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Strategies & Market Trends : Fidelity Select Sector funds -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (1887)	6/9/1999 10:02:00 PM
From: Julius Wong	Respond to of 4916

Mike: There are reasons why gold should go up: the Balkan war and rising interest rates. But gold is at 20 years low, and it's still in a down trend. It may drop below $250 soon. Why did the gold move down? I don't know the reasons. In my opinion, the IMF and the central banks are at least partially responsible for the down turn. The gold price will not go up if the IMF and the central banks put pressure on the gold market. I'll avoid gold funds now. Julius

To: Mike McFarland who wrote (1887)	6/10/1999 6:38:00 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 4916

FSAGX...There was a brief article on CNBC this afternoon. A few short comments from the fund manager of Lexington Gold: He was generally bearish for the short term, but felt there would certainly be companies in a good position to profit when things turn up. The article suggested that demand is good, central bank selling could be less than anticipated (did not say why however) and that some people are looking for gold to turn up toward the end of the summer. At 20-year price lows, I should hope we are near the bottom. However, apparently gold "has breached what is considered to be support at $265". Well, then just move the phoney support line, heheh. One should note, that often these sorts of articles seem to be run just at the point of maxiumum pain, and I am fairly comfortable that I took the plunge at 12.60--not a terrific price, but it looked like the trend had reversed last week, and I sort of got faked out. I should say that I am okay with the prospect of being underwater 20% several months from now, at which point I will consider adding another 1000 shares--as I have already mentioned. I do believe that averaging down in a commodity is different from averaging down in a stock, but comments contrary to this impression of mine would be welcome. We will certainly have to wait for a better technical bottom, and I look forward to seeing some comments in the weeks ahead from our thread leader, but I will go out on a limb and say that XAU bottomed at 59 and FSAGX bottomed at 12.12 yesterday. Now let's see what the numbers look like on Friday--I believe there are some important economic statistics due out. --Mike ps, Julius--I did see your bearish comments just a few posts ago...just sticking to my guns for the moment--I appreciate your thoughts.