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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

454.0. "Need advise on Health Care Fund." by SALEM::SHAH_J () Mon Apr 19 1993 18:08

    
    
    	Could someone please tell me what's happening with the 
    Financial Fund's Health Science portfolio?  It had gone up by
    about 90% in 1991 after the Gulf war and has lost about 30% of 
    its original value in 1992.  Will it ever bounce back should 
    President Clinton's Universal Health Care Plan goes thru the 
    Congress?  
    
    	I need some sincere advise. I had made some investments in
    1991 and now the per share value is far below what I had paid.
    I know it is an aggressive fund. Should I move my money out to 
    some other fund or wait?  
    
    	I have some money in the Financial's Industrial Income Fund.  
    It is not doing bad... Will it be a better fund than its Health 
    Science portfolio for NOW?

    Thanks,
    Jay
T.RTitleUserPersonal
Name		DateLines
454.1AOSG::GILLETTBut that trick never works!Tue Apr 20 1993 14:3931
Industrial Income has a diversified portfolio right?  Health Sciences
sounds like a sector fund...correct?

Sector Funds tend to be much more volatile and subject to strong
moves up or down than their more diversified bretheren.  Further,
regardless of how you feel about Clinton's health care ideas,
the mere fact that government is meddling has scared the entire
industry in a fundamental way.  

Does Health Sciences hold drug makers like Amgen?  The druggies
have gotten a terrible wholloping lately.  If your fund is heavily
invested in one of these areas, that could explain a large part
of its recent performance.

Sector Funds are neat, and I like them for a variety of reasons (in
fact, I own one right now and will probably buy another soon),
but you really need to understand completely what they hold, why
they hold it, what their strategy is, and what the sector is all 
about and what makes it tick.  All in all, unless you're willing
to be diligent, they may not be the best possible investment 
vehicle.

Industrial Income will probably do better ("better" here may simply
mean "lose less" however) than a health-care/sciences sector fund,
at least over the short term.  However, many folks believe that
a lot of quality got burned with the trash when the health care
stocks got hit, so you may also see an upturn once Clinton's plan
(and Congresses intentions) are more clear.

My $0.02 worth...
./chris
454.2Good time to buy Health care stocks and FundsSPESHR::SHAHThu Apr 22 1993 11:599
    Jayesh,
    
    All health care funds and stocks are down because of Health Reform
    coming. I feel they hit bottom. I think this is very good time to buy
    more. I don't have health care fund but I have a quite a few health
    stocks and I am buying more. I am buying stocks like Glaxo, Merck,
    Bristol Myers, and I will buy pretty soon US Surgical.
    
    Bharat Shah