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

To: rkf who wrote (2685)	6/5/2000 1:20:00 PM
From: selectinvestor	Respond to of 4916

Hi Kent, Thanks for the reply. You can use our commentaries as a general guide to future market behavior while investing in the funds of your choice. For example, on March 9th, we moved all four of our model portfolios 100% to cash ( The NASDAQ peaked on March 10th ). You could have used this as a signal to become more defensive with your own investments. Our timing is not always perfect however; we moved back into technologies a few weeks too early and the following excerpt from the May 26th weekly commentary addresses why we held our positions even though they had lost quite a bit since we bought back in on May 1st. We continue to believe that we are in the correct sectors. Economic fundamentals are beginning to improve. The US economy is beginning to show signs of slowing, suggesting that both interest rates and inflation will stop rising soon. It is believed that when analysts are convinced of this, the money piling up on the sidelines will begin flowing into the markets causing a sharp, strong summer rally. If we were on the sidelines, we would miss much of the gains in this rally, since the first week is expected to be explosive. You could have used this comment as a signal to move back into the market, or to hold if you had gotten back in. As of Friday June 2nd, our portfolios have recovered all of their losses and more. BTW, our goal is to try to identify trends that will last form 3 to 6 months. So, we typically hold a fund for 2 to 3 months. Russell www.selectinvestor.com