Life Situation	Financial Data
Pam, 43 Josh, 45 3 Children, ages 16, 14 and 11	Monthly income	$4,900
	Living expenses	$4,450
	Assets	$262,700
	Liabilities	$84,600
	Emergency Fund	$5,000

As previously noted, the Brocks have some of their investment portfolio in conservative stocks. These equities have had very slow growth while regularly paying a small dividend.

Pam and Josh have received several emails recently with suggestions about various biotechnology, retailing, and environmental companies. The investment advisers believe that these industries would provide an opportunity for strong long-term financial gains.

In recent years, the Brocks have made extensive use of mutual funds in their investment portfolio. However, they are concerned that their selection of the funds may not be coordinated. With over 9,200 different mutual funds available, this financial marketplace is confusing.

The Brocks start the evaluation process by connecting various types of mutual funds to their investments goals. Next, they assess the past performance and management of the funds. Finally, they talk with various financial advisers and other investors to gather additional information.

Q1. According to Pam, "We both know we should have started our investment program sooner, but we always seemed to have 'emergencies' that took what extra money we had." To what extent should the Brocks invest in stocks as a major portion of their investment portfolio?