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February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
June 10, 2009
/ 18 Sivan 5769
Best stock buys passed quickly, even for pros
By
Gail Marks Jarvis
http://www.JewishWorldReview.com | (MCT)
No-brainer bargain stocks have been picked over.
Just as individuals are starting to develop the stomach for investing again, professional investors say stock-picking has become a challenging endeavor.
The best deals evaporated so quickly in the rally that followed the early March stock market sell-off that even the professionals missed out on many of them.
Gathered at a Morningstar convention recently, some of the most renowned fund managers were asked to tell an audience of investors and financial advisers about mistakes they made amid the 56 percent plunge in the market. One of the most glaring: They didn't buy enough or fast enough.
Like the average investor, fund managers struggled to make sense of what was occurring, and emotions got in the way.
Wally Weitz, manager of Weitz Value fund, said that as he awoke each day during the market plunge, he wondered what former financial Goliath might disappear. Stock prices were attractive, he said, and, "It would have been fun if it hadn't been so terrifying."
Christopher Davis, manager of the Clipper and Selected American funds, said his grandfather used to say, "You make most of your money in a bear market; you just don't realize it at the time."
For investors who put money to work around the March 9 lows, that is likely to turn out true. As an example, Davis says he was able to pick up the market's top-quality stocks, like Johnson & Johnson, at prices not seen in a lifetime of investing. "These are the sorts of things you can buy and put away."
Now that the stock market has climbed roughly 40 percent since early March, the low-hanging fruit has been picked. Investing doesn't seem as scary, but it requires deeper analysis and provides less clarity on value.
You could see the lack of conviction at the Morningstar conference as mutual fund managers described what they are buying now and why.
During most years, financial advisers use the conference to pick up on common themes and sectors embraced by the fund managers who speak. After the worst of the 2000-02 bear market, for example, numerous managers were singing the praises of technology companies beaten to cheap prices after declines of 70 percent or more.
But this year an investor would have been hard-pressed to find a common view among the pros other than the belief that the worst of the financial crisis has likely passed and that the economy will show lackluster growth for several years.
The view is what Pimco bond fund manager Bill Gross calls the "new normal," or a period of perhaps a decade when the economy won't be able to grow vigorously because consumers are out of jobs and laden with debt. As they save more and spend less, companies worldwide are expected to have trouble growing profits. Gross said he thinks the stock market's returns might be about 6 percent annually for an extended period.
Against the uncertainty and higher stock prices left in the aftermath of the powerful rally, some fund managers said they feel more comfortable buying corporate bonds now than stocks.
That's unusual behavior for stock-pickers.
Fairholme fund manager Bruce Berkowitz said he's never seen bonds so cheap. He likes earning double-digit yields while having some protection in the case of bankruptcy. Stocks generally are worthless if a company goes bankrupt, and that's an important consideration now because the bankruptcy rate is expected to soar amid financial troubles. In a bankruptcy, bondholders lose money but usually end up with something, even if it's pennies on the dollar.
Berkowitz is buying stocks too.
For example, he has made a major investment in Pfizer, allocating a large chunk of his fund to the pharmaceutical stock. He has done it because he is especially focusing in this tough economic environment on companies with sizable cash positions or free cash flow.
But in a sign of the times, and a lack of agreement among professionals, Berkowitz's peers at the conference saw Pfizer as a controversial stock pick. Health care is one of the few sectors that did not soar in the rally, creating possible opportunities for investors attentive to stock prices.
But Rajeev Bhaman, manager of Oppenheimer Global, questions whether pharmaceutical stocks will turn out to be a value. He argues that health care stocks were not carried away by the rally because of the threat that Congress will adopt health care changes that will stifle profits. In addition, he faults pharmaceutical companies for sitting on cash rather than investing aggressively in the research and development that can lead to new products.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Gail Marks Jarvis is a personal finance columnist for the Chicago Tribune and author of "Saving for Retirement without Living Like a Pauper or Winning the Lottery." Comment by clicking here.
Previously:
05/12/09: On Wall Street, signs plant a seed of hope
04/08/09: Analysts debate the future of the rally
03/19/09: Gold unlikely to pan out as cure-all
02/29/09: Housing credit could provide sizable boost
02/19/09: Rebalancing being put in different light
02/04/09: Diversification doesn't always offer insulation
01/27/09: Taking steps can help regain some control
01/20/09: How to save for college during a recession
01/12/09: Bonds still risky option to stocks
12/24/08: Some predict mid-2009 for return to investing joy
12/09/08: A small dose of short funds may be useful
11/11/08: Mutual funds can get caught in downward spiral
10/27/08: Investors can bounce back from even the worst of times
10/20/08: Want to sell? Look at 401(k), but don't leap
10/16/08: Want to be like Buffett? There are ways
09/29/08: Money protection only goes so far, so know the risks
08/26/08: Retail stocks may not be best fit for investors
08/20/08: Rear-view mirror investing can be dangerous to a portfolio
07/01/08: What do we do? My daughter didn't get a scholarship
02/25/08: Before abandoning your mutual fund
02/14/08: Dirty little secret of some funds may be haunting
01/29/08: Sorting out the stock market
01/03/08: One word for 2008 crystal-ball gazers: Caution
12/11/07: Buy and hold isn't necessarily tried and true
11/26/07: Translating the falling dollar's implications for investors
11/13/07: Gradual retirement may not be key to happiness
11/05/07: Rate cut won't offer immunity to investors
10/29/07: Employers set to help workers save in 401(k) accounts
10/22/07: Playing bounce may be costly to stock investors
10/10/07: Investors find boring often can be fruitful
10/01/07: Make up lost time with swift, smart action
09/24/07: Balance is key for investing by retirees
09/18/07: Homeowners who wait see options fade
09/04/07: Easy matter to rate fund's performance
08/27/07: Mortgage mess could be good for savers
08/17/07: Small stocks are coming with large caveats
© 2007, Chicago Tribune Distributed by McClatchy-Tribune Information Services
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