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).

Treasury bond prices change from day to day. Since last Friday there has been a drop in the bond market because there were no economic news releases on Monday, Tuesday and Wednesday, and better-than-expected earnings from Citigroup, GM, Johnson & Johnson and others kept the stock market strong. (Oct. 18)

Asset allocation between stocks, bonds and cash is determined by your goals and the length of time when you want your money back. No matter what your age is, you cannot have 100 percent of one asset class in an investment portfolio. Asset allocation minimizes many types of risks. (Oct. 10)

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. This week’s barrage of earnings releases brought mixed results which proved turbulent for the markets. (Oct. 18)

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. The perceived need for a rate cut by the FOMC has lessened slightly. (Oct. 18)

A down month in September has a high probability that institutions will sell investments to offset gains/losses. This means that October, which is notoriously a down month for the market, may see further declines. I believe we are near the bottom of the downtrend, but not quite there. (Oct. 7)

The major trend of the market is pointing for a lower stock market near term, I believe this will be a short to intermediate term event. A reversal of trend is often found on heavy panic selling and then panic buying, whereby most downtrends are reversed. Long term investors should look to accumulate stocks at fair prices. (Oct. 7)

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)