I started investing in FRESX on Sept. 14, 2006
Fidelity Real Estate fund
2006-10-04 06:46:41 · 3 answers · asked by sillybilly 1 in Business & Finance ➔ Investing
You bought the stock two days after a 10% drop in price. What was that about. I think that might be more important than anything I could tell you.
Technically, the stock is still in an uptrend on the daily chart. The intraday charts are almost non-existent because it is so thinly traded - no volume.
I would put a stop on it at $33.25 and let the market tell me if and when it's time to get out.
2006-10-04 07:38:36 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
In this market - seems like everything is going up.
Regarding your fund - there is another answer I want to clarify for you although you probably realize this. There is no intraday volume - not because it is thinly traded but because it is a mutual fund. The big drop before your purchase - this really wasn't a drop but a capital gains and dividend distribution made on 9/8.
This is a real estate investment fund - I think sector funds are fine but I see them as smaller percentages of a portfolio because they are so concentrated in the 'same' stocks. Things that will hurt this fund are increases in interest rates and weakness in the economy - if you feel secure that these aren't an issue - the fund type should probably be fine.
I looked at your fund in morningstar and saw the following headline with the story link below it. I am not sure whether this is a general link or a premium link AND am sorry if you can't get to the story - but give it a try.
Fidelity Real Estate Investment's 2006 underperformance isn't cause for alarm; its strengths remain intact.
http://quicktake.morningstar.com/Fund/MorningstarAnalysis.asp?Country=USA&Symbol=FRESX
2006-10-04 15:02:56 · answer #2 · answered by sundance 2 · 0⤊ 0⤋
U.S. real estate may have had a soft landing. But I don't think its over yet. I am not bull enough on U.S. real estate right now. There are some odd things with Real Estate in the U.S. that is similar to the dot com bust. For example, how are 1 bedoom apartments in San Diego costing $500,000+. There seems to be something wrong with the valuation of real estae. It might blow over, but I would be nervous. I think you better bet would in international real estate.
Browse, FIREX, which invests into Europe and Asia. It's a young fund, but looks nice.
2006-10-04 15:23:44 · answer #3 · answered by MacCurious 2 · 0⤊ 0⤋