DISCLAIMER: THE FOLLOWING "Cost of Freedom Recap" CONTAINS STRONG OPINIONS WHICH ARE NOT A REFLECTION OF THE OPINIONS OF FOX NEWS AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE WHEN MAKING PERSONAL INVESTMENT DECISIONS. IT IS FOX NEWS' POLICY THAT CONTRIBUTORS DISCLOSE POSITIONS THEY HOLD IN STOCKS THEY DISCUSS, THOUGH POSITIONS MAY CHANGE. READERS OF "Cost of Freedom Recap" MUST TAKE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS.

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Bulls & Bears

Brenda was joined by: Gary B. Smith, RealMoney.com columnist; Tobin Smith, founder and chairman of ChangeWave Research; Scott Bleier, president of HybridInvestors.com; Bob Olstein, president of the Olstein Funds; and Adam Lashinsky, senior writer at Fortune magazine.

Trading Pit

What happened? The Dow was making a move straight to 10,000. 

But in November — which is usually one of the best months for stocks — we’re going the other direction, down 10/15 days this month.

Tobin said fear is keeping us from Dow 10K. We’ve seen banks and embassies blowing up and a mutual fund scandal. Also, investors have profits for the first time in 3 years Tobin thinks when we get over the fear, we’ll see Dow 10,000 and he believes this will happen by the end of December.

Gary B. charted the Dow for the past six months. He said it’s been in an uptrend channel since June and explained this means if the Dow falls below 9600, it’s in big trouble. He thinks Dow 10K is unlikely by the end of the year, but said we’ll see our normal rally after Thanksgiving.

Bob believes that large cap stocks have gone too far too fast and that it is going to take a while for the Dow to hit 10,000. He thinks investors should look to mid and small cap stocks, because those are the ones that are undervalued and will make investors money. 

Adam thinks all the good economic news that has come out is great, but the market reacted to that good news 3-5 months ago. He said every fund manager that he has talked to is glad to be on the plus side for the year, so they are playing a “prevent defense” for the rest of 2003.

Scott advised investors to buy stocks when they dip and said we should be prepared for more of a dip. The Dow hasn’t hit 10,000 yet due to the mutual fund scandal, more fears of terrorism, and investors’ desire to take profits.

Stock X-Change

Scott, Tobin and Bob looked at the stocks of the companies that run the mutual funds caught up in the scandal. (These are the stocks of the companies that own the funds, not the actual funds.) 

First the group looked at Janus Capital Group (JNS). Its funds are accused of late trading and market timing for select clients. Bob likes Janus because investors are negative on the stock and that pessimism has produced the right price. He thinks the stock is undervalued and is worth about $20. (Janus closed on Friday at $13.95.) Tobin has been short Janus for the last couple of years, but said that if Bob took it over, he’d buy the stock. But until that happens, he doesn’t want anything to do with Janus. Scott said pessimism is not enough of a reason to buy the stock. He also doesn’t think Janus manages its funds well. 

Next, the group examined Alliance Capital Management (AC). Alliance runs more than 100 mutual funds. Its president and other top officials resigned when the scandal hit. Scott wouldn’t own the stock at this price, but if it gets its act together, he thinks it can come back. Tobin said Alliance owned huge amounts of Enron and MCI, and has owned every other horrible stock. He advised to stay away from it. Bob agreed with Toby and also thinks it’s best to avoid this stock.  (Alliance closed on Friday at $30.75.)

Lastly, the group looked at Marsh & McLennan (MMC), which runs Putnam — one of the fund families named early and often in this scandal. Tobin said Marsh & McLennan is a very large company and that 18% of its revenue comes from Putnam. He thinks Putnam will take it on the chin, but its other businesses are on an up tick and this can make its earnings rise. Bob said Marsh & McLennan is a superb insurance brokerage company. And even though Putnam is a tarnished jewel, it will survive. He’d like the stock at a cheaper price. Scott thinks Putnam is finished.  He said Marsh & McLennan is good, but the scandal will hurt its future earnings.  (Marsh & McLennan closed on Friday at $43.48.)    

Chartman

Christmas is coming early this year! Gary B. played Santa Claus and picked two stocks he thinks will make you enough money by Christmas to pay for all your presents!

Gary B. first chose Freddie Mac (FRE). His chart showed that after a nice summer run, it has pulled back to its current uptrend line. Gary said it’s at a great place to buy and should be up 10% by Christmas. (Freddie Mac closed on Friday at $55.67.) Adam said this is a scandal stock and it needs to restore all credibility. These problems make it hard to value. He thinks that Freddie Mac won’t be a buy until 2004.

Next, Gary picked Southwest Airlines (LUV). His chart showed that after a monster run in the second half of this year, Southwest has pulled back into perfect buying position. He thinks it will also gain 10% by Christmas. (Southwest closed on Friday at $17.40.)  Adam said Southwest is not volatile enough for a fast profit. Also, the big airlines, which he thinks have more upside, are coming after Southwest with their own smaller airlines. Finally, and unfortunately, the threat of terror always is a factor.

Predictions

Adam's Prediction
CBS's Reagan and "Jacko" debacles hurt Viacom (VIAb) stock
 
Tobin's Prediction
December to remember for Nasdaq; breaks 2000 by Christmas

Scott's Prediction
DoubleClick (DCLK) clicks!  Up 30% by spring!

Bob's Prediction
Flaws of index investing revealed; sell the Vanguard 500 (VFINX)

Gary B's Prediction
Gold spikes on new wave of terror; Newmont Mining (NEM) up 30% by June

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Cavuto on Business

Neil Cavuto was joined by Gregg Hymowitz, founder of Entrust Capital; Jim Rogers, president of JimRogers.com; Cheri Jacobus, Republican Strategist; Tom Dorsey, President of Dorsey, Wright & Associates; Mike Norman, founder of Economic Contrarian Update; and Wendy Murphy, former prosecutor and founder of Victim Advocacy and Research Group.

Neil Cavuto: Is President Bush about to go from wall street hero to wall street villain? The stock market has rewarded the President with an historic rally for his tax cuts and for his tough stance on terror. But is he about to wipe out all all those gains with his tough stance on bras and bathrobes? I'm talking about a looming trade war. The White House is trying to protect American manufacturing jobs by limiting the amount of bras and other fabrics we buy from China. So Jim, is it getting nasty?

Jim Rogers: Of course it's getting nasty. This isn't good for the country. It's not good for the market. And it's not good for the economy. We did it with steel and it cost us more jobs than we saved. And no one has ever won a trade war. We will lose as much as the other people.

Gregg Hymowitz: I don't think there's going to be a full-blown trade war. Free trade is a great thing in theory. But in reality, when it's about your jobs and when it's about the 300,000 jobs that have been lost in the textile industry. That's a real problem.

Mike Norman: The fact of the matter is, the Chinese just don't play fair. Out of the sixteen million vehicles Detroit and the "big three" manufactures every year, only about 25,000 vehicles go to China. And that's because there's 100% tariffs on imported vehicles.

Neil Cavuto: Here's what worries me that this is going to start causing problems for this President because he touts himself as a free trader but again and again he appears to be anything but.

Cheri Jacobus: I don't think anyone expects a president to be 100% free trader if it means jobs in the United States being lost. If this is perceived as an elbow jab to the Chinese, that's going to be just fine as well. It's also a speed bump to correct an inequity and imbalance of trade with China. I don't think this is going to hurt the President at all. And there is certainly not going to be a trade war.

Mike Norman: Jim, when you said there were jobs lost in steel you were wrong. It did lose but it was at a slower rate than it lost in the year before the inception of the tariffs.

Jim Rogers: The people who use steel lost more jobs than the steel industry.

Gregg Hymowitz: The problem is it's nice to have free trade but you also have to balance competition. There are more unemployed people in China than the entire labor force in the United States. And they will do everything they can to get them employed. Even if it's How do we tell people in the United States, 'just re-train yourself.' That's not a good enough answer when it's your job.

Jim Rogers: If you raise prices here by putting on tariffs, that makes us less competitive and we lose more jobs.

Mike Norman: Jim, the Japanese and the Chinese have essentially been doing that for decades and you say these are the countries that we should emulate. We're not allowed to do it, but they are?

Gregg Hymowitz: The problem this President faces and we face as a country is how do we manage the problem in the short-term. We're basically talking about tariffs on 5% of a $10 billion textile industry. You have to manage this carefully otherwise you're saying to hundreds of thousands of people to just retrain themselves.

Neil Cavuto: Cheri, what do you make of the notion that where there's smoke, there's fire. That it starts with steel and could now effect things like bras and bathrobes.

Cheri Jacobus: No, I don't think there is any link. The steel tariffs were something that was designed to help the employment situation here in the United States in the steel industry and it's been working. Our economy needs to come back and employment is the last lagging part of this.

Jim Rogers: The Europeans have already said they're going to put retaliatory tariffs on our goods in 2004. Nobody wins trade wars.

Cheri Jacobus: The President hasn't announced what he's going to do and I'm sure there's a compromise in there somewhere. The retaliatory measures could be lessened.

Jim Rogers: Mike, the steel stocks have not done anything during this whole period of time.

Mike Norman: It's a three year program. They went down and came back as the effects of the tariffs started to take hold. If we run it through for the three years, they're going to be a lot higher.

Neil Cavuto: Here's a point Jim has made: when you start protecting industries, ultimately the markets don't like that. I'm not saying what's justified or not, but in periods when we do that markets don't do well.

Gregg Hymowitz: I think you saw some of that in the dollar declining slightly. I think if the market believed this would be a full-blown out trade war it would react very negatively. I don't believe that's what's going to happen.

More for Your Money: Turning Turkey Stocks Into Stock Treasures!

Neil Cavuto: Forget buying turkey for Thanksgiving! Someone here says you should be buying the stock market "turkeys" to get more for your money. If one year ago, you bought the five worst performing Dow stocks, today you'd have 30% more money. That's well over twice the return of the Dow's overall performance. Tom, is this a good investment strategy?

Tom Dorsey: This makes a lot of sense. It's something you or anyone can do once a year. And the idea is you want to do this with Dow Jones stocks, not tech stocks. If I did this now, I would buy Eastman Kodak (EK), AT&T (T), Merck (MRK), SBC Comm. (SBC), and Johnson & Johnson (JNJ). But you want to wait a couple of weeks before you buy them, because a lot of these stocks that have done poorly for the year get tax selling in December. So they're prices will be even lower then.

Jim Rogers: Tom's right, a very wise policy is to wait for tax selling, people dump stocks that have been beaten down already and you buy them.

Neil Cavuto: When is that tax selling period?

Jim Rogers: Right now.

Neil Cavuto: What would you do Jim?

Jim Rogers: I own SBC Comm. (SBC) and I noticed SBC was on Tom's list. I own it and I think the telephone industry has been beaten down and ready for a rally. It's not going to be a great growth stock ever again but I like it.

Gregg Hymowitz: I don't think you should ever in buy a stock blindly. You should at least know the fundamentals.

Tom Dorsey: If you go back and hold those bottom 5 for one year, you're probably in the top 10% of money managers in the country.

Neil Cavuto: What are you doing Mike?

Mike Norman: I like DuPont (DD). I don't own it, buy DuPont is basically a commodity play and and a weaker dollar should work in favor of DuPont.

Gregg Hymowitz: One stock that hasn't done that well this year is Microsoft (MSFT). It trades at roughly 22 times next year's earnings. I do not own it but clearly it's one of the greatest companies in the world.

Tom Dorsey: It's burnt out though.

Gregg Hymowitz: I don't get it. You just said to buy burnt out stocks.

Tom Dorsey: That's not one of them though. I think Microsoft is a behemoth like General Electric and there's no where for it to go.

Head to Head: Are Wall Street ' Sheriffs' Helping or Hurting Investors?

Neil Cavuto:  Are Wall Street sheriffs (SEC, FBI, States Attorney Generals) targeting each other more than the crooked executives and mutual fund managers?

Wendy Murphy: There's nothing better for the public's confidence in the market than to hear the truth. The public becomes cynical when bad things are happening to our money and we don't even know about it. I don't know a hedge fund from a hedgehog but I do have money invested and I depend on the S.E.C. to do the right thing by my money.

Neil Cavuto: Well then you better talk to Chris Dodd, a democrat who said this week, "We can't have you," referring to Donaldson, the head of the S.E.C. "and Spitzer screaming at each other in public form everyday."

Wendy Murphy: This isn't about them screaming at each other everyday. It's about them telling the truth. And holding the government accountable.

Neil Cavuto: Then you must be arguing that Spitzer is telling the truth more than the S.E.C. Would you feel the same way if the political parties were reversed?

Wendy Murphy: This has nothing to do with politics. The only point I'm making is if someone responsible for my money with regulatory authority isn't doing the right thing, I want to hear about it. At least now it's out there and we're having a conversation.

Neil Cavuto: It's like the FBI and CIA arguing about withholding information before September 11th. Their job is to protect me. These regulatory agencies and the New York Attorney General have an obligation to share information and to get along and not worry about turf wars.

Wendy Murphy: This is not about information sharing. There's no question that sharing of information, especially when it comes down to national security is a good thing.

Neil Cavuto: This is about information sharing. It most certainly is. If you were going after a Putnam Funds, you would want to know where the abuses were and not territorially hold on to it and shout names at the other. Share the information and quit fighting.

Wendy Murphy: I disagree. I'd rather have people screaming at each and hear that my government agency responsible for the well-being of my investment is not doing its job.

Neil Cavuto: So you'd feel the same way if it was the S.E.C. going after New York's attorney general.

Wendy Murphy: Absolutely. For me, this isn't about politics.

Neil Cavuto: I agree with you. It shouldn't be about politics but I think it's blurred the lines and become about politics.

Wendy Murphy: The S.E.C. is far more interested in protecting corporate America. And I'm not part of corporate America so perhaps my goals are better met with the Attorney General.

FOX on the Spot

Tom: JetBlue soars again. JetBlue will be added to the Nasdaq 100 Index, which often gives the stock a boost because money managers of index funds have to buy it. Buy JBLU now!

Mike: Lookout Jim! Prices tank for raw materials and raw materials stocks due to a slowdown in China's growth.

Jim: Political kickbacks kick off new scandal. Business "Soft money" donations to politicians will be exposed as bribes.

Cheri: Plug is pulled on "liberal" radio network. AnShell Media L.L.C, will be kaput less than one year after it goes on the air. They have already had a choppy start, plus, there are already a great many liberal media outlets, including NPR to compete with.

Gregg: Trade war is averted and stocks rally.

Neil Cavuto: Trade tensions, from steel to Chinese made bras, is getting out of control. If we're not careful, it could roil the markets the last few weeks of year.

Bulls & Bears | Cavuto on Business | Forbes on Fox | Cashin' In

Forbes on Fox

Our panelists give you the scoop on all the inside business information before you hear it anywhere else in The Informer segment:

David Asman: Chinese tech stocks have been going crazy. They’ve been doubling, tripling, sometimes more, in less than a year. Dennis, you've got three China stocks: China Telecom (CHA), China Mobile (CHL), and PetroChina (PTR). Why are they so hot?

Dennis Kneale, Managing Editor: I think they’re really hot, and they’re really safe. Now they’ve only gone up, oh, 50-100%, all of them, since January. But here’s the thing: Pound for pound, when you compare them against US tech companies, they’re like half the price of US tech companies. My favorite of these three is China Mobile. Think about this: Cellular carrier, it has 150 million subscribers, more than any other company in the world. China is now the world’s biggest cellular market. China is now the world’s biggest PC market. Anybody who doesn’t invest there is either a coward or a fool.

David Asman: All right, Matt. You have a couple of stocks as well?

Matt Schifrin, Senior Editor: Absolutely. I’m with Dennis on this. I have one called UTStarcom (UTSI) which is a wireless infrastructure stock in China.

David Asman: Wireless infrastructure. It means they set up the poles?

Matt Schifrin: Absolutely. And it sells for 17 times earnings, next year’s earnings.Another stock, if you like Yahoo! (YHOO), an Internet portal, you’ll like NetEase.com (NTES).

David Asman: Look at how much they have gone up. UTStarcom has gone up 116% and NetEase.com has gone up 468% since their 52-week lows. An incredible rise, but you say it’s not too late?

Matt Schifrin: It’s actually pulled back. It’s a good buy. And NetEase.com as well, it’s an Internet portal, it sells for 26 times earnings, versus Yahoo! which is 76 times earnings.

David Asman: OK, we have to move it around. Now, Chana, you think maybe another place in Asia would be a place to put your money?

Chana Schoenberger, Staff Writer: Japan. We recently had a big Asian telecom exec come in, and he told us that he thinks China is just…it’s not getting there. Japan, on the other hand, has cleaned up its banking, and the Nikkei is doing really well. Now, recently it’s gone down because of telecom fears, but I wanted to mention the iShares MSCI Japan Index (EWJ), which is an ETF traded fund that I own.

David Asman: It’s an index that sort of tracks the Nikkei average.

Chana Schoenberger: It mirrors the Nikkei average, and it’s biggest holdings are Toyota (TM) and Canon (CAJ) and NTT DoCoMo (DCM).

David Asman: OK, and we do have to emphasize that you own that stock. Jim, you’re not bullish on Chinese stocks either, right?

Jim Michaels, Editorial Vice President: Well, I don’t know about bullish, and I don’t know whether I’m a coward or a fool, but I am a chicken. And when I see stocks double in less than a year, when I see the retail investors starting to come in at the end of a boom, that makes me very nervous. This is treacherous territory. If you think we have phony bookkeeping in this country, wait until you take a look at what’s happening in China.

David Asman: But you do have a suggestion?

Jim Michaels: My suggestion is that if you’re going to go into this territory; and it’s damned interesting territory; go with a guide. I like some of these closed-end investment companies. I happen to own Templeton Dragon Fund (TDF), you can actually buy it at a slight discount from book value, I’m not sure I’d go heavy in it at this price, but that’s the way I’d go in China.

Makers & Breakers

Nokia (NOK)

Susan Breakefield Fulton, Co-founder of Fulton, Breakefield, Broenniman: MAKER

We like Nokia because they’ve done the right things in a terrible market. They’ve continued to gain market share, they’re up to 38% of their market. They have no debt. They’ve come out with a wide variety of phone systems, a lot for the younger generation which loves the phones.

David Asman: And they’re trading at about $18 now (Friday’s close: $17.79), how high do you think they could go?

Susan Breakefield Fulton: We think $20.

Jim Michaels: BREAKER

I know the Japanese are running around, taking pictures with their cell phones, Nokia is supposedly the leader in that. But look, it’s a great little company but let’s look beyond the glamour. They make a commodity product. Within a couple of years anything they do, the Japanese, the Koreans, the Chinese are going to undercut them. 80% of their business comes from cell phones, it’s not a business with a great future.

Elizabeth MacDonald: BREAKER

I’m a breaker on this stock. Yeah, they’re the number one maker, right? They’re in an overcrowded sector though, and I see revenues coming in flat and profits kind of going into negative territory, on average for the last 3-5 years. I think they’re in a really tight spot right now. We’ll just have to wait and see.

Susan Breakefield Fulton: No question that they’re in a really tight spot, but they’re doing the right things with it. They’re gaining market share. They’re going into the two-way walkie-talkie against Nortel (NT).

DENTSPLY (XRAY)

Susan Breakefield Fulton: MAKER

DENTSPLY is fascinating because teeth become very important when you get older or when you get richer. And the American population is getting older, so that market’s increasing. And the overseas population is getting richer. So DENTSPLY actually sells three times the supplies of any other company.

David Asman: And they make more than false teeth, we should say. All the fillings and everything else. Now it’s trading at about $43 (Friday’s close: $43.08), how high do you think it will go?

Susan Breakefield Fulton: We think $50.

Elizabeth MacDonald: MAKER

This is a great stock, I’m a maker on this. You’re absolutely right. As the baby boomers age, they’re going to need more of the products that this company sells. Half of their sales come from international regions. I think this is a solid stock, I see positives across the board. It’s in their numbers too.

Jim Michaels: BREAKER

I love my dentist, but when I looked at the bills, I think I want to invest in a piece of this. With DENTSPLY you’re getting a piece of the dental business, which can only grow.

Bulls & Bears | Cavuto on Business | Forbes on Fox | Cashin' In

Cashin' In

Stock Smarts

Where is he? Saddam Hussein is still at large and behind many of the deadly attacks on our troops in Iraq.

Also still at large: that elusive 10,000 mark on the Dow. The last time it closed above 10,000 was May 24, 2002.

The daily attacks are weighing on the entire nation – including Wall Street. How much would change if Saddam was captured or killed?

Fox Military Analyst Major Bob Bevelacqua, who has just returned from a trip to Iraq, says that a lot would change if we capture Saddam. Until Saddam is captured, Bevelacqua says Iraqis will be reluctant to come to the Coalition Provisional Authority (CPA) with information about Saddam, because they believe he can come back to power (especially if a Democrat wins the White House and decides to pull out of Iraq). And if that happens, Saddam will hold those people accountable. He says all the reward money we have on Saddam’s head will do us no good because there have been too many problems already with the CPA in terms of trust. Capturing Saddam would go a long way toward a lasting democracy in Iraq.  But he doesn’t think we are close to getting Saddam yet.

Jonas Max Ferris of Maxfunds.com says he’s very scared by the points the Major makes, and he thinks investors are also showing signs of trepidation. He says the market has priced in many of the good things that have been happening, but getting Saddam is key for the market to get above 10,000. There is fear and uncertainty since Saddam is still out there, and the market is all about signs; Saddam’s capture would be a sign that we are wining the war on terror, and we need that sign for confidence to return to the market.

Dagen McDowell of Fox Business says the market cares most about what is happening here in America, and not what is happening in Iraq. She says we can get to 10,000 on the Dow without capturing Saddam, especially if “Santa Claus” comes to town (meaning a lot of shopping during this holiday season).

Charles Payne of Wall Street Strategies say what we need is stability. It would great to go “one or two weeks without terrorist attacks,” especially on American soldiers. He doesn’t think that any good news has been factored into the market, but does think that terrorism weighs on stocks, so there is a negative atmosphere out there. He does see 10,000 as being an important technical level, and does point out that when the market dropped after 9/11, it only took until the spring for the Dow to get back to 10,000.

Jonathan Hoenig of Capitalistpig Asset Management says that Dow 10,000 is a “large number”, but it’s just a number, and he doesn’t think it matters whether we get to it by capturing Saddam or otherwise. He’s not betting on the Dow because he says he sees trends that are larger than the Dow right now, particularly the weak dollar.

Wayne Rogers of Wayne Rogers & Co says that Saddam isn’t as meaningful as we think. (He mentions Izzat Ibraham as being the main planner of current terrorist attacks in Iraq.) He says Saddam is only a symbol, and he believes there are going to be terrorist attacks with or without Saddam, so his capture isn’t crucial to the market.

Be$t Bets!
Happy Holiday Stock
$

Shop ‘til we drop! It’s what most of us will be doing from now until the end of December. So why not own the stocks that are set to ring in the holiday spirit with some profits!

Jonathan says
Grupo Elektra (EKT)
Friday's close (11-21-03): $20.35

Jonathan says the Mexican-based electronics retailer has stores throughout that country and Latin America. He believes the company will benefit during the holiday season. This again is playing off Jonathan’s strategy of looking outside the U.S for strong foreign plays. Jonathan owns shares in EKT. Charles thinks this is a pretty good stock that should do well in the holiday season. Wayne likes this play (he notes that the company also owns a bank).

Charles says
Circuit City (CC)
Friday's close (11-22-03): $12.40

Charles prefers to look at domestic retailers, and thinks that Circuit City, the “poor cousin” to Best Buy, has made up for some past mistakes and will continue to be a success this year. Wayne likes this stock. Jonathan also thinks this is a strong stock.

Wayne says
Best Buy (BBY)
Friday's close (11-21-03): $58.24

Wayne thinks that this company will give you the best pop in the coming holiday shopping season. He says the company has a good number of retail outlets in operation throughout the country, which will help it do well. Jonathan agrees this is a strong stock.

Stock Of The Week!

What’s the stock to buy on Monday morning?

Jonathan says it’s the Aberdeeb Asia-Pacific Income Fund (FAX). He says it’s going up this week. Jonathan owns shares in FAX and has long recommended the stock. He says that right now the biggest trend is the weak U.S. dollar, and this foreign bond fund will benefit directly from this weakness. Jonas disagrees. He says that this stock has become a “herd” investment that people are starting to flock to, and that is a sign that its run is over. Wayne likes this play, and reminds us that Jonathan recommended a stock called Goldcorp (GG) that Wayne bought and still owns, and has made a killing on it. Why is this important? Because Jonas didn’t like that play either!  Wayne thinks the same thing can happen with FAX (in the short-term). Dagen thinks there are better ways to play the weak dollar. She says FAX is too risky.

Cashin’ In Challenge

We took a quick look at the standings in the $10,000 “Cashin’ In Challenge”. To find out who is ahead, check out the website at: www.foxnews.comchallenge.

MoneyMail

Charles, Jonathan and Wayne answered some of your questions.

Question #1: “My new broker says I should sell all my mutual funds and buy stocks or ETFs due to lower costs. What do you say?”

Charles thinks this is good advice; he has never been a fan of mutual funds, calling them a “prevent defense” investment (playing not to lose, as opposed to playing to win). He says you should own something to make money, not to be diverse. ETFs are a much better way to go.

Question #2: “Berkshire Hathaway (BRKb) has yielded fabulous performance, but has under performed the market. Why?

Wayne has always liked Berkshire Hathaway. He says now might not be the best time to buy it, but on pullbacks, you should buy it because it is an asset-building company. Jonathan thinks that Berkshire Hathaway is a good buy right now, and, he points out, if you own the “B” shares, you can go to the annual meeting, which he calls the “Woodstock of capitalism”.

Question #3: “I bought Corning (GLW) at $1.50? It's trading over $10 now. Should I sell?”

Jonathan says most people worry too much about the profits, and not enough about losses. If the stock has grown to be a big part of your portfolio, then take some money off the table. If it hasn’t, then put in a stop-loss order and let the market take you out. Charles thinks there is room to grow in this one. Wayne agrees with both Charles and Jonathan.

Question #4: “Did I miss the run on Cisco (CSCO)? Is it a good buy, or is it 'good-bye'?”

Wayne likes Cisco (he owns the stock). He’s not too sure about its immediate upside potential, but still thinks it is a great company. Charles thinks it’s a hold, but that there is upside left here. Jonathan feels that Cisco isn’t the place for the next big move. He’s not “anti-Cisco”, but it’s not his choice for new money.