RealMoney Radio Mailbag: Wall Street Talk

Editor's note: The following are questions received from listeners of "RealMoney Radio." To send Cramer a question about topics from his radio show, click here. Listen to Cramer's latest radio show by clicking here.


What is a "product cycle?"

-- Brian from North Carolina

Jim Cramer: A product cycle is pretty much what it sounds like - a period of time in which a new product will sell - presumably which will in turn help drive up a company's stock price through higher revenues and earnings. For example, many investors feel the Vista product cycle will push up Microsoft's ( MSFT)stock price. However, I am not so sure and am selling Microsoft, which I own for my charitable trust, Action Alerts PLUS.


Do you think the fees on mutual funds are too high?

-- James

Jim Cramer: If a mutual fund is strongly outperforming its benchmarks after fees are taken into account, I am not terribly concerned with the fees themselves. To get quality you often have to pay up. But, when a fund is underperforming there is no excuse for high fees. A big fund can easily generate tens in millions in practically guaranteed revenues every year for a fund company, but I would like to see more pay-for-performance fee structures in the industry.


Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by clicking here.

At the time of publication, Cramer was long Microsoft.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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