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

To: Dennis who wrote (3739)	5/24/2001 10:06:44 PM
From: Julius Wong	Read Replies (1) \| Respond to of 4916

Dennis: Usually the banks loan money to the big cap companies at lower interest rates than the small cap companies. Say 8% to big cap, 10% to small cap. Now Uncle Al lowered interest rates, and provided very large money supply. The banks probably loan money to big cap at 6%, and to small cap at 7%. The 3% drop (from 10% to 7%) in interest rate helps the small cap companies to increase profits more than the big cap companies (2% drop in interest rate change). Julius