Four Major Reductions by NWQ Managers

The stocks bought by NWQ Investment Management Company over the past 12 months averaged a return of 22.69%. As of the third quarter, the portfolio lists 160 stocks, 17 of them new, a total value at $10.52 billion, with a quarter-over-quarter turnover of 5%. The portfolio is weighted with top three sectors: financial services at 30.1%, technology at 14.9% and energy at 14.2%.

Here are the top four reductions made by NWQ Managers in the third quarter of 2013. NWQ Managers significantly reduced CA Technologies, an Internet technology software company that services a product's total lifecycle. The company reported its second quarter fiscal year 2014 with revenue at $1.14 billion, down 1% from the same fiscal quarter one year ago. Net income was up by 8% (GAAP) at $240 million for the reporting quarter, compared to $222 million in the prior-year quarter. Earnings of $0.53 per diluted share (GAAP) are up by 10%. In the same quarter a year ago, earnings were $0.48 per diluted share, on a GAAP basis.

CA Technologies Inc. (CA): Reduced

Impacts Portfolio: -1.29%

Current Shares: 11,161,263

Up 50% over 12 months, CA Inc. has a market cap of $14.95 billion; its shares were traded at around $33.13 with a P/E ratio of 14.10. The dividend yield is 3.02%.

Guru Action: As of Sept. 30, 2013, NWQ Managers reduced its position by 31.36%, selling 5,100,276 shares at an average price of $29.96, for a gain of 10.6%.

Overall, NWQ Managers has averaged a 49% gain on 8,253,240 shares bought at an average price of $22.20 per share. The firm gained 44% on 51,993,612 shares sold at an average price of $23.08 per share.

Check out more gurus trading and insiders selling.

Track historical share pricing, revenue and net income:

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Viacom Inc. (VIAB): Reduced

Impacts Portfolio: -0.9%

Current Shares: 3,372,883

Up 59% over 12 months, Viacom Inc. has a! market cap of $35.51 billion; its shares were traded at around $79.63 with a P/E ratio of 16.40. The dividend yield is 1.44%.

Guru Action: As of Sept. 30, 2013, NWQ Managers reduced its position by 31.15%, selling 1,525,945 shares at an average price of $77.39, for a gain of 2.9%.

Over five years of selling for major gains, NWQ Managers has averaged an 86% gain on 27,187,216 shares sold at an average price of $42.81 per share.

Check out this remarkable trading history:

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Check out more gurus trading VIAB in the third quarter. No insider activity was found.

Track historical share pricing, revenue and net income:

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Halliburton Company (HAL): Reduced

Impacts Portfolio: -0.87%

Current Shares: 5,984

Up 70% over 12 months, Halliburton Company has a market cap of $46.23 billion; its shares were traded at around $54.50 with a P/E ratio of 25.00. The dividend yield is 0.85%.

Guru Action: As of Sept. 30, 2013, NWQ Managers reduced its position by 99.75%, selling 2,394,262 shares at an average price of $46.84, for a gain of 16.4%.

NWQ Managers has averaged a gain of 129% on 12,070,445 shares bought at an average price of $23.81 per share. The firm gained 43% on 12,064,461 shares sold at an average price of $38.20 per share.

Eight gurus made new buys of HAL in the third quarter. Check out more gurus trading and insiders selling.

Track historical share pricing, revenue and net income:

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Cisco Systems Inc. (CSCO): Reduced

Impacts Portfolio: -0.8%

Current Shares: 11,878,965

Up 13% over 12 months, Cisco Systems Inc. has a market cap of $115.55 billion; its shares were traded at around $21.46 with a P/E ratio of 11.70. The dividend ! yield is ! 3.03%.

Guru Action: As of Sept. 30, 2013, NWQ Managers reduced its position by 24.23%, selling 3,798,630 shares at an average price of $24.82, for a loss of 13.5%.

Overall, NWQ Managers has averaged a 32% gain on 24,438,916 shares bought at an average price of $16.21 per share. The firm gained 2% on 12,559,951 shares sold at an average price of $21.13 per share.

Check out more gurus trading and insiders selling.

Track historical share pricing, revenue and net income:

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NWQ Managers is an affiliate of Nuveen Investments. As of June 30, 2013, Nuveen Investments managed approximately $216 billion.

Professionals with NWQ Managers have an average of 19 years of analytical experience.

Here is the complete portfolio of NWQ Managers.

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Sprint Finishes Last in Consumer Reports Service Survey

Michael Sohn/APSprint CEO Dan Hesse Sprint has been ranked last among U.S. cellphone service operators in a customer satisfaction survey by the influential Consumer Reports organization, scoring dismal marks for measures ranging from voice to 4G reliability. No-frills carrier Consumer Cellular received the highest overall score of 88 out of 100, followed by U.S. Cellular (USM) with 75. Sprint received the lowest score of 59, faring the worst in terms of value, voice, text and 4G services. The annual ratings were based on a September survey of 58,399 cellphone service subscribers by the Consumer Reports National Research Center, which publishes widely followed surveys and reviews of everything from cars to refrigerators. In last year's survey, Sprint (S) trailed only Verizon Wireless among the four major carriers. Verizon Wireless (VZ) (VOD) ranked highest again this year with a score of 71. T-Mobile US (TMUS) rated 65 and AT&T (T) 64, according to survey results released Thursday. The rankings are based on ratings for voice, text and 4G, taking into account the occurrence of problems and adjusted for frequency of use. Sprint has been revamping its network after years of customer losses. The company, which is 80 percent owned by SoftBank, warned in October that customer defections would remain high in coming quarters. The company reported a decline in third-quarter revenue as it lost more subscribers than expected following the shutdown of its older network. "Our latest cell service satisfaction survey revealed a somewhat precipitous decline by Sprint that shuffled the rankings of the major standard service providers," Glenn Derene, Electronics Content Development Team Leader for Consumer Reports, said in a statement.

Mint made the Mac App Store's Best of 2012 list for a reason. This simple, clean app shows how much you are spending in each category of your budget by monitoring all of your transactions. We love signing in and getting a quick, dirty rundown of where our money has gone over the last week, and using their personalized budget tools to stay on track. We highly recommend adjusting your budgets for summer months. You might spend less on transportation when the weather is nice, and chances are you could use that extra cash to flesh out that restaurant tab, right?

Price: Free

Yahoo adds $5 billion to stock buyback

Yahoo CEO Marissa Mayer has announced a $5 billion buyback expansion, which will add to current shareholder goodwill.

NEW YORK (CNNMoney) Yahoo CEO Marissa Mayer has given shareholders a reason to smile: The company is boosting its stock buyback by another $5 billion.

Shares of Yahoo rose 1.7% in after-hours trading Tuesday on the announcement. The company also revealed it will sell $1 billion in debt, with notes that mature in 2018. About $200 million of the proceeds from that debt will be used for stock buybacks.

Yahoo's (YHOO, Fortune 500) shares are already up 74% so far this year, and the $5 billion buyback expansion will likely add to that shareholder goodwill.

With Tuesday's announcement, Mayer & Co. are doubling the separate $5 billion stock buyback that Yahoo embarked upon in May 2012. Yahoo said in its last quarterly earnings statement that as of Sept. 30, it had repurchased all but $324 million of that amount.

Related story: How Yahoo's acquisitions fit into Mayer's master plan

That original buyback program included Yahoo repurchasing 40 million of its shares from activist investor Third Point. Yahoo also helped fuel that buyback by selling part of the stake it owns in Chinese e-commerce giant Alibaba.

Mayer's appointment as CEO helped inject excitement into Yahoo, and moves like buybacks and big acquisitions have helped boost the company's profile. But stock analysts still see Yahoo's existing 24% stake in Alibaba as the major driver of Yahoo's own stock value.

  Forget Marissa. Alibaba fuels Yahoo surge

Alibaba, whose nine distinct businesses span all parts of the e-commerce chain, is preparing for an initial public offering -- plans that have helped keep Yahoo's stock high.

The Fed: More of the Same

As the head of an independent agency subject to little Congressional or executive intervention, the chairperson of the US Federal Reserve wields an enormous amount of power over America’s economy.

By and large, the only real check on a Fed chairperson’s authority is the requirement that policy be set through the consensus of the Federal Open Market Committee (FOMC). Historically, though, the seven members of the Federal Reserve Board of Governors fall in line with the chairperson, with the only real dissent coming from the five Federal Reserve Bank presidents who also have votes on the FOMC. So what a Fed chair wants, a Fed chair usually gets.

That makes it worth noting that Janet Yellen, the current number two at the Fed and the nominee to replace Ben Bernanke when his term expires on January 31, veritably sailed through her nomination hearing before the Senate banking committee yesterday.

Some lawmakers on the committee aggressively questioned Yellen on what the Fed has done so far to ensure the stability of the nation’s banking sector and how the Fed is progressing with writing the new rules mandated by the Dodd-Frank financial reform law. However, there was none of the acrimony that so often marks confirmation battles.

Given the relative conviviality of the hearing, the committee is expected to vote to send Yellen’s nomination to the full Senate sometime next week despite the fact that Senator David Vitter (R-LA) has said that he will oppose her confirmation. And with the Senate controlled by the Democrats, several of whom signed a letter recommending her nomination to President Obama, the odds are that we’ll have a new Fed chairperson sometime next month.

That’s important to our inflation outlook. While she walked a fine line pointing out that inflationary danger lurked no matter what action the Fed took, Yellen also stressed that removing the suppo! rt of quantitative easing (QE) too soon would be devastating to the economy. She essentially hewed to the Bernanke line, saying that she would only consider ending QE once the unemployment rate fell below 7 percent.

She also asserted that she saw no evidence of an asset bubble forming as a result of QE—many believe that the rapid rise we’ve seen in equity valuations are largely a result of QE. Consequently, she shows no inclination to change the current course of monetary policy.

There’s some inflation in the economy today and by our measures it is well above the government reported 1.2 percent. We’re not staring hyperinflation in the face any time soon, but I do believe there’s a potentially massive inflationary hangover waiting for us down the road.

My greatest concern at this point isn’t just the extremely unconventional nature of the Fed’s economic intervention; it’s that our central bank isn’t the only one in the world going down this primrose path.

Two of the world’s other largest economies are also stimulating at a furious pace. The Bank of Japan is pushing trillions of yen into that nation’s economy and the European Central Bank’s recent rate cut to 0.25 percent leaves the euro zone flirting with a zero interest rate policy. There’s a lot more money than just the Fed’s $85 billion in monthly asset purchases flowing into the global economy.

This much monetary support pumping through the global economy is entirely unprecedented, so it’s tough to believe that central bankers around the world actually have a handle on the potential consequences three to five years from now. It appears that inflation is simply being baked into the cake we’ve been eating for four years.

I’m not so much bothered by the fact that Yellen looks to be coasting into the big chair at the head of the table—she had a ringside seat for most of the global financial crisis—but! by her a! pparent lack of a stimulus exit plan. When pressed on how she would identify asset bubbles or inflation forming, her response was basically that she would know it when she saw it.

The upshot for investors: Yellen’s confirmation, with her prescription for more of the same, means that we should continue to watch for signs of building inflation. When governments print more money, it reduces its value and causes prices to rise as producers need to get more for their product. And in today’s interconnected society, when one central bank prints money it impacts everyone. One need only look to the huge run up in many emerging market stocks to see the effect.

24/7 Wall St.: Richest and poorest U.S. cities

Median household income in the United States remained relatively unchanged between 2011 and 2012, after falling 7% from the start of the recession. While the nation continues to recover based on other measures, it is not exactly encouraging news.

The nation's largest cities have followed a similar pattern. Income for most of the 366 metropolitan areas measured by the U.S. Census Bureau are flat in the last year, and many are still down significantly compared to 2008. According to the Census Bureau, Brownsville, Texas replaced McAllen, Texas, as the country's poorest metro area. San Jose, Calif. took the top spot as the wealthiest metro area, replacing Washington, D.C. 24/7 Wall St. reviewed the metropolitan areas with the highest and lowest median incomes in the U.S.

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While income levels and poverty rates are not identical measures, low income and high poverty tend to go hand in hand. All 10 of the poorest metropolitan areas have higher percentages of residents living below the poverty rate, compared to the national figure of 15.9%. In Brownsville, the poverty rate is more than 36%, the highest in the nation.

According to Brookings Institution fellow Elizabeth Kneebone, one of the key determinants of income levels in a city are the kinds of jobs available. This includes jobs in technology, finance, high-skill manufacturing and professional services. Indeed, the wealthiest metropolitan areas have among the highest concentrations of these types of jobs.

Nationally, 10.9% of the population is employed in professional services like scientific and management roles. In places like Washington, D.C., and San Jose, it is much closer to 20% of the population. The low-income cities have far fewer residents in these occupations.

At least due in part to this, low income areas tend to have a much smaller percentage of residents with post-se! condary education. Nationally, just under 30% of the adult population has at least a bachelor's degree. In poorer places like Dalton, Ga., and Lake Havasu, Ariz., barely one in 10 adults have a bachelor's degree. Conversely, in each of the five wealthiest metro areas, the rate is well over 40%.

For the wealthy cities, Kneebone explained, "It's like a virtuous cycle: wealthier cities high have the industry and the jobs that attract highly educated workers, and if you have a highly educated workforce, you can attract those types of jobs into the region." Residents in the poorest cities face the opposite situation.

In the poorest areas, residents are much more likely to be employed in occupations that are low-skill, low-pay and require only modest education.

Not all agree that self-perpetuating poverty is a problem in these cities. Dr. Richard Burkhauser, a professor of public policy at Cornell University, explained that people are always able to leave these places. "It's certainly true that if you don't move around, your chance of getting out of poverty is much tougher than if you move." However, a major theme in American history is that generations leave poor places and find jobs elsewhere, explained Burkhauser.

While income has not improved significantly in most of the nation's metropolitan areas, there are exceptions. Notably, San Jose's median household income grew by roughly $5,000 in a single year. Brookings senior research analyst and associate fellow Alec Friedhoff noted that the city's improvement isn't surprising considering it is one of most tech-heavy metro areas in the country. "High tech areas have really bounced back quickly, and San Jose was the one that bounced back the fastest," he noted.

Based on data from the U.S. Census Bureau's 2012 American Community Survey (ACS), 24/7 Wall St. identified the U.S. metropolitan statistical areas (MSAs) with the highest and lowest median household incomes. Based on Census Bureau treatment, median household income for all ! previous ! years is adjusted for inflation. We considered poverty, median home value and health insurance from the Census Bureau's ACS. We also reviewed unemployment data provided by the Bureau of Labor Statistics. Unemployment rates listed are full-year averages for 2012 and not monthly rates. All ranks are out of the 366 U.S. metropolitan areas measured in the ACS, except for unemployment rates, which are out of 372 areas measured by the BLS.

These are America's richest -- and poorest -- cities.

AMERICA'S RICHEST CITIES

3. Bridgeport-Stamford-Norwalk, Conn.

> Median household income: $79,841
> Population: 933,835 (57th highest)
> Unemployment rate: 7.8% (tied-167th highest)
> Poverty rate: 8.9% (tied-8th lowest)

As of 2012, the Bridgeport metro area had one of the highest median incomes in the nation, at close to $80,000. Additionally, nearly 22% of the area's households made over $200,000, the highest percentage in the nation. Contributing to the Bridgeport area's wealth, the percentage of residents working in the high-paying finance and professional services sectors were among the highest in the nation last year. But the area also had the nation's second-highest income inequality, as measured by its Gini index score. While crime and poverty have long been problems in Bridgeport, neighboring cities such as Greenwich are home to some of the nation's wealthiest individuals.

2. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va.

> Median household income: $88,233
> Population: 5,804,333 (7th highest)
> Unemployment rate: 5.6% (46th lowest)
> Poverty rate: 8.4% (4th lowest)

Last year, 17% of households in the Washington, D.C., area had over $200,000 in income, higher than all but two other metro areas. Among the reasons for the area's high income are a highly skilled workforce, with more than one in every five workers employed in high-paying professional services fields, more than anywhere else in the U.S. In May, The Wall Str! eet Journ! al noted the area's economy has expanded beyond government in recent years, and that past federal spending has contributed to the development of a skilled and well-connected professional workforce. Additionally, the Washington, D.C., area population is one of the nation's most highly educated, with 48.2% of residents holding at least a bachelor's degree, more than all but a handful of other metro areas.

1. San Jose-Sunnyvale-Santa Clara, Calif.

> Median household income: $90,737
> Population: 1,894,388 (32nd highest)
> Unemployment rate: 8.6% (112th highest)
> Poverty rate: 10.8% (28th lowest)

Median income in the San Jose metro area, which constitutes part of Silicon Valley, jumped from $85,736 in 2011 to $90,737 last year. San Jose had among the largest concentrations of high-paying professional services and information jobs in the nation. But the area is not only the wealthiest in the nation, it has also become one of the most-desired housing markets. Just 3.6% of housing units were vacant in 2012, down from 4.9% in 2008, while median gross rent reached $1,560 last year, more than any other metro area in the U.S. Home values also were the highest in the nation, with a median of $624,200. More than 20% of homes in the area were valued at over $1 million.

MORE: For the rest of the 10 richest states, go to 24/7 Wall St.

AMERICA'S POOREST CITIES

3. McAllen-Edinburg-Mission, Texas

> Median household income: $33,761
> Population: 806,552 (67th highest)
> Unemployment rate: 11.0% (28th highest)
> Poverty rate: 34.5% (2nd highest)

As of 2012, 34.5% of McAllen area residents lived below the poverty line, the second highest percentage in the nation and more than double the national rate of 15.9%. The area also had the nation's highest percentage of residents without health insurance, at nearly 37%. In 2009, McAllen became a focal point in the national health care debate, due to the area's extremely high medical costs, in! spite of! its poor population. However, health care is not the only vital service many residents lack. In 2012, more than 2% of housing units did not have complete plumbing facilities, one of the worst rates in the nation. Finding work was also difficult for many residents, less than 64% of whom had a high school education as of 2012, one of the lowest rates in the nation. Despite decent job growth, the area's unemployment rate was 11% last year.

2. Dalton, Ga.

> Median household income: $32,858
> Population: 142,751 (87th lowest)
> Unemployment rate: 11.5% (20th highest)
> Poverty rate: 21.6% (46th highest)

No metro area in the U.S. has a higher percentage of workers employed in manufacturing than Dalton, at over 40% last year. The major source of these jobs is the area's carpet industry — the city of Dalton bills itself as "The Carpet Capital of the Word." The industry took a hit as the housing market flopped, however, and a large portion of the area's manufacturing jobs were lost. As of last year, the area's unemployment rate was 11.5%, one of the highest in the nation. Between 2008 and 2012, median household income fell from $44,847 to less than $33,000. But there has been some good news lately. According to the Chattanooga Times Free Press, the Dalton area's largest carpet manufacturer, Shaw Industries, announced plans to add a new factory and hire more workers as the economy improves.

1. Brownsville-Harlingen, Texas

> Median household income: $30,953
> Population: 415,557 (125th highest)
> Unemployment rate: 10.5% (37th highest)
> Poverty rate: 36.10% (the highest)

Nearly two out of five Brownsville-Harlingen residents were living in poverty as of 2012, the highest rate of the 366 metropolitan areas reviewed. According to PewResearch, Brownsville had one of the largest Hispanic populations in 2012, and the highest rate of poverty among Hispanics in large metropolitan areas, at 40%. Additionally, more than one in three people we! re living! without health insurance that year, the second highest rate in the U.S.. Home values were also low in 2012. Over 26% of homes were worth less than $50,000, about three times more than the median for the U.S., and one of the highest percentages of low-valued homes out of all metropolitan areas.

MORE: For the rest of the 10 poorest states, go to 24/7 Wall St.

Wall Street poker: How 6 top investors fared on the felt

NEW YORK (CNNMoney) Six of the world's top investors appear capable of playing great poker -- they're just not doing it yet.

After watching "Poker Night on Wall Street," a charity event that aired Wednesday on Bloomberg TV, it's clear to me these competitors have an aptitude for the game. I make this judgment based on what they said; not so much on what they did.

Matt Matros has won three World Series of Poker bracelets, and his career tournament winnings exceed $2 million. He finds the poker economy a lot more predictable than the actual one.

Take Jim Chanos of Kynikos Associates, who described himself as a "natural-born skeptic." That's a wonderful thing for a poker player to be! Amateurs will readily believe their opponents have good hands, but the stories told by betting patterns are often just that -- stories. His contrarian philosophy has helped make Chanos a lot of money in investing, and it could eventually serve him well in poker. But first he has to learn how to move all-in with a short stack.

Now consider Mario Gabelli of GAMCO Investors. He rated his chances of winning as "slim," and said he didn't consider himself good at bluffing or reading people. Such honest self-assessment is a hugely important quality in poker. Gabelli, though, said he had only played poker once, seven years earlier. Wednesday night he played...well, like someone who'd played poker only once.

Then there's John Rogers of Ariel Investments, who professed that patience at the table was his number one priority. Again, a commendable approach. The biggest sin committed by new players, by far, is impatience. Rookies play way too many hands. Still, if you never pull the trigger on a trade, you'll never make any money in the market, and if you never play a hand of poker (which seemed to be Rogers's strategy), then you have no shot to win.

The good news is that when smart investors apply their talents to poker, they can climb the learning curve quickly. Two of the players ha! ve taken the game seriously, and they have winnings to show for it.

David Einhorn of Greenlight Capital finished third in the million-dollar buy-in One Drop event at the 2012 World Series of Poker, while Bill Perkins of Skylar Capital took home nearly 300,000 British pounds in a London event just a few weeks ago. Neither Einhorn nor Perkins advanced very far in Wednesday night's event, but that was mostly because of bad luck.

Einhorn, in particular, has impressed many regulars on the tournament circuit. Poker pro Mike McDonald, who coached Einhorn for his final table appearance at the One Drop, said of his student: "He's possibly the most active listener I've ever met. Very few people are as good as he is with so few hours played."

The problem is, those extra hours are everything. In the same way years of experience separate Einhorn from talented traders just out of Wharton, many thousands of hours of play and study separate the best poker players from Einhorn. There are no shortcuts in either discipline.

The eventual winner of Poker Night on Wall Street, Steve Kuhn of Pine River, played well enough, and was clearly the most skilled competitor not named Einhorn or Perkins. Kuhn also understood, even in the moments right after he won, that taking up the game in a more competitive manner wouldn't be easy.

When the possibility of playing poker full-time was broached, Kuhn wisely brushed it off: "I kinda like my job already," he said.

Stocks: How Big a Problem are Earnings?

With earnings season in full swing–and bellwethers like Microsoft (MSFT), Bank of America (BAC) and JPMorgan Chase (JPM) already reporting–its clear that earnings are still growing–just not as fast as some had expected.

Agence France-Presse/Getty Images

Deutsche Bank’s David Bianco and team, for instance, lowered their earnings growth forecast in a report on Friday. They explain why:

We still think 4Q results will be the strongest S&P EPS and sales growth since 1Q12, but is unlikely to be double-digit as we were previously forecasting. We cut our 4Q13E EPS to $28.50, up 8% y/y from $29.00, up 10% y/y previously. 4Q results are healthy, but are softer than what macro data, particularly US and global PMIs suggested. Generating strong operating profit growth remains difficult given: 1) slow loan growth at Banks, 2) moderate capex growth  (Industrials healthy, Tech still slow), and 3) intense competition at most Consumer industries.

Morgan Stanley’s Adam Parker and team don’t believe the rate of growth will matter to investors as long as earnings continue to grow:

With 31% of the S&P 500 market cap reported, aggregate earnings are tracking 4.5% ahead of expectations. Financials have had strong results, on net, with beats from both [Bank of America and JPMorgan Chase] (both in our portfolio). Exfinancials, the earnings upside has been 4.0%, driven in large part by technology ([Microsoft, Oracle (ORCL) (December), and SanDisk (SNDK)], among others). Our view is the recent market sell-off will abate as we doubt investors will worry about a real corporate earnings decline, something we think is required for a material market decline.

Shares of Microsoft have dropped 1.3% to $36.33 today at 2:21 p.m., while Bank of America has dipped 0.3% to $16.40, JPMorgan Chase has gained 0.6% to $55.44, Oracle has fallen 1.2% to $36.68 and SanDisjk is up 0.3% at $69.67.

Finke’s ‘Bizarre’ Discovery: Stocks Safer in Long Term

One of the longest running debates in the field of investing is whether stocks are indeed long-run winners  — a view most famously articulated by the Wharton School’s Jeremy Siegel and his book Stocks for the Long Run — or the quite opposite notion, most associated with Boston University financial economist Zvi Bodie, that time does not lessen the risk of holding equities.

Siegel’s argument implies that advisors should counsel clients to endure a portfolio’s ups and downs for the long-term gain they can expect, while Bodie argues that the concept of “time diversification” violates bedrock economic theories that there is no free lunch and, further, that equities do not exhibit a decreasing likelihood of loss over time.

The idea has significant implications for financial advisors managing investor portfolios. Siegel has long advocated stock-heavy portfolios, while Bodie has frequently, and passionately, warned investors against taking unnecessary risks, advocating portfolios made up of inflation-protected savings bonds (I-bonds) or Treasury inflation-protected securities (TIPS).

Now a significant new study, based on a more complete data set, weighs in on the Siegel side, though not without some sympathy for Bodie’s position.

The paper, called “Optimal Portfolios for the Long Run,” is written by Morningstar’s David Blanchett, Texas Tech University professor and Research Magazine contributor Michael Finke and The American College’s Wade Pfau, and has already struck a chord in the world of academic finance, having been downloaded 850 times (as of this writing), though published for just a month.

ThinkAdvisor spoke about the new research with Michael Finke, in Austin, Texas, for the Retirement Income Industry Association’s annual advisor conference.

In what way does your new study update Jeremy Siegel’s extensive research on stocks for the long run?

Siegel just used U.S. data. One of the most compelling arguments against the concept of time diversification is that it’s just data mining, and we have only a limited data set; and the U.S. might be different; it might be exceptional.

We looked at 20 countries and over 2,000 years of data collectively [that is, over 100 years of returns data for each country].

We estimated based on this big data set what the optimal portfolio should be given different time horizons. It’s one of the most basic questions of portfolio construction, and it’s amazingly understudied. And surprisingly there’s little agreement among academics about whether [time diversification] exists. And the best argument about why it shouldn’t exist is that it essentially gives long-run investors a free lunch. They get the higher return for less risk than short-run investors.

Economic theory, of course, says there is no such thing as a free lunch or everybody would line up for it. But you found otherwise?

The bizarre thing is if you have a 30-year time horizon, equities become less risky in terms of purchasing power than holding 1-year Treasury bills and rolling them over. So you’re getting this huge premium, and you don’t have to take any risk to earn it. That shouldn’t happen.

It’s not a 100% certain that time diversification is going to work — nobody knows what’s going to happen in the future. The best we can do is gather as much data as possible and make forward-looking estimates as to what an optimal portfolio should be based on the most thorough possible analysis of backward-looking data.

Does your study factor in varying investor goals and risk tolerances?

We assume different levels of risk aversion and we estimate what an optimal portfolio should be for those different investors at different holding periods.

Your average investor is a short-term investor; the average turnover of an equity is a year.

We have evidence from another study we have done that investor risk tolerance changes during a recession, so people are less willing to take risk during a recession. That means that as equity prices fall, that creates volatility in the short run. But when the market recovers, all of a sudden people’s appetite for risk increases and stocks go up. This creates short-term volatility but tends to be smoothed out over time.

What do your findings imply for financial advisors?

In essence, [time diversification] creates a free lunch for long-term investors and a source of value for advisors who can help clients maintain a risky portfolio.

And are there any other critical implications for academics and financial professionals?

Yes. If you believe in time diversification, you have to believe in market timing.

Stocks become less attractive in a bull market [when prices are high] and more attractive in a recession [when prices are low]. So sentiment is the backbone of time diversification; sentiment drives returns. If you look at risk tolerance tests given to investors, on average they’re more risk averse when the stock market is declining.

What do you think economists like Zvi Bodie would make of these findings?

Zvi Bodie would say that if risk is priced fairly and if markets are efficient then [this time diversification benefit] shouldn’t happen. You only get rewarded for taking real risk. But if markets are sentiment-driven, then you’re getting something for nothing.

As an economist, you don’t want to rely on any strategy that gives people a free lunch; if there is one, then everybody will take it.

And you found that long-term investors can be treated to a free lunch?

A certain percentage of the time, a long-term should lose out, but it happens so infrequently. One of the most interesting things we found is there has been a decline in the equity premium across the world, especially over the last 40 to 50 years; yet the time diversification benefit has been increasing during that time. So while it seems investors have become more risk tolerant in general, they haven’t become less sentimental.

Meaning that they freak out and sell their portfolios?

Exactly.

So should advisors load their clients’ portfolios with stocks or avoid doing so because they’ll freak out?

Your average risk-averse worker is maybe not the ideal market participant to accept a lot of investment risk. If you think of the market as a way of allocating risk from those best able to bear risk and allocating safety to those who [most require] safety, then one would expect that a middle-class worker would not be among those best able to accept investment risk.

And if you believe in sentiment, then you may also have to recognize that these are among the workers most likely to move to cash during a recession.

But investors who have financial advisors and are more sophisticated are more likely to stick with [an equity-heavy portfolio].

The evidence suggests that you should tailor the equity allocation of a portfolio to the duration of the goal. But remember that nothing is ever certain.

You cannot portray risk as not risky, as Zvi Bodie [would affirm]. But it does appear that historically there has been a free lunch.

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Check out these related stories on ThinkAdvisor:

Cramer's 'Mad Money' Recap: Life Lessons

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

This program aired on Aug. 8.

NEW YORK (TheStreet) -- "There are some things I've been keeping from you," Jim Cramer told "Mad Money" viewers.

So he went a little autobiographical to tell viewers how he came to make the markets his life and where he learned his most valuable lessons about money and investing. Cramer said that unlike most people who became interested in the stock market, his love of stocks didn't start in college or even in high school. He said it was fourth grade when he first noticed how his father's mood would change based on whether his stocks were going up or down that day. That piqued his interest, he said. That started an investment education from dad that has stuck with him ever since. Cramer recalled how his father brought home the 1964 board game "Stocks & Bonds," manufactured by, of all companies, 3M (MMM), which drew him into the markets even further. It turned out stocks are a lot like his obsession with baseball since you're always on the lookout for which players are hot and which ones are not. What's the lesson from Cramer's elementary school days? Get your kids involved with money early in life and they may just play for life, which is a good thing since the stock market is a long-term game. It Pays to Save Cramer's next life lesson stemmed from his high school and college days and the first jobs that followed. He said the lesson is to always be saving, no matter how hard things are at the time. It was selling ice cream at Veterans Stadium in Philadelphia that taught Cramer his first lessons in business, he said, including how much money there was to be made by obtaining exclusive rights to sell something cold on hot afternoons in the upper decks. But it was Cramer's father who again helped him open an account at Fidelity to invest in mutual funds. Cramer said he put money away every week. That dedication to investing carried on after college, Cramer noted, even when his first job as a reporter was only paying him $156 a month. As he graduated into more lucrative jobs, ones that paid $179 a week, he continued the savings.

But Cramer's most challenging point was while in San Diego, after his apartment was robbed and he lost everything. He spent six months living out of his car while he rebuilt his life, but continued to put money away -- enough so that 35 years later those mutual funds total well into the six figures. Start Small

Cramer's next life lesson: Start small and do your homework. He recounted how he started his career as a stock picker in 1979, making his first trade in an orange grower in Florida. He bought 10 shares for a total of $9, he recalled. A week later, an early frost wiped out the orange crop and he lost 50% of his investment.

Not to be discouraged, Cramer said his next trade was in Bob Evans Farms (BOBE) after eating at one of its restaurants and doing a lot of homework on the company's outlook. That trade proved to be successful as the company had a good quarter and shares split shortly thereafter.

Cramer's lesson learned: Know what you own and why you own it. He didn't know anything about oranges, he admitted, but a good breakfast made sense to him. Cramer recalled an investment he made shortly thereafter in SPS Technologies, a company that made airplane fasteners, now part of Precision Castparts (PCP). He said a buddy had worked there and told him the company was hiring like mad. Cramer again did the homework and deduced that SPS was a win, especially with no news yet to be filed on the hiring binge. Combine what you know with what you can find out, he concluded. It's All in the Trade Cramer's next lesson was all about trading, something that has become more difficult over the years, he said, but that's also been helped along by low commission rates, readily available information and lightning fast trading. Cramer said that while in college he taught himself discipline by committing to coming up with one trading idea per week. That idea, he said, eventually made it into his "Mr. Bullish" newsletter, which he mailed to his parents every week. Eventually he put the tips onto his voicemail message as a sign of his commitment to his ideas.

That conviction, he said, enticed a friend to give him $500,000 to invest. Cramer said he promptly lost $70,000 of that money while learning another tough lesson: You can never invest big sums of money all at once. Stick with the companies you know and know why you like them, he said. With conviction and discipline that big sum will slowly start to grow. Remember Humility

He also learned lessons while trading at Goldman Sachs (GS). Cramer said he learned how to build a portfolio from the ground up, how to properly manage capital for the long term and the value of diversification. He learned how to explain investments in plain English, and about humility when things don't go your way.

Cramer reminded viewers that individuals can, and do, beat the markets regularly. But that's only accomplished by having solid ideas on which to build.

Trades shouldn't be turned into investments if things go south, nor should investments become trades if you rack up quick gains. Only by knowing why you own a stock will you know when it's time to sell, cut your losses or let your gains ride. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

4 Ways Americans Are Screwing Up Their Retirements

NEW YORK (TheStreet) -- U.S. workers, by and large, are an optimistic lot, choosing to see their coffee cup half-full rather than half-empty.

Sure, a soft economy and a sputtering job market have triggered concern, but ask an individual worker and chances are he or she will say the future will be better than the present and good times are just around the corner.

That optimism is also present when you ask U.S. adults about their finances, although data suggest that optimism may be moderately misplaced.

According to a study from Boston-based Natixis Global Asset Management, Americans "are optimistic" their money situation will improve by next year. And the vast majority of U.S. adults, as measured by the survey, say their retirement plans are on track to yield a good income in retirement. [Read: 5 Crucial Questions to Ask About Your Retirement] A closer look at the data says that is just not so. In fact, in many ways Americans may be getting in their own way on the path to a decent retirement. The Natixis study reveals four glaring (and not so glaring) omissions or mistakes being made with retirement plans: No plan. Despite an overwhelming sense that their financial futures are in order, less than half of all American workers have a financial plan for retirement. All told, 54% of Americans don't have one, and another 45% don't have clear financial goals, according to Natixis. Rose-colored glasses. The survey adds that even those workers with a financial plan may be "significantly underestimating the amount they will need in retirement." Natixis reports that most Americans say they will need 62% of their current yearly income to retire comfortably, even though firm analysts say 80% is a "commonly used" retirement income target by financial advisers. [Read: Why the Housing Recovery Doesn't Matter for Millions of Us ] Health care dichotomy. This one is more of a gray area, but Americans seem to be underestimating the impact of their health on their long-term finances. According to the survey, Americans say they will need five years worth of long-term care savings, yet 40% of Americans say LTC costs "not covered by insurance" are their largest financial roadblock in retirement. Not hitting the asset allocation mark. While 83% of U.S. investors say they want to find the right balance between safety and performance with their retirement savings, 65% say they "cannot decide" how to cover both issues. "This is particularly an issue for investors who are nearing retirement because interest rates on their savings accounts aren't generating enough income and they are reluctant to invest because volatility in the market presents more risk than they can bear," says John T. Hailer, chief executive of Natixis.

3D Printing Firm Scorched in New Short-Seller Report

As growth plays, it was hard to top 3D printer companies in 2013. For the three companies that were publicly traded for the whole year, shares were up from nearly 100% to nearly 175%. The largest gains were posted by 3D Systems Corp. (NYSE: DDD) but shares have been trending down in the first few weeks of the new year and took a sharp drop on Friday following the release of a new report from short-seller Citron Research.

Citron claims that 3D Systems' low-cost retail printing system — Cubify — has become a "complete bust" since its introduction early in 2013. The research firm notes that 3D Systems is particularly customer unfriendly, prohibiting returns for any reason, though offering to repair printers at no charge during the warranty period. Comparing customer reviews for the company's Cube printers to the MakerBot products offered by Stratasys Ltd. (NASDAQ: SSYS), Citron reports that only 2 of 10 Amazon reviews for Cube received 5 stars while more than half of MakerBot's 48 reviews garnered 5 stars.

Citron also notes that the company has made more than 40 acquisitions over the past three years, paying around a mere 2x revenues, while the company's own price-to-sales multiple was around 20. Following the announcement of an acquisition in December, 3D Systems' CEO said:

The stronger our marketplace leadership, the more powerful our economic model becomes. Simply put, a solidified position translates directly to higher revenue, higher profitability and greater earnings power over time, and we are willing to sacrifice short term earnings to get there faster.

That may be a workable strategy, but Citron argues that the low-hanging fruit is gone. Voxeljet AG (NYSE: VJET), which came public in late October, raised $400 million in its IPO, compared with a potential acquisition price by 3D Systems of around $60 million (2x Voxeljet's revenues at the time).

Here's how the four main U.S.-listed players in the 3D printing space look going forward.

Since the beginning of the year, 3D Systems has seen its share price drop by about 14% to close at $79.87 on Friday. The stock's 52-week range is $27.88 to $97.28 and the company's market cap is $8.21 billion. The consensus target price from Thomson Reuters is around $93.70, yielding a potential upside of 17% on the stock. 3D Systems' forward P/E ratio is nearly 63 and 17.7% of shares are held short.

Shares of Stratasys are down nearly 8% so far this year, closing at $121.31 on Friday. Stratasys is the second largest 3D printer with a market cap of $5.92 billion and the stock's 52-week range is $60.20 to $138.10. The consensus target price for the stock is around $143.20 for an upside potential of 18%. The company's forward P/E ratio is 54.2, and just 5% of shares are held short.

The ExOne Co. (NASDAQ: XONE) lost closed down 7.3% on Friday at $50.59 and the stock is down more than 16% since the beginning of the year. The company's market cap is $727.84 million and the stock's 52-week range is $23.50 to $78.80. The consensus price target is around $62.60 for an upside potential of 24%. Some 45% of ExOne's shares are held short and the company's forward P/E is over 180.

Voxeljet's shares tumbled 7.5% on Friday to close at $36.15 in a 52-week range of $19.30 to $70.00. The German company's market cap is just $361.5 million. The consensus target price on the stock is $52.20 yielding a potential upside of 44%. The stock's forward multiple is a whopping 361.5.

Sales of Existing Homes Near Two-Year High

The National Association of Realtors (NAR) reports that the seasonally adjusted annual rate of existing home sales in July rose 6.5% to 5.39 million from a downwardly revised total of 5.06 million in June. Sales are up 17.2% year-over-year for the month. The consensus estimate called for sales to reach 5.13 million.

Housing inventory rose again in July, up 5.6% to 2.28 million homes, which is equal to a supply of 5.1 months, unchanged from June. Listed inventory is down 5% year-over-year, when there was a 6.3 month supply available.

According to the NAR, the national median existing home price in July was $213,500, down from $214,200 in June, but up 13.7% compared with July 2012. That marks the 17th consecutive month to see a price gain and the seventh consecutive month of double-digit increases. The last time housing prices went on such a string of price increases was the period between January 2005 and May 2006.

NAR's chief economist said:

Mortgage interest rates are at the highest level in two years, pushing some buyers off the sidelines. The initial rise in interest rates provided strong incentive for closing deals. However, further rate increases will diminish the pool of eligible buyers.

Foreclosed and short sales accounted for 15% of July sales, the same as June sales, and below the 24% share in July 2012. Foreclosures sold at an average 16% discount to the July median price, while short sales sold at a discount of 12%. Both discounts were roughly equal month-over-month.

Existing, nondistressed homes were on the market for an average of 42 days, while foreclosed homes were on the market for an average of 50 days, and short sales took a median of 72 days to sell. These counts are all higher than they were a month ago.

The inventory of existing homes for sale continues to rise, although it is still below inventory levels of a year ago. The pace of growth in year-over-year has flattened out though.

Thursday Analyst Moves: Target Corporation, Coach, Inc., SanDisk Corporation, More (TGT, COH, SNDK, More)

Before Thursday’s opening bell, a number of big name dividend stocks were the subject of analyst moves. Below, we highlight the important analyst commentary for investors.

Stifel Downgrades American Eagle

American Eagle Outfitters (AEO) was downgraded from “Buy” to “Hold” at Stifel Nicolaus. The ratings company does not believe that the company’s turnaround is as visible as management has claimed. AEO has a dividend yield of 3.49%.

Dick’s Gets Downgrade

Morgan Stanley downgraded Dick’s Sporting Goods (DKS) to “Equal-Weight” due to a survey that suggests DKS could have increased competition in the near future. DKS has a dividend yield of 0.93%.

Oppenheimer Upgrades General Dynamics

General Dynamics Corporation (GD) was upgraded to “Outperform” from “Perform” at Oppenheimer due to the company repurchasing more stock and because GD’s Gulfstream acquisition has turned the corner. Oppenheimer has a price target of $119 on General Dynamics, which suggests that GD’s stock price could increase by 19.4%. GD has a yield of 2.25%.

Norfolk Southern Upgraded at Two Firms

Norfolk Southern (

Hot Gold Stocks To Buy For 2014

Earlier this week, the New York Post reported that high-end retailer Saks (NYSE: SKS  ) had brought in Goldman Sachs to explore a possible sale. The company also reported its first-quarter results, and is looking fairly strong. Comparable sales grew, and earnings per share�hit analyst expectations. The combination of quarterly results and sale rumors conspired to push the stock up 11% yesterday, and overnight it rose another 18%. Is this the right time for Saks to sell, and if so, what should investors be on the lookout for?

Saks on the auction block?
There are a few reasons that a firm would want to go private, but Saks' biggest motivating factor has to be its behind-the-scenes operation. Last quarter, operating margin dropped down to 7% from 8.6% the year before. Almost all of that fall came from an increase in selling, general, and administrative costs.

A prospective sale would likely involve a private equity firm looking to capitalize on Saks' strong name and solid fundamentals. That firm would likely cut back on employees and other costs, generating a quick increase in profit. Studies have shown that when private equity is involved in a public company takeover, employment drops by 10% within two years.

Hot Gold Stocks To Buy For 2014: Iamgold Corporation(IAG)

IAMGOLD Corporation, together with its subsidiaries, engages in the exploration, development, and production of mineral resource properties worldwide. It primarily explores for gold, silver, zinc, copper, niobium, diamonds, and other metals. The company holds interests in eight operating gold mines, a niobium producer, a diamond royalty, and exploration and development projects located in Africa and the Americas. Its advanced exploration and development projects include the Westwood project in Canada; and the Quimsacocha project, which consists of 3 mining concessions covering an aggregate area of approximately 8,030 hectares in Ecuador. The company was formerly known as IAMGOLD International African Mining Gold Corporation and changed its name to IAMGOLD Corporation in June 1997. IAMGOLD Corporation was founded in 1990 and is based in Toronto, Canada.

Advisors' Opinion:

• [By Eric Volkman]

  IAMGOLD (NYSE: IAG  ) might specialize in a precious metal, but it's continuing to pay its dividend in hard currency. The company has declared its latest semi-annual distribution at $0.125 per share of its common stock.

Hot Gold Stocks To Buy For 2014: CME Group Inc.(CME)

CME Group Inc. operates the CME, CBOT, NYMEX, and COMEX regulatory exchanges worldwide. The company provides a range of products available across various asset classes, including futures and options on interest rates, equity indexes, energy, agricultural commodities, metals, foreign exchange, weather, and real estate. It offers various products that provide a means of hedging, speculation, and asset allocation relating to the risks associated with interest rate sensitive instruments, equity ownership, changes in the value of foreign currency, credit risk, and changes in the prices of commodities. CME Group owns and operates clearing house, CME Clearing, which provides clearing and settlement services for exchange-traded contracts and counter derivatives transactions; and also engages in real estate operations. Its primary trade execution facilities consist of its CME Globex electronic trading platform and open outcry trading floors, as well as privately negotiated transact ions that are cleared and settled through its clearing house. In addition, the company offers market data services comprising live quotes, delayed quotes, market reports, and historical data services, as well as involves in index services business. CME Group?s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, producers, and governments. It has strategic partnerships with BM&FBOVESPA S.A., Bursa Malaysia Derivatives, Singapore Exchange Limited, Green Exchange, Dubai Mercantile Exchange, Johannesburg Stock Exchange, and Bolsa Mexicana de Valores, S.A.B. de C.V., as well as joint venture agreement with Dow Jones & Company. The company was formerly known as Chicago Mercantile Exchange Holdings Inc. and changed its name to CME Group Inc. in July 2007. CME Group was founded in 1898 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Eric Volkman]

  CME Group (NASDAQ: CME  ) is staying consistent for the moment in terms of shareholder payouts. The company has declared a dividend for its Q2 of $0.45 per share, to be paid on June 25 to shareholders of record as of June 10.�That amount matches CME Group's previous distribution, which was paid at the end of March.

• [By Sean Williams]

  Shares of future exchange operator CME Group (NASDAQ: CME  ) advanced 1.5% after being mentioned favorably on CNBC by commentator Simon Baker. While I normally would recommend paying little attention to the opinions of analysts, today's move could have more to do with the increasing volatility, given the move lower, which is very likely to increase futures contract volume. Sometimes, the worst of times brings about the best business for CME Group, and we could be seeing signs of that with today's big move higher.

• [By Steve Sears]

  Shares of Nasdaq OMX Group have gained 0.4% to $30.58 today, while CME Group (CME) has fallen 1.1% to $71.89, IntercontinentalExchange (ICE) has dropped 0.2% to $185.16, and NYSE Euronext (NYX) has ticked down 0.1% to $42.66.

5 Best Stocks To Invest In Right Now: Newmont Mining Corporation(Holding Company)

Newmont Mining Corporation, together with its subsidiaries, engages in the acquisition, exploration, and production of gold and copper properties. The company?s assets or operations are located in the United States, Australia, Peru, Indonesia, Ghana, Canada, New Zealand, and Mexico. As of December 31, 2009, it had proven and probable gold reserves of approximately 93.5 million equity ounces and an aggregate land position of approximately 27,500 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Hot Gold Stocks To Buy For 2014: First Majestic Silver Corp.(AG)

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns interests in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 69,867 hectares; and San Martin Silver Mine comprising approximately 7,841 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interests in Del Toro Silver Mine consisting of 393 contiguous hectares of mining claims and an additional 129 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi state; and Jalisco Group of Properties consisting of mining claims totalling 5,240 hectares located in Jalisco. The company was founded in 1979 and is headquartered in Vancouver, Canada.

Advisors' Opinion:

• [By Doug Ehrman]

  While many precious-metals companies have been in a slump of late, there is one that belongs perpetually in your portfolio: Silver Wheaton (NYSE: SLW  ) . The company is not like other miners -- including Pan American Silver (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) -- in that it has a unique business plan that insulates it against many of the vagaries of the mining business. Moreover, because silver will always have a significant industrial demand component, even with the heightened volatility you see in the silver market, maintaining exposure to silver is appropriate.

• [By Doug Ehrman]

  Despite the weakness seen in precious metals a few weeks ago, silver has been relatively stable ever since mid-April, with the iShares Silver Trust (NYSEMKT: SLV  ) trading in a dollar-wide range ever since. With the presidents of the Chicago and Philadelphia Federal Reserve banks��releasing conflicting statements, turmoil may be just around the corner. Miners like Pan American (NASDAQ: PAAS  ) and First Majestic (NYSE: AG  ) are still facing operating challenges, while silver streaming darling Silver Wheaton (NYSE: SLW  ) struggles as well.

Hot Gold Stocks To Buy For 2014: Northgate Minerals Corporation(NXG)

Northgate Minerals Corporation, together with its subsidiaries, engages in exploring, developing, processing, and mining gold and copper deposits in Canada and Australia. Its principal producing assets include 100% interests in the Fosterville and Stawell Gold mines in Victoria, Australia; and the Kemess South mine located in north-central British Columbia, Canada. The company was formerly known as Northgate Exploration Limited and changed its name to Northgate Minerals Corporation in May 2004. Northgate Minerals Corporation was founded in 1919 and is headquartered in Toronto, Canada.

Will Amazon and the X Files Mojo Beat Netflix?

When Netflix Inc. (NASDAQ: NFLX) first announced that it would produce its own content, there was a lot of concern that the fix to the company was being broken. It turns out that Chairman and CEO Reed Hastings won that argument and his shareholders have laughed all the way to the bank. Jeff Bezos of Amazon.com Inc. (NASDAQ: AMZN) is hoping to do some of the same by tying up the creator of the wildly popular ”The X Files” series.

A report from Deadline.com is signaling that ”The X Files” creator Chris Carter has an order from Amazon Studios for a pilot show called “The After.” The thriller is said to take place around the apocalypse, but outside of that we will leave it to the entertainment websites to expand upon.

Reed Hastings scored with Kevin Spacey and “House of Cards.” This may have even led to a recovery model for old media and new media ahead. The show was linked as a driver to increase Netflix subscriptions, and it did well enough that a second season is already under production.

Jeff Bezos may have turned the media world upside down with his personal purchase of the Washington Post newspaper. Now for Amazon shareholders there is Amazon Studios. It already has a first-look deal with Warner Bros. Pictures.

Here is where the discourse may come into play, or maybe where the opportunity is. Netflix and Amazon may look identical to an unwary stock buyer. Netflix shares are at $275 and Amazon shares are just above $280. That is where the common issues part.

Amazon.com is running a near-zero margin business right now as Jeff Bezos tries to take over every aspect of retail that he can get his grasp on in the coming years. He has to be sacrificing margin for growth out to 2016 or maybe even 2020. The goal has to be for incremental gains here with the Studio business, because Amazon has a market cap of $128 billion or so and it is expected to have annual sales of close to $90 billion already in the year 2014. Amazon also trades at more than 100-times expected 2014 earnings and has close to $7.5 billion in cash and short-term securities.

The valuation of Netflix is entirely different from Amazon. Netflix has a market cap of about $16 billion. It is expected to have sales of just over $5 billion in 2014. Its stock also trades at about 83-times forward earnings based upon the same 2014 earnings consensus from Thomson Reuters. Netflix has close to $1.1 billion in cash and short-term securities.

The reality is that a serious hit could garner far more in relative upside for Netflix than it would seem to for Amazon. That being said, Jeff Bezos is on a mission to dominate almost anything and everything. Cost sure seems to be no issue.

Hot Low Price Companies To Invest In 2014

With shares of Amazon�(NASDAQ:AMZN) trading around $356, is AMZN an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework.

T = Trends for a Stock’s Movement

Amazon serves its customers through its retail websites and focus on selection, price, and convenience. The company also manufactures and sells Kindle devices. Amazon offers programs that enable sellers to sell their products on the company�� websites, including the sellers��own branded websites, and fulfill orders through them. Amazon also provides platforms that allow authors, musicians, filmmakers, app developers, and others to publish and sell content. Online commerce has been on the rise because of the convenience, efficiency, and relatively low prices offered.

Jim Cramer recently ranked Amazon a Buy. Cramer previously ranked this stock a Buy on October 29. The stock�� 52-week high is $368.40, and its 52-week low is $218.18. Cramer said that Amazon will be a stock that many hedge fund managers who are looking to play catch-up will be trying to add to their portfolios as the year�� end nears. Because it is results that many on Wall Street are looking for on a shorter-term time frame, some names will lose momentum, but Amazon will be a company that will win out this holiday season, Cramer implied.

Hot Low Price Companies To Invest In 2014: Amazon.com Inc.(AMZN)

Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Web sites, including amazon.com and amazon.ca. The company serves consumers through its retail Web sites and focuses on selection, price, and convenience. It also offers programs that enable sellers to sell their products on its Web sites, and their own branded Web sites. In addition, the company serves developer customers through Amazon Web Services, which provides access to technology infrastructure that developers can use to enable virtually various type of business. Further, it manufactures and sells the Kindle e-reader. Additionally, the company provides fulfillment; miscellaneous marketing and promotional agreements, such as online advertising; and co-branded credit cards. Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington.

Advisors' Opinion:

• [By Mark Kowalski]

  This decrease may be partially offset as Wal-Mart continues to roll out its new E-Commerce Expansion to compete with rival Amazon (AMZN). With the increase in online order fulfillment centers, and strategies are being tested involving using existing stores as fulfillment centers, Wal-Mart is developing a strong new potential to help push its U.S. sales base.

Hot Low Price Companies To Invest In 2014: Green Dot Corporation (GDOT)

Green Dot Corporation operates as a bank holding company. It offers general purpose reloadable prepaid debit cards, and cash loading and transfer services in the United States. The company�s products include Green Dot MasterCard, Visa-branded prepaid debit cards, and various co-branded reloadable prepaid card programs; Visa-branded gift cards; and MoneyPak and swipe reload proprietary products that enable cash loading and transfer services through its Green Dot Network. Its Green Dot Network enables consumers to use cash to reload its prepaid debit cards or to transfer cash to any of the company�s Green Dot Network acceptance members, including competing prepaid card programs, and other online accounts. The company markets its cards and financial services to banked, underbanked, and unbanked consumers. Green Dot Corporation offers its products and services through retail distributors, including mass merchandisers, drug store and convenience store chains, and supermarket chains; the Internet; and relationships with other businesses. Its prepaid debit cards and prepaid reload services are available to consumers at approximately 60,000 retail locations nationwide and online at greendot.com. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of Green Dot (NYSE: GDOT  ) , a money management solutions company known for its prepaid debit cards and payment transfer solutions, charged higher by as much as 12% after reporting better-than-expected first-quarter results.

• [By Jane Edmondson]

  Green Dot (GDOT), a Pasadena, CA-based company, is a leading provider of prepaid MasterCard (MA) and Visa (V) debit cards. Green Dot products are sold in more than 60,000 retail locations including drug stores, grocery stores, convenience stores, and discount department stores. The company also has a discounted offering available exclusively through Wal-Mart (WMT).

• [By Rich Smith]

  This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include upgrades for both Denny's (NASDAQ: DENN  ) and Green Dot (NYSE: GDOT  ) . But stocks can reach buy ratings in ways other than actual upgrades. So before we get to those two, let's first take a quick look at why ...

• [By Sean Williams]

  But not every prepaid company offered what TSYS was looking for. Green Dot (NYSE: GDOT  ) , for example, directly competes with NetSpend, but has a good chunk of its revenue tied solely to Wal-Mart. With the introduction of new competitors within Wal-Mart, Green Dot was left scrambling for new retail outlets last summer and has yet to fully recover. TSYS made the wiser decision to scoop up the pricier NetSpend, which had considerably better retail outlet diversity.

Top Energy Stocks To Invest In Right Now: New Energy Technologies Inc (NENE)

New Energy Technologies, Inc., incorporated on May 5, 1998, is a development-stage company. The Company is engaged in renewable and alternative energy business. The Company conducts its operations through two wholly owned subsidiaries: Kinetic Energy Corporation (KEC), Sungen Energy, Inc. and New Energy Solar Corporation (New Energy Solar). The Company focuses on the development of two technologies: MotionPower Technology for capturing the kinetic energy of moving vehicles to generate electricity, and SolarWindow Technology, which enables see-through glass windows to generate electricity by spraying glass surfaces with its electricity-generating coatings to their glass surface. It has filed 10 patent applications for inventions related to its MotionPower Technology and one for its SolarWindow Technology. As of June 21, 2012, it had no commercial products. As of June 21, 2012, the Company had no revenues.

SolarWindow

The Company�� SolarWindow products in development are designed to generate electricity on glass while remaining see-through. It has six product development goals for its SolarWindow technology: SolarWindow - Commercial, which is a flat glass product for installation in new commercial towers under construction and replacement windows; SolarWindow - Structural Glass, which is a structural glass walls and curtains for tall structures; SolarWindow - Architectural Glass, which is a textured and decorative interior glass walls and room dividers; SolarWindow - Residential, which is a window glass for installation in residential homes under construction and replacement windows; SolarWindow - Flex , which is a film which may be applied directly onto glass, similar to aftermarket window tint films, for retrofit to existing commercial towers, buildings, and residential homes; and SolarWindow - BIPV, which is a building product components associated with building-integrated-photovoltaic (BIPV) applications in homes, buildings, and office towers.

MotionPower

MotionPower products are designed to generate electricity from the capture and conversion of available kinetic energy into electricity, which is present in vehicles which are slowing down before stopping. It is developing three MotionPower products: MotionPower - Heavy, which is a fluid-driven, system with limited moving mechanical components for installation at sites where big rigs, such as tractor trailers, buses, and commercial vehicles are traveling at below 15 miles per hour and are in the process of slowing down; MotionPower - Auto, which is a fluid-driven, system similar to MotionPower - Heavy for installation at sites where cars and light-duty trucks, such as sport utility vehicles and automobiles, are traveling at below 15 miles per hour and are in the process of slowing down; and MotionPower - Express, which is a mechanical system for installation at sites where all cars, light-duty trucks, motor homes, buses, big rigs, and commercial vehicles are traveling faster than 15 miles per hour and are in the process of slowing down.

The Company competes with Konarka Technologies, Inc., XsunX, Inc. and Sharp Corporation.

Hot Low Price Companies To Invest In 2014: UnitedHealth Group Incorporated(UNH)

UnitedHealth Group Incorporated provides healthcare services in the United States. Its Health Benefits segment offers consumer-oriented health benefit plans and services to national employers, public sector employers, mid-sized employers, small businesses, and individuals; and non-employer based insurance options for purchase by individuals. It also provides health and well-being services for individuals aged 50 and older; and for services dealing with chronic disease and other specialized issues for older individuals, as well as health plans for the beneficiaries of acute and long-term care Medicaid plans. This segment offers its services through a network of 730,000 physicians and other health care professionals, and 5,300 hospitals. Its OptumHealth segment provides health, financial, and ancillary services and products that assist consumers through personalized health management solutions; benefit administration, and clinical and network management; health-based financi al services; behavioral solutions; and specialty benefits, such as dental, vision, life, critical illness, short-term disability, and stop-loss product offerings. The company?s Ingenix segment offers database and data management services, software products, publications, consulting and actuarial services, business process outsourcing services, and pharmaceutical data consulting and research services. Its Prescription Solutions segment provides integrated pharmacy benefit management services comprising retail network pharmacy contracting and management, claims processing, mail order pharmacy services, specialty pharmacy, benefit design consultation, rebate contracting and management, drug utilization review, formulary management programs, disease therapy management, and adherence programs to employer groups, union trusts, managed care organizations, Medicare-contracted plans, Medicaid plans, and third party administrators. The company was founded in 1974 and is based in Minne tonka, Minnesota.

Advisors' Opinion:

• [By Dan Caplinger]

  Understanding Aflac
  Aflac has done an excellent job of carving out a lucrative niche for itself in the U.S. insurance industry, with its focus on supplemental insurance that provides additional coverage beyond what traditional carriers provide. For instance, major health insurers UnitedHealth (NYSE: UNH  ) and WellPoint (NYSE: WLP  ) offer broad-based insurance coverage that forces them to take on a huge amount of risk and almost eliminates their ability to customize policies to respond to changes in demand for certain services. That reduces their opportunity to shift their business focus to capitalize on changing trends. By contrast, Aflac can target more lucrative niche offerings, such as coverage for cancer and other specified diseases, accident coverage, and short-term disability policies. Moreover, with such finely carved-out coverage, it's easier for Aflac to adjust rates to reflect specific loss experience.

• [By Dan Caplinger]

  But a few Dow stocks didn't join in the celebration. The biggest decliner was UnitedHealth (NYSE: UNH  ) , which dropped more than 1% on news from the Congressional Budget Office that Obamacare might bring in a smaller number of uninsured Americans onto insurance company rolls through subsidies or expansions of Medicaid expansions than previously expected. With states no longer having to participate in Medicaid expansion, the estimate has fallen by more than a quarter since early CBO estimates two years ago, and that's bad news for insurers that have hoped that more customers would offset higher costs under Obamacare's other provisions.

• [By Brandy Betz]

  And it was the reversal of a seemingly adverse change behind a health plans rally last week. After an unfavorable government reimbursement decision for Medicare Advantage plans was reversed, shares of Humana (NYSE: HUM  ) and UnitedHealth Group (NYSE: UNH  ) surged to finish up 13% and 9% for the week, respectively.

Hot Low Price Companies To Invest In 2014: Signet Group(SIG.L)

Signet Jewelers Limited operates as a specialty jewelry retailer in the United States, the United Kingdom, the Republic of Ireland, and the Channel Islands. The company retails jewelry, watches, and associated services. As of January 28, 2012, it operated a network of 1,318 stores in 50 states in the United States that trade nationally in malls and off-mall locations as ?Kay Jewelers?, and regionally under various mall-based brands, as well as operated as destination superstores under the ?Jared The Galleria Of Jewelry? trade name. The company also operated a network of 535 stores in the United Kingdom, including 14 stores in the Republic of Ireland and 3 in the Channel Islands under the ?H.Samuel?, ?Ernest Jones?, and ?Leslie Davis? trade names in high street locations and shopping malls. Signet Jewelers Limited was founded in 1950 and is based in Hamilton, Bermuda.

Hot Low Price Companies To Invest In 2014: Ebix Inc(EBIX)

Ebix, Inc. provides on-demand software and e-commerce solutions to the insurance industry. The company operates data exchanges, which connects multiple entities within the insurance markets and enables the participant to carry and process data from one end to another in the areas of life insurance, annuities, employee health benefits, risk management, workers compensation, and property and casualty (P&C) insurance. It is also involved in designing and deploying broker systems comprising three back-end systems consisting of eGlobal for multinational P&C insurance brokers; WinBeat for P&C brokers in the Australian and New Zealand markets; and EbixASP for the P&C insurance brokers in the United States. In addition, the company offers business process outsourcing services, which include certificate origination, certificate tracking, claims adjudication call center, and back office support. Further, it focuses on designing and deploying on-demand and back-end carrier systems, s uch as Ebix Advantage and Ebix Advantageweb targeted at small, medium, and large P&C carriers in the United States and internationally that operate in the personal, commercial, and specialty line areas of insurance. Additionally, Ebix, Inc. provides software development, customization, and consulting services to various companies in the insurance industry, such as carriers, brokers, exchanges, and standard making bodies. The company was formerly known as Delphi Systems, Inc. and changed its name to Ebix, Inc. in December 2003. Ebix, Inc. was founded in 1976 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:

• [By John Reese]

  Indeed, in 2013, the Greenblatt-based portfolio has bounced back strong, returning more than 50%. Below is a look at its current holdings.

  EBIX, Inc. (EBIX)
  
  Western Refining (WNR)
  
  DirecTV (DTV)
  
  ITT Educational Services (ESI)
  
  Science Applications International (SAIC)
  
  Weight Watchers International (WTW)
  
  ConocoPhillips (COP)
  
  AmSurg Corp. (AMSG)
  
  PDL BioPharma (PDLI)
  
  AFC Enterprises (AFCE)
  
  

  Subscribe to Validea here��/p>

• [By Caroline Bennett]

  Ebix's� (NASDAQ: EBIX  ) latest earnings call�revealed�a 6.9% decrease in the company's quarterly revenue, dropping from $53.8 million in Q3 2012, to $50.3 million.�

• [By John Udovich]

  Small cap NASDAQ stocks Vera Bradley, Inc (NASDAQ: VRA), Ebix Inc (NASDAQ: EBIX) and Synta Pharmaceuticals Corp. (NASDAQ: SNTA) had the highest short interest as of late September according to HighShortInterest.com with short interest of 57.46%, 52.28% and 47.09%, respectively. However, shorting a stock can be a dangerous business as the bears can and do sometimes get mauled by the bulls. With that in mind, let�� take a look at why the bulls or the bears may be right or wrong about these three shorted small cap stocks:�

Microsoft To Buy Nokia's Mobile Business For $5B

Less than two weeks after Microsoft Microsoft announced its CEO was set to retire, the company has announced another sweeping change: it's buying Nokia Nokia's storied handset business for 3.79 billion euros ($5 billion), licensing its patents and boldly challenging Samsung and Apple in the battle to win the global smartphone market.

The announcement brings an end to Nokia's three-decades-long adventure selling mobile phones, as well as speculation about a future sale to Redmond, dating back to the moment Nokia announced a former Microsoft executive, Stephen Elop, would take the reins in September 2010. That speculation intensified five months later when Elop announced a strategic partnership between Nokia and Microsoft, in which Nokia would use Windows Phone as its primary operating system.

Microsoft said Monday that Elop would now step down as CEO of Nokia and return to Microsoft as vice president of the company's "devices" team.

It added that the transaction would see Nokia's flagship Lumia brand of smartphones and the low-cost Asha line, transfer to its ownership. The acquisition would close in the first quarter of 2014, subject to approval by Nokia's shareholders and regulators, and be "significantly accretive" to earnings.

Nokia will hold a press conference Tuesday, Sept. 3, at 11am local time in Finland, and an extraordinary-shareholders' meeting on Nov. 19th.

"It's a bold step into the future – a win-win for employees, shareholders and consumers of both companies," Microsoft's outgoing chief executive, Steve Ballmer, said in an official statement. History may look back on the deal as Ballmer's swan song.

Forbes contributor Tero Kuittinen called Nokia's price tag "shockingly low," considering that the company's Lumia range has gained some traction recently; it sold roughly 7.4 million units in the second quarter of 2013. But he points out that the company's Asha range of low-cost phones may have come under pricing pressure from cheaper Android phones being shipped to emerging markets.

The $5 billion price tag for Nokia's handset unit is indeed less than the $8.5 billion in cash that Microsoft paid for Skype in 2011.

At the close of the transaction, Microsoft expects approximately 32,000 people from Nokia to become its employees, including 4,700 people in Finland and 18,300 people "directly involved in manufacturing, assembly and packaging of products worldwide." The company said these transferring operations generated roughly 14.9 billion euros ($19.7 billion) or about half of Nokia's net sales for fiscal year 2012.

The remnants of Nokia will be effectively be a telecoms equipment company. It will retain ownership of the company's patent portfolio, and license them to Microsoft for a 10-year period, as part of a separate, $2.2 billion patent deal. Microsoft will also license technology from Nokia's proprietary mapping platform, known as HERE, for four years.

Microsoft is additionally granting Nokia a 1.5 billion euro ($2 billion) loan in the form of convertible notes, which Microsoft says it will fund from "overseas resources."

Microsoft had reportedly come close to buying Nokia's mobile business earlier this year, but the talks are said to have fallen through.

UPDATE, Sept. 2 21:56 PST: Steve Ballmer sent the following e-mail out to Microsoft employees about two hours ago:

From: Steve Ballmer
To: MS FTEs
Date: Sep. 2, 8:00 PM PDT (Sep. 3, 6:00 AM EET)
Subject: Accelerating Growth

Impact of Currency Pressures

The potential cutback in Fed bond buying has caused major pressure on emerging market currencies and MoneyShow's Jim Jubak explains the implications for investors.

As crises go, the Bernanke Bubble/emerging markets meltdown doesn't come close to layman or anything like that, but it is a major vent for the markets and it's still developing, so for the week ahead I'm going to try to tell you what to watch.

Okay, here's what's going on. When the fed and other central banks did their big quantitative easing programs, they produced a lot of money by buying treasuries and other bonds to put that into the market. Not all that stayed in the United States. In fact, a lot of it didn't because people were looking for higher rates, so in 2012, about 1,200,000,000,000 of that, in fact, went into emerging markets. Now the fed has said they're going to taper off this program. No one knows exactly when. Money is coming back to the United States and leaving the emerging markets. So far in 2013 we've had about, just using ETFs, electronically traded funds, as an example, we've had about 95,000,000,000 float into US stock ETFs and about 8,400,000,000 flow out of emerging markets, so that gives a sense that the cash flow has reversed. This is a problem because it also means that you've got money coming out of countries with big current account deficits. They need the inflow of foreign capital to balance it. Turkey needs about $5,000,000,000 a month, not getting it right now. That puts the pressure on currencies such as the Turkish lira, the Indian rupee, and the Indonesian rupiah. All these currencies are under pressure. They're sinking like a stone. Some of them are back to where they were in 2009. Some of them are back even further. As those currencies fall, it means that you've got a possibility of inflation in those countries because imported goods are more expensive.

One of the things, you've got a lot of companies that loaded up on US dollar denominated debt during the Bernanke Bubble because dollar denominated debt was cheaper. Now they're going to have to pay that debt back in more expensive dollars, so you've got central banks in India, Turkey, and Indonesia intervening and trying to keep their currency from sinking too far. On the other hand, if you're a net current account country running a deficit you don't have a whole lot of foreign exchange. You can't do it forever, so you're watching these central banks decide that they're going to raise interest rates as a way to prop up their currency, which, of course, then has the problem that probably slowed rates, they're going to slow growth, growth is already slowing, so you can see where this is all going. You can see that you've got currencies under attack, which means that stocks are going down; bonds are going down in price in these countries, which of course makes the currencies under attack more, the possibility of slower growth rate, which again makes the currencies less valuable. It makes the financial markets less, assets, drives down those prices. All this is sort of unwinding. It's a question of how far it goes since no one knows exactly when the fed is going to start to taper. It's very hard to pick a bottom, but you've seen tremendous swings. The Indian rupee has been 40 to a dollar. It's now up near 65, so all this is still unwinding. You're still seeing a lot of people just sort of just catching up to it and going oh okay now I'm going to start pulling my money out. We haven't yet seen the final capitulation in a lot of these markets. I think that's still to come.

Basically, right now when most people are at the beach in August, most people in the United States go to the beach in August, you've got this huge international crisis going on. Not a lot of people are focused on it. You need to take a look at your portfolio. It's always better in one of these crises to sell early rather than late. I think you're sort of middle of the crisis, so it's worth selling some stuff now if you think you've got stuff that's really, really exposed and I look at countries with big current account deficits for places to sell. South Africa, Brazil, Indonesia, India, and Turkey would be the five markets I think that are most exposed and the ones to watch in the week ahead.

This is Jim Jubak for the Moneyshow.com Video Network.