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

To: rkf who wrote (2683)	6/4/2000 12:39:00 PM
From: selectinvestor	Read Replies (2) \| Respond to of 4916

Hello, my name is Russell Cox. I publish The Select Investor newsletter. selectinvestor.com I would like to become a regular contributor to this list, to this end I am posting the free monthly commentary published by The Select Investor. This commentary talks mostly of financials, but our portfolios are mostly in techs at this time, though this may change. If any of my posts appear to commercial please let me know. I want to be a contributor, not an advertiser. Thanks for having a good list, I'm looking forward to some lively discussions. Russell Cox ----------------------------------------------------------------------- The Select Investor Monthly Commentary June 2, 2000 ----------------------------------------------------------------------- ÿ May - Will April correction bring May rally ? May rally ? Well that depends on which sectors you were in. There was no rally in technologies. The NASDAQ and all of the technology sector funds lost considerable ground in May. But, as we often point out, the markets rarely go straight down with all sectors falling together. In May, had you been invested in the financial sectors, you would have done quite well indeed. The Power of Sector Investing Top Five Select Funds 4 Week Annualized Relative Total Return to S&P Regional Banks 20.2 % 263 % 647 % Home Finance 16.5 % 215 % 529 % Financial Services 14.7 % 191 % 471 % Insurance 14.2 % 185 % 455 % Electronics 8.49 % 110 % 272 % S & P 500 3.11 % 40.5 % 100 % June 2, 2000 ÿ June - June - July Rally Historically, the markets tend to rally in June and July. The June - July rally is the result of the confluence of two dates : June 30th is the last day of the second quarter and July 15th is the last day for mid-year pension fund contributions. Because of the July 15th deadline, large amounts of money flow into pension funds and mutual funds in June and early July. Most portfolio managers will want to have this new money invested in time for the end of quarter reports dated June 30. The usual result is strong growth in June with the markets peaking on July 15th. This year, extreme nervousness about interest rates, inflation, and the June 27 - 28 Fed meeting will most likely cause a great deal of volatility in June. In the absence of some unpredictable bad news the billions piling up on the sidelines should come into the market in June and July. ÿ Conclusion Indications are for a strong June - July Rally with a sharp cutoff after July 15th. So, a strategy of getting in in early June and out by mid-July should work well. If investors continue to believe that the Fed is done raising interest rates the financial sectors should follow through with strong performance in June and July. Also, we expect technologies to perform very strongly. ÿÿÿÿÿÿ Warning : Do not invest in the Select funds using only the information provided in this free commentary. You need much more timely information. Our subscribers receive weekly commentaries and e-mail trade updates providing the date and time to get in or out of a given sector.