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What Pros Say: Hedge And Look For Alternatives

CNBC.com
Wednesday, 27 Oct 2010 | 11:33 AM ET

Smart investors need to look at savvy alternatives—and in some cases that's anything but stocks.That's the verdict of some investment pros at Charles Schwab's 19th annual IMPACT conference of financial advisors in Boston this week.

Winterize Your Portfolio
Bernie Clark, EVP of Charles Schwab Advisor Services, shares his market insight with CNBC's Tyler Mathisen at the Schwab Impact 2010 Conference.

"It's about bringing a new array of strategies to investors," Rick Lake, portfolio manager of Aston Lasso Alternatives Fund, told CNBC in a three-person round table discussion. Lake says investors are looking for alternative strategies, such as short selling, hedging and commodities.

Tom LaPointe, portfolio manager for the Third Avenue Focused Credit Fund, agrees, saying his focus is on "the alternative space", in areas such as distressed debt, high yield bonds.

"Investors are looking for income," says LaPointe, adding that investing in bonds is "condemning clients to 2-percent returns for the next ten years"

Thomas Meyer, CEO and Chairman of Meyer Capital Group Wealth Management, adds that his goal is to reduce risk for clients in the current environment.

"Individual investors don have any appetite for risk at this point," says Meyer, who. among other things, is trying to profit from the declining dollar and emerging market growth, while also emphasizing capital preservation.

Earnings Central

Commodities

Currencies

  • The yen slipped to 10-day lows against the dollar on Friday following upbeat U.S. economic data and hopes for an end to violence in Ukraine.

  • CNBC's Jackie DeAngelis discusses the day's activity in the commodities markets. Oil closed up on the day, and nat gas closed up, as well, while gold was down on the day.

  • CNBC's Tyler Mathisen looks ahead to what are likely to be next week's top business and financial stories. More earnings results next week. Starbucks and Netflix may have been helped by the bad winter. Also, the Boston Marathon is next week, and 36,000 runners will participate.

Mutual Funds

  • Total U.S. money market mutual fund assets fell by $35.02 billion to $2.58 trillion for the week that ended Wednesday, according to the Investment Company Institute. Assets in the nation's retail money market mutual funds fell by $5.33 billion to $912.96 billion, the Washington- based mutual fund trade group said Thursday.

  • The $9.4 billion Fidelity Select Biotechnology Fund plunged 11.75 percent during the first 14 days of April. That put the fund near the bottom among nearly 3,800 U.S. mutual funds tracked by Lipper Inc. Only six funds performed worse, but they had less than $100 million in assets each.

  • BOSTON, April 16- American Funds, the No. 3 U.S. mutual fund family, advised some customers to change user names and passwords on Wednesday as the number of companies and people affected by the notorious "Heartbleed" bug grows.

Bonds