I have held this in my Roth IRA for a couple years, starting with the min investment and adding to that position every month or two along with reinvesting the divs. Over that time my average cost per share is around $9.83. Given its relative stability until recently I am quite shocked that all of the gains over that time period have been erased!
So, this fund sucks. Should I bail out before it gets worse or just wait it out?
I just put in a sell order for this fund which will execute tonight. My losses are not very significant, but I am amazed that I am taking a loss on this fund at all, given how long I have held it and reinvested dividends, and how far up I was only a month ago! As other posters have suggested, something fishy must be going on, the way it has been tanking no matter what the bond markets are doing.
This is the 15th days in a row that this fund has been going down. Yesterday bonds raleied and this fund went down 0.04c I called fidelity and a rep. told me that it went down because the market was down. And when I said that in previous up days in the market this fund went down- he did not know what to say. A good example is today the market raleid 500 points and this fund is down 0.11c I have been an investor for a long time I went into this fund looking for safety, but I might as well invest in stocks-at list the go up sometimes. I have never seen a fund that just goes down for a long period of time regardless of what the market does. In short it is imposible to decipher what causes this fund to either go up or down. I think this fund should be investigated.
You have to keep in mind that this is a bond fund and not a stock fund, so when the Dow Jones goes up 500 points, that has no impact upon bond prices. In fact, bond prices tend to be inversely correlated to stock prices, meaning that when stock prices go up, bond prices go down, and when stock prices go down, bond prices go up.
This fund was definitely not the place to go for safety. If you want safety you might want to go into Fidelity's or Vanguard's GNMA fund when the prices drops down a little.
Probably the correct thing to do is a class action suit. Fidelity is now acting like Fannie and Freddie, flipping money around as they please. Anyone in this fund should not be suffering because of the almost 100% failure of all the other fideltiy funds.IMHO