FDLSX Materials FSDPX Medical Equip FSMEX Multimedia FBMPX Natural Gas FSNGX Natural Resources FNARX Pharmaceuticals FPHAX Retailing FSRPX S&P 500 SPX Semiconductors FSELX Software FSCSX Technology FSPTX Telecommunications FSTCX Transportation FSRFX Utilities FSUTX Wireless FWRLX

4 FIDELITY SELECT SECTOR RETURNS PERIOD PORTFOLIO BENCHMARK S&P 500 Nasdaq Dow Russell 2000 YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 FIDELITY PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 1 Banking FSRBX $24, /14/ % 2 Semiconductors FSELX $29, /20/ % 3 Computers FDCPX $20, /27/ % 4 Financial Services FIDSX $19, /28/ % 5 Chemicals FSCHX $21, /06/ % 6 Technology FSPTX $18, /13/ % 7 Brokerage FSLBX $20, /12/ % 8 Multimedia FBMPX $20, /13/ % 12 Transportation FSRFX $20, /21/ % 13 Energy Services FSESX $22, /24/ % $216, % THIS WEEK S FIDELITY TRADE RECOMMENDATIONS At the close of trading on March 20, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold each Fidelity fund for 30 days to avoid a short-term trading fee even if it falls out of the top 10. Last Week s Sell Transactions Sell Transportation (FSRFX) Energy Service (FSESX) Buy Defense (FSDAX) Environmetal (FSLEX) Date Fund Symbol Shares Buy Value Sell Proceeds Profit 3/13/2017 Air Transport FSAIX $17, $18, $

5 ETF SECTOR MOMENTUM RANKINGS Name Symbol 12/23 12/30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 Glb X Copper Miners COPX Glb X Uranium URA VanEck Steel SLX SPDR S&P Reg Bank KRE ishares US Reg Banks IAT SPDR S&P Bank KBE ishares US Broker Dealers IAI ishares Semiconductor SOXX ishares US Financial Svcs IYG SPDR Financial XLF SPDR Metals & Mining XME VanEck Coal KOL SPDR S&P Cap Mkt KCE VanEck Rare Earth REMX ishares US Finance IYF SPDR S&P Insurance KIE PShrs DB Base Metals DBB ETFS Palladium PALL ishares US Technology IYW ishares US Aero & Defense ITA SPDR Biotech XBI ishares US Insurance IAK ishares NA Networking IGN ishares NA Technology IGM ishares DJ Transports IYT SPDR Technology XLK SPDR DJIA DIA SPDR Industrial XLI ishares NA Software IGV ishares US Home Constr ITB ishares US Basic Materials IYM ishares Russell2000 IWM Glb X Lithium LIT PShrs Private Equity PSP ishares US Industrial IYJ FrTrust DJ Internet FDN PShrs NASDAQ Internet PNQI Guggenheim Shipping SEA PShrs Dyn Leisure PEJ SPDR S&P 500 SPY VanEck Ag Business MOO SPDR Basic Materials XLB Guggenheim Timber CUT FrTrust Global Auto CARZ SPDR Oil & Gas Equip XES ishares US Med Devices IHI ishares US Oil Equip IEZ FrTrust Biotech FBT PShrs Dyn Media PBS

6 ETF SECTOR MOMENTUM RANKINGS Name Symbol 12/23 12/30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 SPDR Cons Disc XLY ishares US Cons Service IYC PShrs Water PHO Global X Social Media SOCL SPDR Homebuilders XHB ishares US Healthcare IYH ishares US Cons Goods IYK ishares NASDAQ Biotech IBB SPDR Healthcare XLV ipath DJ Livestock COW VanEck Gaming BJK SPDR Utilities XLU ishares US Utilities IDU SPDR Cons Staples XLP ishares US Telecom IYZ US Brent Oil BNO VanEck Nuclear Energy NLR ishares NA Natural Res IGE PShrs Clean Energy PBW SPDR Energy XLE ishares US Oil & Gas Exp IEO FrTrust Global Wind FAN SPDR Oil & Gas Explor XOP ishares US Energy IYE PShrs DB Oil DBO ishares US Real Estate IYR ishares GSCI Commodity GSG ishares US Preferred PFF PShrs Fin Preferred PGF US Oil USO Teucrium Soybean SOYB ishares C & S Realty ICF VanEck Jr Gold Miners GDXJ Teucrium Corn CORN ishares Silver Trust SLV PShrs DB Agriculture DBA FrTrust Natural Gas FCG ETFS Platinum PPLT SPDR Retail XRT ishares Agg Bond AGG SPDR Pharmaceuticals XPH ishares Comex Gold IAU SPDR Gold GLD VanEck Gold Miners GDX Glb X Silver Miners SIL Guggenheim Solar Energy TAN ishares 20+ Yr Tres Bond TLT US Natural Gas UNG

7 ETF SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ETFS Palladium PALL ETFS Platinum PPLT FrTrust Biotech FBT FrTrust DJ Internet FDN FrTrust Global Auto CARZ FrTrust Global Wind FAN FrTrust Natural Gas FCG Glb X Copper Miners COPX Glb X Lithium LIT Glb X Silver Miners SIL Glb X Uranium URA Global X Social Media SOCL Guggenheim Shipping SEA Guggenheim Solar Energy TAN Guggenheim Timber CUT ipath DJ Livestock COW ishares 20+ Yr Tres Bond TLT ishares Agg Bond AGG ishares C & S Realty ICF ishares Comex Gold IAU ishares DJ Transports IYT ishares GSCI Commodity GSG ishares NA Natural Res IGE ishares NA Networking IGN ishares NA Software IGV ishares NA Technology IGM ishares NASDAQ Biotech IBB ishares Russell2000 IWM ishares Semiconductor SOXX ishares Silver Trust SLV ishares US Aero & Defense ITA ishares US Basic Materials IYM ishares US Broker Dealers IAI ishares US Cons Goods IYK ishares US Cons Service IYC ishares US Energy IYE ishares US Finance IYF ishares US Financial Svcs IYG ishares US Healthcare IYH ishares US Home Constr ITB ishares US Industrial IYJ ishares US Insurance IAK ishares US Med Devices IHI ishares US Oil & Gas Exp IEO ishares US Oil Equip IEZ ishares US Preferred PFF ishares US Real Estate IYR ishares US Reg Banks IAT ishares US Technology IYW

8 ETF SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ishares US Telecom IYZ ishares US Utilities IDU MV Ag Business MOO MV Coal KOL MV Gaming BJK MV Gold Miners GDX MV Jr Gold Miners GDXJ MV Nuclear Energy NLR MV Rare Earth REMX MV Steel SLX PShrs Clean Energy PBW PShrs DB Agriculture DBA PShrs DB Base Metals DBB PShrs DB Oil DBO PShrs Dyn Leisure PEJ PShrs Dyn Media PBS PShrs Fin Preferred PGF PShrs NASDAQ Internet PNQI PShrs Private Equity PSP PShrs Water PHO SPDR Basic Materials XLB SPDR Biotech XBI SPDR Cons Disc XLY SPDR Cons Staples XLP SPDR DJIA DIA SPDR Energy XLE SPDR Financial XLF SPDR Gold GLD SPDR Healthcare XLV SPDR Homebuilders XHB SPDR Industrial XLI SPDR Metals & Mining XME SPDR Oil & Gas Equip XES SPDR Oil & Gas Explor XOP SPDR Pharmaceuticals XPH SPDR Retail XRT SPDR S&P 500 SPY SPDR S&P Bank KBE SPDR S&P Cap Mkt KCE SPDR S&P Insurance KIE SPDR S&P Reg Bank KRE SPDR Technology XLK SPDR Utilities XLU Teucrium Corn CORN Teucrium Soybean SOYB US Brent Oil BNO US Natural Gas UNG US Oil USO

9 ETF SECTOR RETURNS PERIOD PORTFOLIO BENCHMARK S&P 500 Nasdaq Dow Russell 2000 YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 ETF SECTOR PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE Value DATE PURCHASED PERCENT 2 Glb X Uranium URA $13, /30/ % 3 VanEck Steel SLX $26, /09/ % 4 SPDR S&P Reg Bank KRE $22, /07/ % 6 SPDR S&P Bank KBE $17, /14/ % 7 ishares US Broker Dealers IAI $17, /14/ % 8 ishares Semiconductor SOXX $23, /08/ % 9 ishares US Financial Svcs IYG $15, /28/ % 11 SPDR Metals & Mining XME $19, /06/ % 12 VanEck Coal KOL $21, /05/ % 14 VanEck Rare Earth REMX $18, /27/ % $196, % THIS WEEK S ETF SECTOR TRADE RECOMMENDATIONS Sell No Trades At the close of trading on March 20, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same sector. There is no minimum holding period for ETFs. Buy No Trades Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit No trades last week 9

10 ETF INTERNATIONAL MOMENTUM RANKINGS Name Symbol 12/23 12/30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 VanEck Brazil Small Cap BRF VanEck Russia Sm Cap RSXJ ishares Poland EPOL Glb X Argentina ARGT ishares Brazil EWZ WTree Japan Hedged DXJ ishares S&P Latin Am 40 ILF WTree Europe Hedged HEDJ ishares Austria EWO VanEck India Sm Cap SCIF VanEck Russia RSX WTree Japan Sm Cap Div DFJ ishares Australia EWA WTree Dreyfus Brazil Real BZF WTree Emg Mkt Sm Cap DivDGS WTree Emg Markts HiYld DEM ishares Taiwan EWT WTree India EPI ishares Global 100 IOO SPDR Emg Mkts Sm Cap EWX ishares Pacific ex-japan EPP ishares Chile ECH ishares South Korea EWY ishares Sweden EWD ishares Spain EWP Glb X Norway 30 NORW ishares ACWI Index ACWI ishares Germany EWG ishares Emerging Markets EEM ishares Netherlands EWN Gugg China Sm Cap HAO ishares MSCI Italy EWI ishares Singapore EWS Gugg China RE TAO ishares DJ Euro 50 FEZ Wtree Intl Hedged IHDG WTree Euro Sm Cap Div DFE ishares India 50 INDY PwrShrs Golden Dragon PGJ China Large Cap FXI ishares Japan Sm Cap SCJ ishares Canada EWC ishares EMU Index EZU ishares Israel Cap Invest EIS ishares South Africa EZA VanEck Africa AFK ishares France EWQ

11 ETF INTERNATIONAL MOMENTUM RANKINGS Name Symbol 12/23 12/30 1/6 1/13 1/20 1/27 2/3 2/10 2/17 2/24 3/3 3/10 3/17 ishares ACWI ex-us ACWX ishares Thailand Invest THD ishares Asia ex Japan AAXJ ishares All Peru EPU ishares MSCI EAFE EFA SPDR MidEast & Africa GAF ishares S&P Europe 350 IEV ishares Japan EWJ ishares Switzerland EWL ishares Ireland EIRL ishares Hong Kong EWH Glb X Greece 20 GREK ishares MSCI U Kingdom EWU ishares Finland EFNL PShares USD Bullish UUP ishares Belguim EWK Glb X Colombia GXG WTree USD Bullish USDU ishares MSCI Emg MinVol EEMV db xtrackers China ASHR CurrShrs Aust Dollar FXA WTree Emg Currency CEW ishares MSCI EAFE MinVol EFAV ishares Denmark EDEN ishares New Zealand ENZL VanEck Indonesia IDX ishares S&P World Property WPS WTree China Yuan CYB Wtree Asia Local Debt ALD CurrShrs Can Dollar FXC ishares Maylasia EWM ishares Mexico EWW CurrShrs SwissFranc FXF VanEck Vietnam VNM CurrShrs Swed Krona FXS ishares Turkey TUR Euro Currency Trust FXE ishares Philippines EPHE Vanguard Intl Bond BWX CurrShrs Brit Pound FXB CurrShrs Japanese Yen FXY VanEck Egypt EGPT Glb X Nigeria NGE

12 ETF INTERNATIONAL PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year CurrShrs Aust Dollar FXA CurrShrs Brit Pound FXB CurrShrs Can Dollar FXC CurrShrs Japanese Yen FXY CurrShrs Swed Krona FXS CurrShrs SwissFranc FXF db xtrackers China ASHR Euro Currency Trust FXE Glb X Argentina ARGT Glb X Colombia GXG Glb X Greece 20 GREK Glb X Nigeria NGE Glb X Norway 30 NORW Gugg China RE TAO Gugg China Sm Cap HAO ishares ACWI ex-us ACWX ishares ACWI Index ACWI ishares All Peru EPU ishares Asia ex Japan AAXJ ishares Australia EWA ishares Austria EWO ishares Belguim EWK ishares Brazil EWZ ishares Canada EWC ishares Chile ECH ishares China Large Cap FXI ishares Denmark EDEN ishares DJ Euro 50 FEZ ishares Emerging Markets EEM ishares EMU Index EZU ishares Finland EFNL ishares France EWQ ishares Germany EWG ishares Global 100 IOO ishares Hong Kong EWH ishares India 50 INDY ishares Ireland EIRL ishares Israel Cap Invest EIS ishares Japan EWJ ishares Japan Sm Cap SCJ ishares Maylasia EWM ishares Mexico EWW ishares MSCI EAFE EFA ishares MSCI EAFE MinVol EFAV ishares MSCI Emg MinVol EEMV ishares MSCI Italy EWI ishares MSCI U Kingdom EWU

13 ETF INTERNATIONAL PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ishares Netherlands EWN ishares New Zealand ENZL ishares Pacific ex-japan EPP ishares Philippines EPHE ishares Poland EPOL ishares S&P Europe 350 IEV ishares S&P Latin Am 40 ILF ishares S&P World Property WPS ishares Singapore EWS ishares South Africa EZA ishares South Korea EWY ishares Spain EWP ishares Sweden EWD ishares Switzerland EWL ishares Taiwan EWT ishares Thailand Invest THD ishares Turkey TUR MV Africa AFK MV Brazil Small Cap BRF MV Egypt EGPT MV India Sm Cap SCIF MV Indonesia IDX MV Russia RSX MV Russia Sm Cap RSXJ MV Vietnam VNM PShares USD Bullish UUP PwrShrs Golden Dragon PGJ SPDR Emg Mkts Sm Cap EWX SPDR MidEast & Africa GAF Vanguard Intl Bond BWX Wtree Asia Local Debt ALD WTree China Yuan CYB WTree Dreyfus Brazil Real BZF WTree Emg Currency CEW WTree Emg Markts HiYld DEM WTree Emg Mkt Sm Cap Div DGS WTree Euro Sm Cap Div DFE WTree Europe Hedged HEDJ WTree India EPI Wtree Intl Hedged IHDG WTree Japan Hedged DXJ WTree Japan Sm Cap Div DFJ WTree USD Bullish USDU

14 ETF INTERNATIONAL RETURNS PERIOD PORTFOLIO MSCI EAFE S&P 500 Nasdaq Dow YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 INTERNATIONAL PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 1 VanEck Brazil Small Cap BRF $14, /09/ % 3 ishares Poland EPOL $13, /06/ % 4 Glb X Argentina ARGT $18, /23/ % 5 ishares Brazil EWZ $15, /18/ % 6 WTree Japan Hedged DXJ $10, /28/ % 8 WTree Europe Hedged HEDJ $12, /06/ % 9 ishares Austria EWO $12, /21/ % 11 VanEck Russia RSX $12, /21/ % 12 WTree Japan Sm Cap Div DFJ $13, /07/ % 13 ishares Australia EWA $12, /06/ % $136, % THIS WEEK S INTERNATIONAL TRADE RECOMMENDATIONS At the close of trading on March 20, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same geographic region. There is no minimum holding period for ETFs. Sell Australia (EWA) Buy India Small Cap (SCIF) Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit No trades last week 14

15 ETF BLENDED PORTFOLIO PERIOD PORTFOLIO S&P 500 Nasdaq RUSSELL 2000 MSCI EAFE YTD Week Week Week Week Year Inception* *Inception on 12/31/2013 BLENDED PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 2 Global X Uranium URA $6, /30/ % 3 Market Vectors Steel SLX $14, /02/ % 4 VanEck Brazil Small Cap BRF $7, /10/ % 6 SPDR Regional Bank KRE $7, /23/ % 8 SPDR Bank KBE $7, /19/ % 10 ishares Semiconductor SOXX $10, /15/ % 13 ishares Poland EPOL $10, /13/ % 16 Market Vectors Coal KOL $12, /05/ % 21 WTree Japan Hedged DXJ $8, /27/ % 134 WTree USD Bullish USDU $7, /16/ % $93, % THIS WEEK S INTERNATIONAL TRADE RECOMMENDATIONS At the close of trading on March 20, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same country or sector. There is no minimum holding period for ETFs. Sell No Trades Buy No Trades Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit 3/13/2017 VanEck Rare Earth REMX $19.67 $10, $9, $

16 16

17 WHAT IS THE GLOBAL MOMENTUM GUIDE? The Mutual Fund Investor Guide: Global Momentum Guide delivers a strategy which entails investing in momentum leading exchange-traded funds (ETFs) and mutual funds, with the goal of generating long-term market beating gains. Momentum investing involves finding the stocks or sectors that are outperforming the market and buying them, while avoiding or even shorting stocks or sectors that are under performing. How the Global Momentum Guide Works Each week, the Global Momentum Guide will report updated momentum rankings along with trade advice. Subscribers receive buy, sell and hold advice on several portfolios made up of Fidelity Select mutual funds, sector ETFs and international ETFs. Investors hold the top 10 funds based on our proprietary ranking system, adjusted for correlation. When a fund falls from the top 10, we will issue a sell signal on it, and simultaneously issue a buy order on a rising fund that replaces it. Funds that remain in the top 10 are held. The system used by the Global Momentum Guide is designed to generate long-term out performance. It is also designed to remove human emotion from trading. Sometimes sell orders are issued for sectors that are extremely popular with investors and other times it will issue a hold signal on a sector experiencing a large correction that has many investors panicking. This can result in volatile returns, but our experience with the system has shown that some of the largest gains are made in sectors that experience big corrections during the course of a bull market. One of the biggest benefits of using the Global Momentum Guide is that it takes emotion and guesswork out of investing. Why the Global Momentum Guide Works Different sectors lead the stock market at each stage of a market cycle. For instance, consumer discretionary stocks typically lead in the early stage of a bull market, technology stocks lead in the middle, and consumer staples lead at the end. These stages of the market can last for months or even years. Countries, commodities and currencies all experience the same cyclical movements as investor move in and out of investments in waves. There are many explanations for cyclical behavior in the markets, but we don t worry about the whys because the Global Momentum Guide uses a mechanical system of technical indicators to select investments. These signals tells us which funds are leading and which are lagging, and we position the portfolio in the leading funds. If technology stocks lead in the early part of a bull market, our system will pick that up and issue a buy signal. Momentum investing works because investors have been reliably predictable throughout history there hasn t been a market yet where investors didn t exhibit some cyclical behavior. The Global Momentum Guide is designed to capture the gains from these big winners during each bull market phase of the stock market. What Do I Get When I Subscribe? Every week you will receive an updated ranking of all the funds covered in our newsletter, plus buy, hold and sell advice on each of the portfolios. How Do I Begin Following the Model? To begin following a model, purchase equal dollar amounts of each holding in the model. We will hold the funds for at least a week in the case of ETFs, and for 30 days with Fidelity Select funds due to a short term trading fee on Fidelity Select funds held less than 30 days. ETF INVESTOR GUIDE Each month we provide buy, hold and sell recommendations for hundreds of ETFs from companies including Fidelity, ishares, SPDR and Power- Shares. Additionally, you will also have access to our model portfolios, specifically created for conservative, moderate and aggressive investors. To learn more, call (888) INVESTOR GUIDE TO VANGUARD FUNDS For years, we have covered a limited number of Vanguard mutual funds. In 2014, we launched a newsletter dedicated specifically to Vanguard funds and no-transaction-fee funds accessible to Vanguard investors. We provide numerous model portfolios, plus buy, hold and sell recommendations on over 400 mutual funds. I am confident you will find this advice invaluable as you make your investment decisions. To learn more, call (888) DISCLOSURE: Mutual Fund Investor Guide, LLC (MFIG) is an independent company unaffiliated with any of the fund companies discussed in this newsletter, including Fidelity Investments. These results include the reinvestment of all dividends and capital gains. Model trading does not involve financial risk; model trading cannot completely duplicate the financial risk associated with actual trading. MFIG is not an investment advisor and does not provide specific investment advice. This newsletter has been prepared solely for informational purposes. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. All investments involve risk including total loss of principal. 17