GO
Loading...

Enter multiple symbols separated by commas

Editor's Introduction: Staying Out Of The Cold

Market historians and optimists might be hopeful about the stock marketin the coming months, even year.

snow_storm_AP.jpg

Over time, midterm elections during the first-terms of Democratic presidents have brought stunning market rallies, on the assumption that the combination of a Democrat in the White House and a Republican-controlled senate often results in gridlock, which tends to reduce uncertainty for Wall Street.

If that is the case, US stocks in 2010 will almost certainly finish higher for the second straight year after a devastating 2008 and a down 2007. They might even manage a double-digit gain.

There's always the exception, however, and this year has brought more than its share for stocks: a red-hot July and September; a brutal, cold August.

What's more, given the health of the US economy—and the global one—as well as changes in the world of investing, there's ample reason for pause.

Demand and growth remain weak and debt high for both consumers and governments. The growing role of high-frequency tradingand other institutional, computer-driven investing forces sometimes make technical factors as powerful as fundamental ones in moving stock prices.

WYP2010_badge.jpg

Meanwhile, two years after the financial crisis and ten years after the great bear market, retail investors are feeling twice burned and very much shy about re-entering the stock market. Financial advisors these days seem to spend as much time on hand holding as they do actively managing their clientsportfolios.

There's growing talk of a bond bubble and a gold bubble in a safe-haven-obsessed marketplace.

For all the talk of a new normal, some may be wondering if it is more a matter of no normal. Do the same rules rules—diversification, buy and hold—and vehicles—mutual funds, single stocks—still apply? Is there a new calculus, physics to the world of investing?

It's against this backdrop, that we've assembled our annual our "Winterizing Your Portfolio" special report, addressing some of the nagging concerns and questions.

Analysis & Advice:

Slideshows:

Earnings

Commodities

Currencies

Mutual Funds

  • NEW YORK, May 22- If you can't beat them, buy them. That's the theory underlying a move by a growing number of mutual fund managers at companies including T. Rowe Price and Eaton Vance to slip shares of indexed exchange traded funds into their actively managed fund portfolios. Putting money into ETFs rather than having it sit in cash is a "cheap and efficient way to gain...

  • NEW YORK— Most of us don't worry about taxes when it comes to mutual funds. We don't need to because we invest in them through a 401, IRA or another account designed to delay taxes until after retirement. "There's a lot of effort in the industry on picking stocks and timing the market, but that is extremely difficult to do persistently," says Clemens Sialm, a professor at...

  • NEW YORK, May 21- The Pimco Total Return Fund, which last month lost its crown as the world's biggest bond fund, is now losing some momentum in performance. The Pimco Total Return Fund hit a peak of $292.9 billion in assets under management in April 2013. "Globally, we maintain exposure to diversifying sources of duration, including in Mexico and in the eurozone," Pimco...

Bonds