The big will survive the hard times. Microsoft controls about 80 percent of the market for productivity applications (12-month target 59). Pfizer is the strongest competitor in the pharmaceutical industry (12-month target 59). Wal Mart is the world's largest retailer and a premier low-cost provider (12-month target 67). For diversification, Russell Mid Cap Index and Russell Small Cap Index (Sept. 24).

Invest all funds into the Frank Russell multiple manager funds. The key to obtaining positive long-term results while minimizing risk is diversification. Frank Russell & Co. offers a multi-asset, multistyle and multimanager investment approach. This careful blending of money managers and assets is the core of Russell's sophisticated, long-term investment strategy (Sept. 24).

I chose U.S. Treasury notes and cash primarily because of the short time frame of the game. Investments in the stock market are made to meet long-term goals. Short-term money should be kept in money market, certificate of deposits and short-term treasuries. Three months is short-term. (Sept. 26)

Long-term investing requires planning up front. Knowing a person's goals, including their time requirements, is important. Their age, sources of income, current and future expenses are also important. Once a comprehensive financial picture is established, then we can work out a diversified portfolio which includes stocks, bonds and cash. (Sept. 26)

My portfolio has plunged because the price of Novastar (a mortgage REIT) has plunged (despite record new home sales in August). The drop is because of "intense insider selling" that began two days after the start of this game, which doesn't allow stop/limit selling. Novastar's dividend is high -- nearly 13 percent based on our purchase price. (Oct. 3)

I would “dovetail” the windfall with investor’s overall financial situation after a quality financial planning discussion. Clipper Fund and Dodge & Cox Stock fund (using dollar cost averaging). Buy now: Corrections Corp. of America (private prisons with 90% occupancy!).  Buy on price dips: Johnson & Johnson. (Sept. 12)

This exercise demonstrates the inherent risk and dramatic limitation of investing short term. For my hypothetical clients in this scenario, the $25,000 was to be invested in equities and/or funds with a possible gain/loss of capital. With current interest rates, mixed economic indicators and a pending military conflict, equities will remain volatile. (Oct. 4)

Long-term strategy is dependent upon various factors, which are unique to the client. Age, income, fiscal status are but a few of the factors to be addressed. A time horizon of five or more years would make a dollar cost averaging strategy into equities/funds advantageous. Another Federal Reserve rate cut may stimulate the equity markets. (Oct. 4)

We cannot control the market, so I have selected a mix of asset classes from large to small capitalized equities, government and corporate bonds. All of the equity investment styles are categorized as a value style. Corporate and Government bonds can help smooth a portfolio that is overexposed to risk. Government bonds are especially good in reflationary economies. (Sept. 26)

Although we cannot properly do an asset allocation model due to the restrictions of this article, a diversified basket of investments can help to reduce the risk that are inherent in the equities market. Since we started on Sept.12 versus the close on Sept. 26, the portfolio has lost less money than the overall market (DJIA: -4.56%, S&P: -3.6% vs. Our Portfolio: -2.29%). (Sept. 26)

Cisco Systems, Costco Wholesale and General Electric are poised to rise as the economy recovers. ThermoEnergy Corp., a small pollution-control company in Arkansas, is close to commercializing several patents, including one that converts sewage sludge into fuel. It's highly speculative. Kelmore Strategy Fund generates income from covered-call writing, a strategy not normally available to average investors. (Sept. 12)

Any investment should consider a client's individual circumstances. An investment portfolio should be balanced and offer adequate diversity. The investment ideas presented here are for example only, may be considered speculative and therefor may not be suitable for some investors. Colin Watanabe owns each of these securities in accounts in which he has an interest. (Sept. 12)

Based on continued weak economic and corporate earnings information, we continue to recommend defensive investments. Currently, treasury bonds may be somewhat overvalued after the recent 3 year run up. Adding selected corporate and mortgage back bonds and TIPS to your portfolio would be prudent as there continues to be a flight to quality. (Oct. 3)

This soon to be three-year bear market has definitely created a stock picker's market. Many index and similarly managed funds have experienced significant losses. Smaller more concentrated actively managed portfolios tend to do much better during these periods. This has created some good entry prices on certain stocks in our actual managed portfolios. (Oct. 3)