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

To: Angler who wrote (366)	11/6/1997 2:35:00 AM
From: cbstock	Read Replies (1) \| Respond to of 4916

Hi Angler, IMHO the buy and hold strategy is the right one for most funds. However, the sector funds generally have a much higner volitality than perhaps Growth and Income or Value. Many folks that I have exchanged ideas with are very concerned when they see a big sell off on a specific sector. If you have looked at the charts long term, you would see past times where the funds you identified down for very extended periods. The approach that buying and selling takes, requires following the funds just like stocks and buying into strength on the up swing and and selling to weakness on the down swing, much the same as a protective moving stop, perserving an ammount of profit..... 20 trades at 5% =100%. If you have followed the sectors long then you have seen the cyclical nature of them all. My approach is to stay invested and try to stay in the up swing of the strong sectors. Bio and Energy Services have been good lately but there will come a time when they will tank and may stay there for many months or years. I do not trade these funds all the time but this approach usually allows the preseveration of a large amount of our profits befor a big sell off. I agree, it takes some amount of work. If you have a lot of time, such as for your kids then by all means buy and hold but I am retired and had rather get a profit , protect that profit, than to be underwater for years....Thanks for the interchange... Regards cbstock