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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (13369)	11/26/2001 11:46:17 AM
From: Bob Rudd	Respond to of 78473

<<However, some investors buy sector funds in niches like biotech, gold, etc. without having a clue what drives the price movement there. That would be comparable to a car company going into the sewing machine business>> Assuming you're not referring to sector traders who are TA driven, I'd say it's ill advised to select sectors with no understanding of underlying fundamentals, but perhaps a good ideal if the investor has some understanding of the sector, but not engough to follow and select individual companies...I own funds in Biotech for this reason. The voluem of info in the biotech sector is overwhelming...like drinking from a firehose. But the potential in this sector over the coming twenty years is large. [Good book for investors: 'The Biotech Bible']. I would have to disagree about the comparability of an investor buying a sector fund and Ford buying a company...the fund can be sold at the end of any trading day with little transaction cost...exit from a failed merger is usually very expensive.