Vern Hayden Chats on AOL, June 14 - TheStreet

Vern Hayden chatted on AOL MarketTalk on Wednesday, June 14. AOL's MarketTalk is hosted by Sage Online (Keyword: PF Live).

Comment:

Live from Westport, CT, please welcome

Vern Hayden

, contributing editor,

TheStreet.com.

Vern can answer questions about personal finance and investing for the future.

Sage Lion:

It's great to have you visit with us in MarketTalk today Vern!

Vern Hayden 01:

Hi, good to be with you. I'll do my best to answer your questions. My specialty is Mutual Funds.

Question:

Do you feel that the market will have a better-than-expected second-quarter earnings season, or have all of the recent interest-rate hikes cut too deeply into corporate profits?

Vern Hayden 01:

I think there will be decent corporate earnings; several companies will be coming off the cost of Y2K and that should help drop more money into the bottom line for several companies.

Question:

I am interested in buying BRCM and ERICY for my portfolio. Yes? No?

Vern Hayden 01:

I am not a stock guy, I'm a mutual fund guy so I can't really give a lot of information on individual stocks.

Vern Hayden 01:

I think Kevin Landis is the best there is in picking tech stocks. I like his Firsthand Tech Value fund the most.

Question:

Does the Strong Enterprise Fund run by Drew Cupps a solid investment for a retirement fund?

Vern Hayden 01:

I prefer a fund like Selected American Value run by Chris Davis and Ken Feinberg.

Question:

Dave Brady seems to have great insight. What do you think of the Stein Roe young investor fund?

Vern Hayden 01:

I think it has a decent track record, but I prefer other funds for long-term growth. The Young Investor Fund has excellent educational material for first-time investors or young folks just getting started.

Question:

What is your thought on MNITX?

Vern Hayden 01:

There again, I prefer Kevin Landis at Firsthand for the tech area. And, for aggressive growth, I like the Spectra Fund. That is David Alger's fund.

Question:

With all the managers shifting around at Janus, do you think they can sustain the high performance levels we have come to expect of them?

Vern Hayden 01:

The thing that has affected the Janus performance is the correction that has taken place in technology and in general the growth style. They are very heavy in technology and so their funds are bound to suffer I don't believe the manager shifting has caused any dilution in performance.

Question:

Vern: Is it a good time to buy a small-cap fund (Berger fund)?

Vern Hayden 01:

I think it's a good time to have somewhere between 10% and 20% of a portfolio in small company funds. I do not use the Berger funds at the moment because of manager changes. However, Jerry Tracey, the new Chief Investment Officer, is a superb stock picker.

Question:

What is your opinion of Janus Twenty and their Global Tech funds?

Vern Hayden 01:

Scott Schoezel, the manager of Janus 20, is the guy that brought technology to the Janus family. I think he is a good manager, although his fund has languished because of its focus on tech. He got caught in the downdraft but should be OK over time. I prefer Claire Hayes of Janus Olympus.

Question:

What do think of the new value line wireless fund and Gabelli global tele fund?

Vern Hayden 01:

I prefer not to use a new fund with an unproven track record so I'd not recommend the Value Line fund at this date. With respect to the Gabelli Global Telecommunications fund, it is a well-managed fund by Mark Gabelli; it is just that the whole sector has languished for several months. If you have the patience I'd hang in there.

Question:

My employer may include the Janus Aspen Fund in my 403B, currently I'm Oppenheimer Aggressive Growth. Your opinion?

Vern Hayden 01:

I prefer the Janus Aspen Funds over Oppenheimer Aggressive Growth.

Question:

What fund does John Bogle, Jr. presently manage?

Vern Hayden 01:

I'm not sure on this one. I'll have to check it out.

Question:

Your opinion of Vanguard Growth & Income fund?

Vern Hayden 01:

It has been a good solid fund over time with medium-size risk. And decent returns for longer-term goals, it is fine.

Question:

Your opinion on Pioneer II and Templeton Growth? Any good?

Vern Hayden 01:

Well-managed within their style, but their style has been out for a while. I would not add new money but probably hold existing money if you already had it in there and had the patience, wait it out.

Question:

Fidelity select electronics? A fund to buy?

Vern Hayden 01:

Great fund if you can handle the volatility. If you can, I'd stay with it, it has a stellar track record.

Question:

How many funds should a 60-year-old have and what kind do you like, Vanguard Total Stock Mkt?

Vern Hayden 01:

That would be John Bogle's answer, you only need that one fund. My answer is that depending on your needs and circumstances, and amounts of money, I'd have somewhere between four and six funds.

Question:

What about White Oak Growth?

Vern Hayden 01:

Fantastic fund managed by Jim Oeschlager. Superb manager, has 24 stocks, about 60% in technology. The balance divided between the financial and health care sectors. It is one of my favorite funds.

Question:

Is the Internet sector a good place to invest for the long term, or was the mania in this sector over the last couple of years just another investment fad?

Vern Hayden 01:

I don't like the risk of Internet companies because of the very slim margins and in some cases, no margins. Whatever amount of money you allocate to gambling is what you might consider for Internet stocks.

Question:

How about Robert Turner and his funds -- i.e., tech, top 20, etc.?

Vern Hayden 01:

Turner is a good manager. As long as you can live with the volatility you'd be in good hands.

Sage Lion:

Thank you for joining us today Vern! Any parting shots?

Vern Hayden 01:

Thanks a lot. Sorry I couldn't answer stock questions, but I live within the Mutual Fund arena and hopefully I've helped out. Have a great night.