Rick,
I agree on the electronics sector. I would have invested by now if I knew anything about the sector. But I like to stick to my knitting, if you know what I mean. Every time I wander into unknown territory, I get sideswiped by something from left field. Hence my harping about the Energy Service sector, which I know like the back of my hand.
Regarding Energy Services, I just read Salomon Brothers latest worldwide stock review, organized by sector, and noticed that about 70-80% of the oil drilling stocks, after the recent oil & gas price declines, are currently rated "SB" for strong buy, while most of the rest were rated "B" for buy. Hardly anything was rated "H" for hold. Unbelievable!
Question regarding your Vanguard Select Energy fund: does it just buy energy companies, or energy service companies too? IMO the service sector is a better investment than the energy sector per se. Witness the relative strength of FSESX versus FSENX on the aformentioned web page. Rationale? - the increased leverage this sector is receiving from fifteen years of rationalization, extremely tight supply/demand balances, and increased capital spending budgets among oil & gas companies.
How did your Vanguard Select Energy fund's performance compare, post expenses and loads, to FSESX, post expenses and loads, for the 1-yr, 3-yr, and 5-yr time periods? |
