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Dear Reader,

May 8, 2012 - Vol 6 No 19   

 

Economic Blogger Mike "Mish" Shedlock's wife has ALS, better known as Lou Gehrig's disease. Mish is not asking for anything for his family, but has sponsored a raffle for ALS research. Please consider buying one or more tickets or making a small donation to the 

Les Turner ALS Foundation

  

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Star bullet Richard Bernstein:
         US Assets will Outperform over the Next Decade
           By Robert Huebscher

Prior to founding the firm that now bears his name, Richard Bernstein was the chief investment strategist at Merrill Lynch & Co.  In this interview, he discusses why he expects US assets - both equities and fixed income - to be the outperformers among global markets over the next decade. 


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Star bullet Volatility: The "Godfather" Asset Class
          Sponsored Content by American Century Investments

Michael Corleone's famous line in Godfather II, "Keep your friends close, but your enemies closer," can be applied to volatility. Often thought of as the investing enemy, volatility can play an important role in the financial professional's arsenal as a portfolio diversifier. In this article, American Century Investments discusses the opportunities and challenges associated with incorporating volatility as a hedge in multi-asset portfolios.


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Star bullet  Annuities versus Systematic Withdrawals:
           Understanding Tax Effects

           By Joe Tomlinson 

Given the complexity of most annuities, analysis of them typically only considers pre-tax results.  But taxes matter. As we will see, tax impacts vary by the specific type of annuity you're considering, and will make the difference between annuities being cost effective or a drain on cash flow. 


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Star bullet Q2 Outlook: "Sell in May" May Not Work This Year
          Sponsored Content by OppenheimerFunds 
 

Chief Economist Jerry Webman explains why he believes the U.S. economic recovery is real and CIO Art Steinmetz talks about how stocks are as cheap compared to bonds as they have been in decades.  

 

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Star bullet Mohamed El-Erian and David McWilliams:
          The Key to Resolving Europe's Crisis
           By Robert Huebscher

 

Dealing with a crisis requires three things, according to Jack Welch, General Electric's former CEO. Define your reality - not as you would like it to be, but as it is. Do something about it. Then, third, acknowledge that the crisis wasn't half as difficult as you thought it was.  Germany is the key player in Europe's crisis today, and it is still struggling to accurately define its reality.  

 

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Star bullet Three Qualities that Define Top Performers 
           By Dan Richards 

 

Regardless of market conditions or the business environment, some advisors inevitably expand their business at the expense of their peers.  A new research report identified three common traits among those who were able to show sustained growth in their practices.

 
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Star bullet Why the Best Conductors Sent Us Home Early
           By Justin Locke 

 

As a professional speaker, I focus on leadership and management.  But I have a major handicap to overcome: the conventional wisdom that a core goal of leadership is to motivate greater effort.

 

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Star bullet The Adjusted Gold/XAU Ratio as an Indicator of Forward Returns for Gold Stocks - An Update
           By Georg Vrba, P.E.

 

The latest data have a clear message for investors: gold stocks are attractively priced.  

 

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Star bullet Can You Make Great Sushi Out of Crappy Fish?
           By Mariko Gordon 

 

What does it take for a tiny sushi restaurant in Tokyo to earn a Michelin three-star rating?  The answer offers insights for stock-picking (really!).  Here are seven suggestions for determining which analysts are most worthy of your attention.  

 

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Star bullet Letter to the Editor

 

A reader responds to Bob Veres' article, How to Respond to the Bachus-McCarthy Bill, which appeared last week.    

 

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Star bullet Highlights from Market Commentaries

Here are the top three commentaries from last week.
 

Release the Kraken

 

The problem for the stock market is that the 13-year journey of underperforming T-bills - with wicked collapses and break-even recoveries - is most probably not over.

Tags: Equities US

 

Release the Kraken by John P. Hussman of Hussman Funds

 

Tuesday Never Comes

 

The current acceleration of credit via central bank policies will likely produce a positive rate of real economic growth this year for most developed countries, but the structural distortions brought about by zero bound interest rates will limit that growth and induce serious risks in future years. Gradually higher rates of inflation should be the result of QE policies and zero bound yields. Focus on securities with shorter durations bonds with maturities in the 5-year range and stocks paying dividends that offer 3%4% yields. Real assets/commodities should occupy an increasing percentage.

Tags: Equities US Monetary Policy

 

Tuesday Never Comes by Bill Gross of PIMCO

 

Newsflash: The Dividend Aristocrats Found The Lost Decade

 

Volatility can only hurt you if you react to it. And you should not react to it unless there is a real fundamental deterioration with the fundamentals of the businesses you own. If fundamentals are strong and price falls, then buy more if you can, or hold if you cant buy more. The very best companies can remain profitable even during our most severe economic challenges. Consequently, when you can find these companies on sale, regardless of what caused it, I believe you should consider optimistically investing in them. It sure beats taking losses that you dont need to absorb.

Tags: US Investment Themes

 

Newsflash: The Dividend Aristocrats Found The Lost Decade by Chuck Carnevale of F.A.S.T. Graphs

 
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