John J. Edwards III chatted on AOL MarketTalk on Monday, April 10. AOL's MarketTalk is hosted by Sage Online (Keyword: PF Live).

OnlineHost:

Live from New York, NY, please welcome

John Edwards

, assistant managing editor,

TheStreet.com

. John can answer questions about the latest market-moving news.

OnlineHost:

John does

not

offer individual stock commentaries or recommendations. Visit Keyword: TheStreet.

SageMoola:

Good afternoon and welcome to MarketTalk, Mr. Edwards!

TSCNYJohnE:

Thanks for having me. Great to be here!

Question:

Which business model seems to be providing superior growth: the content/advertising model or the transaction-based model?

TSCNYJohnE:

Tough call there. I think we're moving a bit away from being able to bet broadly on those two groups, getting closer to needing to go company by company.

TSCNYJohnE:

Players on both sides of that divide are getting beaten up as investors realize how hard it would be for all of the overvalued Net names to meet the market's lofty expectations.

TSCNYJohnE:

Broadly, it does look like the content/advertising side has a bit of an edge right now.

Question:

I'm 49 years old, and 11 years away from retirement, I'm in a government thrift savings plan at work, along with a pension plan. I have about $35,000 to invest, what mutual funds can you recommend to me. My thrift plan is based on the S&P.

TSCNYJohnE:

Without promoting specific funds, I can recommend taking a diversified approach with the money you have available.

TSCNYJohnE:

You don't want to lean as much toward higher-risk funds as a much younger person would, but at the same time, you don't want to close yourself off completely from growth.

TSCNYJohnE:

I would suggest putting most of that amount into a fairly balanced fund, if not an index fund. You should also look into a somewhat more aggressive, growth- oriented fund for a portion of your money, and don't forget to invest in a stable bond fund as well for guaranteed income. And, most importantly, don't move just on my advice.

TSCNYJohnE:

I'm a journalist, not a financial adviser. In addition to checking out

TheStreet.com

's excellent, free personal-finance coverage, consult a professional.

Question:

Why do you think the Nasdaq is down so much today?

TSCNYJohnE:

It's more of the volatility we've been seeing in recent weeks and will continue to see going forward. The market is of two minds on the Nasdaq. On the one hand, people continue to want the kind of explosive growth that only comes from high-tech companies whose full prospects are yet unknown.

TSCNYJohnE:

On the other, investors know most high-tech stocks are greatly overvalued, so holders tend to be skittish in times like these and want to avoid getting washed out in a selloff.

TSCNYJohnE:

That's the push and pull at work today, with the selling concentrated in the volatile semiconductor sector.

Question:

Do you recommend utility or growth internet stock?

TSCNYJohnE:

Utilities can be solid performers, and many of them are exploring new areas that make them less like the stodgy old electricity and gas providers of old and more like New Economy infrastructure plays. Still, you're not going to get galloping growth there.

TSCNYJohnE:

I also think the days of truly massive growth for the Net sector are over. We're in a consolidation phase now, in which we're moving closer and closer to the day when there are no "Internet" companies at all, just retailers, media outlets, etc., that have operations on the Net like everyone else.

TSCNYJohnE:

You need to pick your spots carefully in the Net sector now, watching closely for real cash on the books and real market position instead of pie-in-the-sky hopes.

SageMoola:

Thank you very much for joining us today, Mr. Edwards!

TSCNYJohnE:

Thanks for having me. Great chatting with you, and I'll see you at

TheStreet.com

! By the way, if you need any last-minute tax help, our tax columnist,

Tracy Byrnes

, is an expert on the tax issues facing frequent traders. Her stuff is free; check it out!

OnlineHost:

We have been speaking with John Edwards, assistant managing editor,

TheStreet.com

.