Investing: What to Do About Inflation and What Not to Do
Matthew Bandyk

American consumers have had plenty of things to worry about over the past year, but inflation has not been one of them. From the end of 2008 to the end of 2009, the consumer price index rose 2.7 percent, much lower than the 4.1 percent growth in 2007. But many Americans are worried that prices will rebound -- big time -- in 2010. Here's why

Kick-Start a Portfolio With Just a Little Cash
Ben Baden

When times are tough, it can be daunting to come up with enough cash to start -- or continue -- investing. But even a relatively small amount of seed money can pay off big in the long run. Here's how to get going with $1,000 or less

Exchange Traded Funds Offer Low-Cost Diversification
Andrew Leckey

More than $1 trillion is invested worldwide in exchange-traded funds and those assets continue to grow as new ETFs are introduced and investors discover the concept. ETFs replicate indexes or sectors with a goal of low-cost diversification. ETFs are traded on an exchange so you can buy and sell during market hours, unlike a mutual fund in which you trade shares at the end of the day.

Fresh Look at Socially Responsible Mutual Funds
Rob Silverblatt

Most socially responsible mutual funds are born of a desire to help the environment, slow the spread of violence, or boycott certain practices. Parnassus Workplace (PARWX), on the other hand, sprang from the stocks of publicly traded companies that made Fortune's list of the '100 Best Companies to Work For'

Technology Opens Doors for Investors
Rob Silverblatt

In an era in which the Internet is steadily uprooting traditional business models, David-versus-Goliath stories are becoming increasingly common. Meanwhile, the traditional investment and fund players have responded with advances of their own. Here's a look at some technologies that have emerged in this climate

Make the Most of Your Mutual Fund Money
Ben Baden

For most investors, the past 10 years have been sobering. Speculation drove growth stocks sky-high culminating in the tech-bubble burst. Later on, once trusted financials companies came to the brink of collapse. Times have changed. In turn, so should your investing habits. Here are some tips on becoming a smarter, more frugal mutual fund investor.

Will Bank Stocks Soar or Dive in 2010
Andrew Leckey

Bank stocks rose like a phoenix from the financial ashes over the past year or so, lifting the results of the funds that owned them as well. It would seem logical that an economic recovery would loft them even higher in 2010. The problem is that nagging questions about government intervention, housing and consumer credit may weigh them down.

Fiduciary Standard for Giving Investment Advice
Humberto Cruz

Consumer groups are pushing for a 'fiduciary standard' for brokers and anyone who gives investment advice. Fiduciary standard means putting clients' interests first, as registered investment advisers are legally required to do. Brokers generally are held to a less strict 'suitability' standard, meaning recommendations must be suitable to the client but don't have to be the best for them.

Growth Vs. Value Investing: 2010 Promises to be An Exciting Year
Andrew Leckey

The battle of growth versus value investing rages on in 2010. These distinct investment personalities move in cycles, one dominating for a period before being overtaken by the other. And then it starts all over again. Here's a look at potential growth and value investments.

TIPS Attracting More Investors As Hedge Against Inflation
Andrew Leckey

Some investors are increasingly deciding to put money in a safe investment backed by the full faith and trust of the U.S. government: Treasury Inflation-Protected Securities, known as TIPS, that provide protection against inflation.

Global Economic Risk Spooking Investors
Matthew Bandyk

Despite federal spending consuming 27.2 percent of GDP, the United States maintains a Aaa rating. But you can't say the same about many countries in both the developed and developing world where continued fallout from the economic crisis is hurting their credit ratings. As a result, investors have viewed the economic situations in these countries as increasingly risky bets.

Gold Remains Volatile But Worth Modest Gleam in Portfolio
Andrew Leckey

The concept 'good as gold' is polished to a fine shine from time to time by negative factors such as volatile currencies, weak financial markets, bank failures and instability due to political, economic and financial unrest. Historically considered a safe haven, gold's performance in recent years has benefitted from all those forms of global financial pestilence

Economic Gale Winds Have Made Investing Tough
Andrew Leckey

Some bold calls made during the market plummet of 2008 proved highly successful and an examination of the logic behind them can be helpful for the future.

Tech Trauma Should Ease in 2010 As Demand Climbs
Andrew Leckey

Tech trauma is a modern investor ailment. While the patient is aware that technology stocks are symbolic of the near- and long-term promise of the economy, their erratic movement can spike blood pressure beyond normal limits. The prescription for 2010 therefore requires tech stocks compatible with needs of a recovering business world

Are International Investments Still Good Plays
Andrew Leckey

There is still promise abroad in 2010, yet don't get carried away. Dynamic years are often been followed by dismal ones in the quixotic world investment mix. It increasingly makes sense to include international stocks or mutual funds as part of your personal portfolio, but you should do so in moderation.

Google Remains Powerful Brand
Andrew Leckey

Google continues to innovate and invest in new businesses as it battles strong competitors. Its powerful brand name and top-notch technical staff help keep it ahead of the curve. Having loads of cash doesn't hurt either.

New Economic, Market Trends Merit New Approach to Once Shunned Investments
Andrew Leckey

Investors seeking industries they can count on in 2010 will have to think outside the box. New economic and market trends require a reexamination of previously-avoided groups, such as regional banks, insurers, shipping companies, utilities, consumer staples firms and auto component companies. All could take a turn for the better in the coming year.

Timeless Investment Principles More Valuable Than Stock Picks
Humberto Cruz

Rather than waste your time with useless lists, I'll emphasize timeless investment principles for 2010 and beyond. But I can hear you now. You also want specifics, not just concepts. I'll give you specifics, too.

Make Your Financial Resolutions
Andrew Leckey

Negatives will linger into 2010, making it a year to tread lightly but carry a big emergency account. Market volatility is certain to continue. The most significant potential boost to stocks could come from an improved jobs picture that makes all investors breathe a sigh of relief.

How Long Will It Take to Recover Your Investment Losses
Kirk Shinkle

It has been well over a year since the worst crisis in decades rocked Wall Street, sending nearly every class of financial assets -- from stocks to bonds to real estate -- into a tailspin. Markets have managed to claw back from some of those substantial losses, but nearly everyone is still feeling poorer than just a few years ago. So where do average investors stand today

The 10 Strangest Mutual Funds
Rob Silverblatt

When mutual funds step off the beaten path, there's no telling what will happen. In the past, for example, oddball funds have fought the war on terror, tried to prop up the sky, and fantasized about swinging a presidential election. And although those particular funds failed, others have stepped in to carry the torch and preserve a long and proud tradition of eccentric investing styles. Here are the 10 quirkiest funds we could find

Experts Offer Advice on Investing in 2010
Andrew Leckey

How would you invest $10,000 in the coming year? We pose that question annually to a panel of investment experts. With hopes for an improved economy, the panel peers into its investment crystal ball for 2010

Investor Protection Act Would Shake Up Financial Adviser Duties
Mark Miller

There really are just two types of financial advisers: those who -- by law -- work for their clients, and those who really don't. The legal litmus test is called fiduciary duty, which means that the adviser is obligated to put the best interest of the client ahead of all else. That distinction is at the heart of an important debate heating up in Congress over a set of financial services industry reforms

Mid-Cap Stocks Have Reigned in 2009
Andrew Leckey

Mid-cap stocks have been anything but middling in 2009. They've been the sweet spot for investors still leery of the large-cap stocks that burned them in the recent past. Too many big-name companies also seem to be offering only downsizing as a strategy these days.

'Free Lunch' Investment Seminars Often End Up Costing You Money
Humberto Cruz

For six months, I attended every 'investment seminar' offering a free lunch that I found advertised in the newspaper or in postcards I got in the mail. I soon realized I would learn little about investing but a lot about high-pressure sales tactics for high-commission products.

Smart Year-End Tax Moves
Andrew Leckey

It's your move: Year-end tax moves can improve your position for the coming tax season and upcoming year. They're especially important because some steps must be taken before the year runs out. Keeping the potential for tax hikes in 2010 and 2011 in the back of your mind, tend to your tax business in the here and now

IPO Activity Is Up, But Examine Each Offering Carefully
Andrew Leckey

In a year of other IPO gains by familiar names such as Hyatt Hotels (H) and Vitamin Shoppe (VSI), the average first-day IPO price "pop" has been 7 percent and the average overall return 10 percent. But don't get the impression we've returned to the wild-and-crazy IPO markets of the past.

Holidays May Be Merry for Some Retailers
Andrew Leckey

A holiday season of high unemployment and nervous consumers would seem to dictate coal in the stockings of all retailers and their shareholders, yet some have reason to be jolly. It's a matter of being in the right place at the right time despite a weak economy.

For Shareholders, Cost-Cutting Can Cut Both Ways
Andrew Leckey

Companies have cut costs to the bone in this brutal recession. Lost jobs, shuttered facilities and difficult mergers are commonplace throughout corporate America. The question for investors is whether all that slashing actually improved efficiency at the firms whose stock they own or instead rendered them too emaciated to participate in an economic recovery.

Are Traditional Stock Percentage Formulas Still Valid
Andrew Leckey

The basic mid-range formula for personal portfolios traditionally has been 60 percent stocks and 40 percent bonds, based on a belief this provides the ability to keep up with inflation with some cushion as well. Percentages are adjusted according to an individual's risk preference, the types of stocks and bonds and the investment time frame. The question is whether the trauma of last year dictates that stock percentage should shrink or disappear

Online Brokers Drawing More Investors
Andrew Leckey

Blind-faith investing is dead in 2009. Market volatility has driven home to Americans the reality that they are ultimately responsible for their own investments. It also prompted backlash against giant brokerage firms that exacted sizable commissions but gave clients little to show for their money but losses last year.

Socially Conscious Investing Picks up Steam
Andrew Leckey

Socially conscious investing lets people put their money where their ideals are. While all investments took their lumps over the past year, mutual funds that employ environmental, social and corporate-governance screens have been gaining serious investor attention

Muriel 'Mickey' Siebert Calls for Hedge Fund Regulation
Kathy M. Kristof

Muriel Siebert is fighting for more regulation on Wall Street -- a suggestion rarely made by industry insiders. She contends that regulation is desperately needed to reduce market manipulation, restore investor confidence and eliminate systemic risks that have become so great that they threaten the entire economy.

Rebuilding Your Investment Portfolio
Kirk Shinkle

Markets have managed to claw back from the worst crisis in decades to rock Wall Street, but nearly everyone is still feeling poorer than just a few years ago. So where do average investors stand today when it comes to regaining all that lost investment, especially the millions of Americans nearing retirement age? In many cases, they're still digging out. And how long will it take to recover your losses? Maybe not as long as you think

Foreign Currency Investing: Now May Be the Time
Kathy Kristof

If you've been trying to find a place to invest your money and are feeling uneasy with U.S. stocks and bonds, consider looking overseas. You should know that an increasing number of experts are encouraging clients to boost their holdings in international currencies -- a once-rarefied market that's become more accessible to individual investors.

Know Target-Date Fund's Strategy Before Investing
Andrew Leckey

Forget about resting easy. Target-date funds, billed as confidence-building vehicles that gradually shift your holdings into more conservative fixed-rate instruments as their date nears, have caused some sleepless nights. Investors stashed money in these one-stop retirement plans so they didn't have to worry about making their own allocation decisions. But it has become clear they need to better understand the basic

Oil Investments Are Predictably Unpredictable
Andrew Leckey

Oil companies are the elephant in the room. The wide trading range and erratic movement of oil prices has been perplexing to pundits, investors and motorists alike. You're not hearing bold prognostications or definitive explanations about either oil prices or oil-company stocks. Better to simply wait quietly for everything to play out, most rational people reason. When that will occur, however, no one knows for sure.

Mergers and Acquisitions Perking Up Again
Andrew Leckey

Whether or not you're personally convinced that the recession is just about over, those in the big-buck mergers-and-acquisitions game are believers. 'It's all a sign you can't keep a good capitalist down and eventually greed will overcome fear,' said James Paulsen, chief investment officer for Wells Capital Management, Minneapolis. People are saying, 'Gee, not only are we not going to have a depression, but it looks like we're actually going to have a recovery.'

Festive Times for International real estate Funds
Andrew Leckey

Let's get the party started: An overseas run-up in real estate funds is rocking. International real estate funds are up 38 percent in 2009, or about 100 percent above their market bottom in March, according to Lipper Inc. Global real estate funds that also include U.S. companies are up 28 percent this year.

Demographics Should Factor into Investment Strategies
Andrew Leckey

Demographics will be playing an increasing role in long-term investment. A global potpourri of aging populations, rising middle classes and out-of-kilter national economies must be factored into individual strategies for the future. Savvy investors consider such things ahead of time, rather than as they occur.

Avoid Motion Sickness With These Investments
Andrew Leckey

Most investors want to avoid motion sickness. Even if the final results could be the same, arriving at those results on a smooth road with few bumps is preferable to veering up and down like a roller coaster. Yet those same investors also have some difficulty shaking off a commonly held belief ...

Time to Pick Inflation-Fighting Investments
Andrew Leckey

Some experts are convinced that a rise in prices will be the end product of stimulus packages, bank bailouts, budget deficits and economic recovery. Their belief is not universal, and timetables are pure conjecture. Nonetheless, that hypothesis is worth some consideration by any investor with a well-rounded portfolio.

Should You Join the Roth Conversion Parade
Mark Miller - Retire Smart

Get ready for a big push from the mutual fund industry this fall urging you to convert your traditional tax-sheltered retirement account to a Roth IRA. The inspiration for the marketing drumbeat is a change in federal law next year that lifts the household income limit for eligibility to convert traditional IRAs to Roth accounts. Marketing hype aside, retirement investors should give serious consideration. Here's why ...

Size Up Your Inflation Risk, Then Gird for the Possible
Kathy Kristof

Prices for goods and services have been relatively tame for the last three decades, but billionaire investor Warren Buffett recently put words to the fear of many market professionals. Inflation may not be around the corner. But, he said in a recent opinion piece, unless something is done to curb government deficits, inflation could hit with a vengeance when the economy starts to gain steam.

Should You Invest in Socially Responsible Funds
Kimberly Palmer

Socially responsible investing, often referred to as SRI, has grown so much over the past decade that the industry group Social Investment Forum estimates it accounts for 1 out of every 9 dollars that is professionally managed in the United States today. But some consumers hesitate to put their money into socially responsible funds. Here are questions and answers to help you decide if socially responsible investing is right for you.

Investing - Roth IRA Conversion: Good Timing is Important
Humberto Cruz

When you convert a traditional IRA to a Roth, you owe tax on the converted amount as if you had simply withdrawn it from the traditional IRA (which in fact you have). But a conversion avoids the normal 10 percent penalty on IRA withdrawals before age 59-and-a-half.

Investing - Congress Mulls Stricter Standards for Brokers
Humberto Cruz

As Congress considers extending the fiduciary standard to brokers - in essence, requiring them to put clients' interests first - consumer and investor advocates, regulators, professional groups and prominent advisers are urging its adoption and trying to prevent attempts to water the standard down.

Investing - Be Smart About Charitable Giving
Andrew Leckey

Charitable giving didn't dry up with recession, but it did become more selective. You aren't seeing donation pledges and checks tossed around casually in 2009. That prudent philosophy has prompted nonprofit organizations to hold their friends close.

Investing - PIMCO Fund Family Has Excelled During Downturn
Andrew Leckey

The PIMCO fund family gets a gold star for insight and early detection of the housing and mortgage debacles, resulting in strong results throughout many of its funds over the past three years. 'PIMCO and the strength of its bond portfolios has really stood out as a perceived advantage for it during the downturn'

Investing - Alcohol, Tobacco Stocks Are Recession-Resistant, Not Recession-Proof
Andrew Leckey

Alcohol and tobacco will always be controversial investments for obvious reasons, yet they tend to weather recession better than many other stock groups. Credit their massive cash flow from loyal repeat customers for a resiliency that overshadows their dubious reputations. No industry, however, can turn a blind eye to 2009 economic trends.

Are Sin Stocks Recession-proof
Kirk Shinkle

"Sin" stocks have had a rough go during this recession despite a reputation as one of the safer spots to park your money during downturns. Gambling, booze, and cigarette firms all have loyal (addicted, even) customers who are supposed to keep coming back no matter how bad the rest of the economy gets. Unfortunately, as with many other bits of the market, this time is different.

Best Mutual Fund Families
By Katy Marquardt

In a recent survey, more than 3,000 financial advisers weighed in with their picks of the top fund families. Criteria included consistency, ethics, trustworthiness, sophistication, and social consciousness. The survey was commissioned by Horsesmouth, an online adviser community and kasina, a financial services consulting firm. But since straight rankings reveal only so much, We asked a handful of financial advisers which fund families they favor and why.

Is There Hope for Home-Related Investments & Home Builder Stocks
Andrew Leckey - Successful Investing

Recession and declining property values have hit homeowners hard, which is bad news for investments tied to homes and property. Homebuilders, home improvement centers and real estate investment trusts are left to pin their hopes on an economic revival.

Financial Security - Income Annuities
Mark Miller - Retire Smart

Let's say you won't have a defined benefit pension in retirement, or that you have a pension that won't pay much. One option is a do-it-yourself pension--better known as an income annuity. An income annuity is something like the mirror opposite of life insurance. A life insurance policy protects you and your family from the possibility you'll die prematurely; an income annuity insures you against the risk that you might outlive your assets.

Women Face High Risk of Outliving Their Money
Mark Miller - Retire Smart

Here's some bad news for men: We don't live as long as women. But there's bad news for women, too: you might live too long -- financially speaking. Women face a greater longevity risk--the danger of outliving their assets and experiencing poverty in old age. The average life expectancy for a 65-year-old American woman is 20 years, or 85 years of age--three years more than a man.

Do Your Homework Before Investing in Target-Date Funds
Humberto Cruz

Target-date funds are mutual funds designed for people retiring in or close to a particular year. For example, a 2025 target-date fund is intended for those planning to retire in or about 2025. Target-date funds are attractive and convenient -- however ...

Why Target Date Funds Face Heat and Probable Reforms
Mark Miller - Retire Smart

Target-dated funds, which offer a way to put your 401(k) investing on cruise control, are taking a lot of heat due to the large losses suffered by some close-to-retirement investors in the market crash. At a recent Washington hearing, regulators threatened to impose new regulations and controls on these fast-growing investment products.

7 Tips for Picking a Target-Date Fund
Emily Brandon

Many retirement savers think they can put their investment choices on cruise control if they use a target-date fund. These funds offer a mix of stocks, bonds, and cash that the fund manager automatically adjusts to become more conservative over time, based on the retirement date the participant selects. But it's best to take a look under the hood before stashing your nest egg in a target-date fund. Here are some tips for finding a target-date fund that is right for you.

To Stay Safe, Sell Stocks: Zvi Bodie says retirees should go into conservative overdrive
Emily Brandon

While most financial planners are still extolling the virtues of stocks -- even in the midst of a recession -- Zvi Bodie is telling retirement-age investors to run the other way. The Boston University and MIT finance and economics professor says any investor who doesn't have the heart of a high-stakes gambler should pull his or her nest egg out of the stock market and shift retirement money ...

Mutual Funds Stage a Comeback: Time to Forgive and Forget?
By Katy Marquardt

After spending much of last year in the doghouse, mutual fund managers have now had two quarters in 2009 to regain the faith of investors. Many of last year's losers are now posting solid gains over the S&P 500

Investors Near Retirement Age Face Big Challenges
Mark Miller - Retire Smart

New data shows just how steep a climb older investors face in attempting to recover from the market crash. It appears that younger retirement investors are faring much better than those near retirement age in bouncing back from last year's market crash.

Avoid These Personal Investing & Financial Gaffes
Andrew Leckey

People want to read about how to make money, not how to avoid losing money. The depth of this recession, however, makes capital preservation every bit as important as positioning yourself to make money as the economy improves. Investors typically make mistakes during this murky in-between economic period.

Choose an Investment Professional Carefully
Andrew Leckey

When it comes to selecting an investment professional, trust is a relative term. Many investors understandably feel a need for additional help in navigating today's volatile markets and economy. That means carefully checking out individual securities brokers or financial planners to find those who merit their confidence.

Immediate Annuities Offer Security, But Tread Carefully
Humberto Cruz - Savings Game

An immediate or income annuity is an insurance product that turns a lump sum premium into lifetime income. Many people hate giving up their principal to an insurance company, and immediate annuities had been slow to catch on. But amid the stock market meltdown.

Separating Deals From Duds: Blindly buying stocks can be hazardous to portfolio

Despite the market's roaring rally over the past three months, some stocks--including those of well-known companies--still look cheap. So how do you separate the deals from the duds? Understand why the stock is cheap.

Basic Materials May Be Unexciting, Except As an Investment

Basic materials stocks sound about as exciting as freshly laid asphalt, but they've become a steaming-hot investment in 2009. This group was devastated last fall as hedge funds abandoned the then-dominant thesis that the world -- especially Asia -- needs to keep building, and summarily dumped the stocks. However, ambitious economic stimulus packages in the U.S. and abroad have revived the need for basic materials.

Emerging Markets Soar but Remain Risky

Emerging markets are like those giant slices of double-mud chocolate-brownie cake offered to you by restaurant servers at the end of your meal. You run the risk of a severe stomachache later, but they sound so good it's hard to resist.

Despite Risks, Some See Opportunities in Speculative Areas of the Market

At a time when so many "sure" investments have let everyone down, speculative investing sounds like simply throwing money down the drain. Shell-shocked investors, wishing no medals for bravery, have contented themselves with safer, low-yield choices.

A Strategy for Stocks? Look Inward First
Kathy Kristof

Uncomfortable putting your hard-earned money in stocks -- even after the recent run-up that has helped recover a portion of the last year's losses?

Strength of Technology Stocks Surprises

Technology is the surprise investment leader this year.

Science and technology stock funds are up 13 percent this year, versus the 2 percent decline of the average diversified stock fund, according to Lipper Inc. Among the tech-firm royalty, Apple Inc. (AAPL) stock is up 40 percent this year, IBM Corp. (IBM) up 22 percent and Google Inc. (GOOG) up 21 percent.

 

3 Stocks Investors Are Betting Heavily Against
Short-sellers are wagering these shares are poised to tumble.

3 Small Caps Insiders Are Buying
Hough: The brass at these firms is staking its own cash on shares.

3 Firms With Rising Returns on Capital
Efficiency efforts at these companies bode well for stockholders.

7 Funds for a Tricky European Market
Greece's financial woes have made Europe-centric funds a tough call.

3 Stocks Priced a Third Below the Market
Hough: Shares of these well-known companies trade at a sizable discount.

3 Stocks Turning Research Into Riches
Hough: These companies are spending big on new products.

3 Small-Cap Stocks Up 30% This Year
Hough: These shares might be attractive to momentum investors.

7 Funds Betting Big on Health Care
As Capitol Hill debates reform, these funds think the industry looks good.

3 Midcap Stocks With Fast Dividend Growth
Hough: Medium-size companies that have increased shareholder payments.

12 Funds Focused on Small Companies
These value funds are betting on tiny companies ignored by other investors.

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