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

To: gregor who wrote (2653)	5/24/2000 12:15:00 AM
From: Julius Wong	Read Replies (1) \| Respond to of 4916

Gregor: I don't know too many theories. But the market is so bad, to talk about theories is more interesting than talk about the market. I think the Modern Portfolio Theory works well with sector funds. Buy high alpha funds. The beta should be replaced by 2 new betas, a bull beta for up markets and a bear beta for down markets. If a fund has beta = 1.5, its bull beta is probably 1.3 and the bear beta about 1.9. In a down market we must take small losses quickly, because the bear beta is 1.9. Looks like Mr. Greenspan will move interest rates higher in the coming months. But FSPCX and FSRBX are very strong, why? Julius