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

To: Julius Wong who wrote (2832)	8/15/2000 10:32:44 PM
From: Angler	Respond to of 4916

WOW-OW - an owwhee! Knocked down and stamped on and then runover. Angler

To: Julius Wong who wrote (2832)	8/18/2000 10:52:15 PM
From: rkf	Respond to of 4916

Julius, thanks for the info. Fortunately this fund is in my IRA. Lesson learned - NEVER get into a fund based on one year's return. Kent

To: Julius Wong who wrote (2832)	8/20/2000 8:59:55 PM
From: Angler	Read Replies (1) \| Respond to of 4916

Julius: Regarding distributions in this and the last quarter: What concerns me mostly with many funds having had a less than an optimum year - when we come down to the last quarter will the fund mgrs. start taking capital gains in a big way offsetting losses that they have already suffered in order to redress their portfolios favorably for the New Year before the tax loss season. It could constitute insult to injury to wind up with large taxable short term (or long) capital gains distributions on a fund that has dropped significantly in value outside of a retirement or tax exempt investment. I am not looking solely at sector funds but am reminded of what happened to some portfolios after the Y2K scare was over and the market began a downturn instead of an upturn early this year (when many of us thought we had a new breath of life). 1999 income tax hits were bitter hard on fund principals that were suddenly deteriorating 20 to 30%+ There's not much one can do to protect himself against such unless he is in an index or bond fund it seems to me. This could be another year to reckon with? I have noted some funds declare dividends in irregular patterns and dates. Many of these institutions run with a herd mentality not of which the least is face saving. Any thoughts? Angler