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)

I figured my investor wanted to take some risk and didn't want investments he could do himself -- CDs, Treasury bills, for example -- and asked me to identify which investments weren't sinking along with the entire stock market. If he wanted very little risk, I would have picked an ultra-short bond fund (Fidelity, PIMCO). (Dec. 6)

Raw, quantitative performance shouldn't be your only criterion in picking a financial adviser. Pick one who returns your phone calls promptly, one who has earned a professional designation and isn't, in reality, a salesperson striving to maximize his/her employer's profits at your expense. (Dec. 6)

This week saw my picks declining along with the overall equity markets. Friday's release of the unemployment figures contained a higher rate than was expected. The economic debate centers on its current strength and sustainability of the recovery. There is a marked uncertainty in the markets in the short term. (Dec. 6)

While awaiting the replacements for the positions of Treasury Secretary and Economic Advisor, who were asked to resign on Friday, I am more bullish on the long-term economic environment. I am staying away from equities that are interest rate sensitive and those that have exposure to the impact of the United Airlines problem. (Dec. 6)

Equities hit a technical double top. I would be getting defensive as the market takes a breather before it tries to take out and hold that 9000 DJIA mark. Technology led a quick rise, but I'd rather wait for technology than jump on the bandwagon. Market sentiment looks good for the most part. Let's see if buyers come in and show support at lower levels. (Dec. 6)

There is more than $6 trillion in cash equivalents. The rate cuts by the Fed will probably start to shove investors back into the market in 2003 as dwindling safe havens start to mature. The market seems like it wants to go higher next year. The economy still has much work before I get bullish. Good investment management will be a key factor to investment success. (Dec. 6)

CSCO is winning sales from companies like SBC Communications for its network equipment. COST same store sales growth was lower than expected at 2 percent. GE may be part of the $2 billion financing to keep United Airlines aloft. KSOIX bought back its covered calls and had an increase in net asset value. TMEN has not made any announcements, but I remain optimistic it will receive its first contract soon. (Dec. 6)

After eight weeks of gains, a pull-back is not only expected but welcome. Market activity was orderly and was most likely profit-taking. The shake-up of White House financial chiefs came amid generally weak economic data. The administration may start to focus on the economy ahead of the 2004 election. In any case, I remain cautiously optimistic. (Dec. 6)

I have added two stocks that currently present good value. Hawaiian Electric is a good value with its steady earnings and its 6% dividend. Lennar, a homebuilder that is benefitting greatly from the recent boom in residential homes, and at 8 times earnings, it is undervalued. Because of the continued risk in the overall market, we continue to recommend holding bonds to balance the risk. (Dec. 6)

In our actual client portfolios we buy and sell stock and bond positions whenever the opportunity arises and not on a specific buy date once a month as in this contest. My clients have realized positive returns during this contest period which greatly differs from the returns of this contest which are limited by the numerous constraints. (Dec. 6)