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The past weekend brought the news that you can now pay $149 to get your child’s DNA tested to determine whether you’ve got a future Olympic athlete or NFL Hall-of-Famer on your hands ... or a first class couch potato. The focus of the genetic test is the ACTN3 gene, which instructs the body to produce a protein, alpha-actinin-3, that is found specifically in fast-twitch muscles ... the muscles most valuable in power and speed sports. In brief, the makeup of the gene helps determine whether a person might be better suited for sports that require power and strength, or endurance, or general activity ... or none of the above.

Every now and again I like to do a question and answer issue of Cabot Wealth Advisory--we editors at Cabot spend hours each week answering subscriber questions, so we have a large pool to choose from. I think it’s a good idea to share some of these questions with everyone, as much can be learned from a good question and a good answer.

I’ve taken a few weeks off from the series I’m writing to help explain Cabot’s publications, but today I’m going to discuss Cabot Top Ten Report.

Throughout the 13 years he was steering the Magellan Fund, Peter Lynch became known for his philosophy that you should invest in what you know. Buying what you know has long since become a bit of Gospel among a large segment of investors--after all, if it worked for Peter Lynch, it should work for you. But it can taken too far, such as when you invest in a company without checking out its management and chart.

At the beginning of August, Cabot Benjamin Graham Value Letter featured four buy recommendations that collectively have outperformed the stock market indexes by a noticeable margin. I’m featuring one of the stocks here because it’s still clearly undervalued.

Two weeks ago I wrote here about the massive buildup of both government and individual debt in last 70 years. I noted that this bubble of debt appeared to have popped in the past year. And I speculated that a very long (decades-long) period of debt shrinkage and balance sheet improvement might be in the cards. Then I asked for your opinions.

On Thursday night, I saw the movie, “I.O.U.S.A.,” which focuses on the national deficit. It has been hailed as “An Inconvenient Truth,” without a celebrity-type lead like Al Gore, but I found it equally interesting. While it’s not a “sexy” topic (as one man in the film kept reminding everyone), unlike global warming, it’s something we can all agree on: Our nation is in debt up to its ears and way past that.

Last week I wrote about the government’s $700 bailout plan and asked for your opinions. I got an incredible response, both by email and on the blog. I really appreciate hearing what you had to say and it helped me to sort out the whole mess in my head. Today instead of writing a column, I’m just going to reprint many of your letters. Some of you were outraged about the plan, while others urged its passing and still others came up with their own plans for the $700 billion.

Since 2004, value investors from across the country have converged on the Value Investing Congress, and this year our very own J. Royden Ward, editor of Cabot Benjamin Graham Value Letter, is going to attend. It’s taking place in New York City on October 6 and 7 (with a pre-conference workshop on October 5) and will be attended by value investors and money managers from around the world seeking to enhance their performance.

While the Opening Ceremony of the Beijing Olympics wowed many, revelations about the accuracy of what viewers saw has somewhat soured the event. Questions about the ages of the girls on the Chinese gymnastics team have also clouded the athletes’ gold medal win. Fairness has always been an issue at the Olympics, but this year, the host country is attempting to prove itself to the world. It’s all about deception and perception at these Games.

We know that every bear market is followed by a profit-making bull market, and today I’m watching very carefully as the old bear market that very likely ended on July 15, is replaced by the next bull market. What you don’t want to do as the new bull market gets under way is be stuck holding the winners of the last bull market. You want to be holding the winners of the new bull market ... and the best way to do that is to keep an eye on the new highs list.

Today’s investment suggestion comes from a recent issue of Cabot Market Letter. It’s Fuel Systems Solutions (FSYS). With 400 dealers in 60 countries, Fuel Systems Solutions sells the hardware-pressure regulators, fuel injectors, control valves and electronic controls-that allow regular engines to run on alternative gases.

My stock idea is, very simply, the #1 stock on my watch list right now. The company sports most of the characteristics of past leaders--fast sales and earnings growth, healthy profit margins, a unique position in a mass market, and a huge opportunity for growth going forward.

You’re living through a historic stock market event, one that will be dissected in texts and articles for as long as people study the market. Congratulations! If your grandchildren ever get interested in the stock market and its history, you have a first-class, first-hand war story to tell them. It’s a tale of greed and fear--the constant poles of stock market emotion--plus a clash of opinions about the proper role of government in the market. It’s a classic case of good news and bad news, and there’s been plenty of each.

Solar power is one of my top investing concepts for the years ahead. I think solar (along with other alternative energy sources) will gain increasing market share in the years ahead. As costs of fossil fuels rise, the still-high costs of solar power look less prohibitive, especially when various tax credits are factored in. The increase in manufactured volumes means costs are coming down, particularly for the manufacturers that don’t use silicon.

Oil billionaire T. Boone Pickens recently dropped a campaign to push for the adoption of wind power on a large scale because he’s in the process of building the word’s largest wind farm in the Taxes panhandle. When the oil barons start going Green, you’d better take notice. Today I’m going to evaluate some stocks that might benefit from this endeavor.

One of the most important investing lessons—letting winners run and cutting losses short—is often the downfall of investors. Many disobey this rule, leaving them with a portfolio of losing stocks. Novatel Wireless (a losing stock that had to be cut) and First Solar (a winning stock that’s been allowed to run) are used to illustrate this lesson.

I’m a big believer in heroes. They remind us that something can be built from nothing, that victory can be snatched from the jaws of defeat, that we should aim high, and that we should never give up. One of my heroes, John Marks Templeton, passed away last week. John was a pure value investor, with a very long-term perspective and an appreciation of global markets.

The publication that would become Cabot China & Emerging Markets Report was first published in March 2004 under the name Cabot’s China Investor. The editors at Cabot saw the huge growth potential in China and it has paid off in the years since. In 2006, the name was changed to Cabot China & Emerging Markets Report and the publication expanded its focus to include other strong emerging markets.

Soaring gasoline prices. A weak job market. A higher grocery bill. A still-slumping housing market. All of these add up to one thing: lower consumer confidence. Even Warren Buffett thinks we are in a recession. The Consumer Confidence Index dropped to 57.2 in May, down from 62.8 in April. I don’t know about you, but I certainly didn’t need a report to tell me that consumer confidence is low.