This post is more of an FYI than a specific call to action, still a reasonably good trend is a reasonably good trend.
As many investors know by now the November 1st into May time period has historically been very good for the stock market. One of the better performing sectors during this time period has tended to be the semiconductor/electronics sectors. Among tickers worthy of analysis are:
-FSELX (Fidelity Select Electronics mutual fund)
-SMH (HOLDRs Semiconductor ETF)
Figure 1 – FSELX Performance October 31 to April 30
Figure 2 – $1,000 invested in FSELX 10/31 through 4.30 since 10/1994
In a nutshell:
-FSELX has been up 14 times (74%) and down 5 times (26%).
-The average gain was +18.7% and the median gain was +13.7%.
Please do not read this post and think “Aha, semiconductor/electronic stocks are sure to rally.” That is not the implication I am trying to make. Simply remember that the “trend is your friend” and that this sector tends to perform well during this time period. As long as these stocks act well it may be wise to give the bullish case the benefit of the doubt.