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Today on Your Money.....


Gregg Brewer

Every Wednesday, we are joined by Gregg Brewer, executive director of research at ValueLine for the Mutual Fund Of The Week. Each week, Gregg tells us of a notable Fund Of The Week, and explains how ValueLine evaluates it. The fact sheet for the fund of the week is available for you to download on our homepage and is posted there within an hour after the show each Monday.

This week Gregg made Fidelity Select Consumer Staples (FDFAX) the "Mutual Fund of the Week," noting that the fund has the potential to stand up during times when the economy and market are a bit sour. Brewer noted that the fund is a bit hard to judge because it was focused on food and agriculture until late in 2006; with its current focus on consumer staples -- the kinds of stocks that most observers consider recession-proof because people need to eat, wash clothes and such -- the fund is a useful tool, allowing holders to tilt their portfolio a bit towards these dependable issues in a market that is unreliable.

 

Next, in to clear up your "Technical Difficulties"...

Leo Leydon

It's Leo Leydon from Financial Focus Advisory services. "Technical Difficulties" who helps to explain some of the sometimes-complex terms and approaches applied by chartists and others who track market movements to determine what happens next. This week, Leo discussed "gap analysis" in his "Technical Difficulties" segment. Leydon, noted that gaps occur in candlestick charting, when a stock jumps up and starts a new day well above its high point from the previous day. Using Google stock as an example, Leydon noted that the stock had a big void -- from $450 to $529 per share -- where it didn't trade; when investors see this kind of gap, Leydon said they should view the first new trading price ($529 in the case of Google) as a new support level. The stock would be expected to stay above that level going forward; if it breaks support, however, it is likely to go all the way down, through the gap, to its old trading range.

You can reach Leo directly through his website HERE.

 

The Big Interview today was with

Felix Dennis

Felix Dennis, founder of Maxim magazine and author of "How to Get Rich,"

How to Get Rich

who said that people who want serious wealth -- and he defined being rich as having a minimum of $30 million -- need to be willing to make mistakes, and need to keep their focus on the money, rather than some passion. He noted that entrepreneurship is most likely to lead to extreme wealth, but said that the world is littered with people who went bankrupt pursuing their great idea, and that it takes more than having passion for a concept to hit it big.

 

Finally, we played Hold It or Fold It with:

Steven McKee

Steven McKee, editor of the No-Load Mutual Fund Selections & Timing newsletter, who said that in times when the market gets nervous, the top-performing mutual funds tend to come from the more vanilla parts of the fund world. As such, McKee said that investors should be gravitating towards growth-and-income and balanced funds, which give management some flexibility to keep powder dry in cash or bonds, allowing for some protection at times when being fully invested can actually drag down performance.

Tickers mentioned on today's show were:

VALIX, TWEIX, DODBX, FBALX, JAGIX, OAKBX, LOMMX, LCORX, FGBLX, JABAX, TIVFX, WBIGX, FIGRX, VWO, GLD, SLV and FDFAX.

 

 

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