Accrued interest is interest that has accumulated between the most recent interest payment and the sale date of the bond. When a bond is sold, the buyer pays the seller the bond's price plus accrued interest. The buyer will get this interest back plus the interest he has earned when the bond makes its next interest payment. (Nov. 27)

To make sure that you get 2003 off to a good start you should consider doing some year end planning. Talk to your employer to make sure you will be making the maximum retirement plan contributions since the limits will go up in 2003. If you are over 50 you can make additional contributions. (Nov. 27)

VIPSX is a TIPS (Treasury Inflation-Protected Securities) intermediate-term bond fund, and it is riding the wave of TIPS's immense popularity. VIPSX is up a whopping 13.6percent this year alone & ranks in the top 1 percent in its category.  Such big returns aren't sustainable so sell sometime soon. TIPS aren't recommended for a taxable account. (Nov. 21)

Avoid long-term bonds, even for long-term investing, because their share prices fluctuate wildly when interest rates rise and fall as they inevitably will. Between September 1998 and December 1999, Vanguard's Long-Term Bond Index fund shares plunged over 15%. Instead, pick no-load (no sales charge) intermediate-term or short-term bond funds with low expenses. (Nov. 21)

Investing is a long-term process. Trying to profit in the markets over short periods of time increases the risk factor significantly. People with funds available for a short period of time would be better off going to a bank and buying a certificate of deposit or opening a savings account. (Nov. 29)

This Holiday shortened trading week brought stronger than expected economic news and had equities prices solidly higher. For people investing for appreciation, well-diversified equity funds with experienced managers may perform well. Always understand what you invest in and why. Ask how current economic trends will effect your holdings. (Nov. 29)

We are encountering resistance near the September highs. I believe the markets should retrace some of it's gains, and then continue higher late in the year. Normally, I would be going to a neutral bias in anticipation of a pullback, but since the challenge ends next month I will go a little more aggressive. (Nov. 4)

The outlook for the market is better. We have had some impressive gains over the last few weeks. The market sprinted out of the gates, but we must remember the race is a marathon, so I would look for the market to take a breather around here. The timing and length of a pullback is debatable. I would also remind investors that not much has changed in the macro economy. (Nov. 4)

CSCO shares were upgraded by several analysts this week. COST is faring slightly better than the rest of the retail sector as consumers seek value. The company plans to add 28-30 new warehouses in the U.S. and Canada. GE cut its earnings outlook for the quarter and for next year in light of large losses in its insurance unit. Still, the guidance was better than expected and the shares have firmed. (Nov. 29)

The Dow posted eight consecutive weeks of positive returns. Stocks have demonstrated remarkable resilience despite improving but lackluster economic conditions. Consumer optimism, and therefor spending, remains a bright spot.  Since the stock market tends to be a leading indicator, it seems to be signaling a recovery by mid-2003. I remain optimistic and fully invested. (Nov. 29)

This relatively quick rise in market values in the last few weeks have obviously hurt the performance of my bond fund and market short fund selection. Despite this, we feel still feel these holdings will continue to do well as a defensive investment. (Nov. 2)

There is still more downside risk in the overall market. We're in a trading range in which active traders would probably do better than the buy and hold investor. Obviously, the limited monthly trading restrictions in this contest prevents active trading. If this is the bottom, then a retest of the recent rise will be needed. There will be ample opportunities for long investors to buy in at lower levels. (Nov. 2)