FSII - The Worst is Over? Message Board

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Technology Stocks : FSII - The Worst is Over?

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To: Donald Wennerstrom who wrote (2094)	7/12/1998 3:13:00 PM
From: Alan Gallaspy	of 2754

Lets take a step back and identify what our hypothetical investor is doing. He (or she) is actively trading a sector (semi-equips) and trying to rotate out into a less volatile sector when equips seem high. Don gave the example of Coke, I guess we could use other large cap consumer non-durables as well. Is that as good as we can do? Should we be monitoring other sectors for signs of a good place to stick money, maybe large cap pharmaceuticals (Merck), giant banks or financial stocks (Citibank), maybe oil (Exxon), retailers (Wal-Mart), or something else? Should we look for low volatility in our "other" sector or for a previously beaten down sector showing signs of life? I am going to try modeling Don's sector rotation idea with the above companies and maybe a few others, using his assumptions about tax liability. I have usually focused on individual companies without much regard for what the rest of their sector is doing, but from Don's semi-equip/Coke rotation example, it would seem good to monitor a few sectors that do not rise and fall in lock step with each other.

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