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,
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.