Benjamin Shepherd

Editor: Global ETF Profits, Louis Rukeyser’s Mutual Funds and Louis Rukeyser's Wall Street

Research Editor: Personal Finance

Benjamin Shepherd, editor of Louis Rukeyser’s Mutual Funds and Louis Rukeyser’s Wall Street, focuses on time-tested mutual fund managers and investment strategies which have proven themselves in both bull and bear markets. He and his team spend hours every month discussing the state of the global economy and the markets with many of the best known and well-respected money managers in the industry. They then distill that wisdom and their own analysis into twelve pages of actionable advice geared towards generating returns while preserving capital for both mutual fund and stock investors. Mr. Shepherd is also associate editor of Personal Finance, one of the world’s most widely-read investment newsletters, contributing his knowledge of the fund industry to the newsletters ongoing commentary.

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Content Posted by Benjamin Shepherd

Investing in Bonds: Mitigating Interest Rate Risk

In these uncertain times, interest-rate risk is an important consideration when structuring your fixed-income portfolio. Here are two strategies to mitigate these concerns.

Energy Consumption: China versus the US

China may have surpassed the US in terms of energy consumption, but US domestic demand still plays a major role in global energy prices.

Index Funds: Four ETFs, Four Ways to Play the S&P 500

One of the unique attributes of exchange-traded funds is that managers have freedom to craft strategies to mimic--or even outperform--major indexes.

Solar Power's Dimming Prospects

President Obama's new loan guarantees for solar projects gave two alternative energy ETFs a healthy short-term bounce. But the long-term picture is far from sunny.

Price Wars

Charles Schwab, Fidelity and Vanguard are engaged in a price war that promises to make it even cheaper for ETF investors to build their portfolios.

Should US Investors Bet on China's Currency Reform?

After years of an artificially low peg, the Chinese have pledged to allow the yuan to appreciate gradually and to reform its exchange-rate policies to make the currency more flexible.

Assets Show the Way

Exchange traded funds (ETF) are outperforming mutual funds and money market funds.

Goin' Nuclear...Again

In the Global ETF Profits  advisory that I co-edit with Benjamin Shepherd, we have exposure to the sector through the best available ETF. Here are Ben’s macro thoughts on nuclear power, as well as a recommendation.

Competition's Growing

Investors continue to develop an understanding of ETF products and the varied roles they can play in portfolios and that has drawn the attention of managers. Through April, more than $16 billion in new cash was added to ETFs.

Caught in the Crossfire

ETF Securities (ETFS) has laid down a gauntlet with its recent filing to add 18 new commodity funds to its US lineup. The funds propose to use a special type of swaps contract to greatly improve the tax efficiency of commodity ETFs.

Australia's Super Tax Meets Aussie ETFs

There’s been a lot of consternation when, after posting surging returns for most of 2009, the bottom fell out of the Australian markets after the government proposed a 40 percent super tax on the resource sector.

Spend, Spend, Spend

Consumer activity drives about 70 percent of the US economy, making a recovery in consumer spending the primarily driver of improvement all along the US value chain. But how much improvement can we really expect to see with elevated unemployment and little access to lending?

Confusing Micro with Macro

The media is laying most of the blame for Thursday’s troubles on the keyboard of a fat fingered trader at Citigroup (NYSE: C) who accidently placed a sell order on billions of Proctor & Gamble (NYSE: PG) shares instead of millions. There’s also evidence of problems in trading of Accenture (NYSE: ACN) and a number of other securities.

Shifting Sentiment

I always have hedges, and I include a hedge portfolio in my Global ETF Profits service. But most investors don’t think about hedges until a market decline is already well underway. If you fall into that camp or maybe just aren’t sure where to begin, there are a couple ways you can cushion your portfolio against shifting sentiment.

Goodbye Ryder SGI, Hello New Banking and Metals ETFs

If you’re holding shares in one of the funds that fail to catch on, you’ll find yourself scrambling to find another fund that fills that niche in your portfolio. You might also get stuck with an unexpected tax bill on any gains you might have, since liquidations count as taxable events.

Poker Face

Exchange traded funds (ETF) have a lot going for them—more diverse than a single stock, more dynamic than a mutual fund, great liquidity for hedge and trading positions.

The Domestic Demand Side of China

China’s GDP grew a massive 11.9 percent in the first quarter of 2010. A major contributor to that rapid growth was the nation’s huge stimulus program, that was dispersed much more quickly the US version. What's more, the monies stayed in China, boosting Chinese businesses.

ETFs, Derivatives and the Future

ETFs represent a challenge to mutual funds' dominance of the retirement-vehicle industry. They also provide efficient ways for individual investors to get exposure to stocks, bonds, commodities and even hedge-fund type strategies.

ETFs, Palladium and Platinum

An ETF is great way to buy commodities such as gold, silver, palladium and platinum. And new funds make it easy to access growth stories in Canada and Australia.

Real Progress

Most of the innovation that comes out of Wall Street is more about fee harvesting than anything else, but the exchange-traded fund (ETF) phenomenon is one case where creativity has actually benefited investors.

Triple Witching

A triple witching weighed on markets this week, but the US economy continues to improve--albeit sluggishly.

Building Wealth

Although infrastructure was the primary focus of China’s recent stimulus efforts, that bump in spending represents a drop in the bucket over the long haul.

Two Anniversaries

This week marked two anniversaries, a reminder of of how far markets have fallen and how well they've recovered. But the week's real stories centered around consumer debt and US exports.

Were the Week's Big Gains a Snow Job?

Stocks rallied in the wake of February's jobs report, but some analysts question whether inclement weather paradoxically produced signs of a false spring.

Tightening the Screws

The so-called "Volcker Rules" weighed on markets this week, though lackluster economic data didn't help matters.

Renewed Inquisition

Financials endured a particularly tough week. The modern-day Pecora Commission, now known as the Financial Crisis Inquiry Commission (FCIC), started its work on Wednesday by grilling the captains of the financial industry.

In Like a Lion

Although heavier-than-expected job losses in December 2009 weighed on market sentiment, this disappointment belied marked improvement.

Limitless Credit Likely Means Little

Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) surged this week after the government annouced that it will remove caps on how much emergency aid the ailing mortgage companies can receive.

Still on Track

Economic growth showed signs of slowing, but that's no reason to turn pessimistic.

Where's the Love?

Stocks treaded water despite a number of positive data points.

Restocked Shelves

In light of restocking and other positive data, last week’s spike in unemployment claims appears reflect seasonal issues rather than any newfound business weakness.

New Beginnings and Old Rules

As we head into both a new decade and a new normal, don’t forget that the traditional rules of the road still apply.

The Visible Hand

By and large, any signs of recovery aren't the invisible hand of market forces self-correcting; that’s Uncle Sam wielding a really big stick

Deficits and Small-Cap Stocks

It’s looking as though the run in small caps may finally be losing steam; investors appear to be favoring larger multinationals that should continue to generate dependable earnings, even if inflation kicks up.

The Ultimate Insurance

India’s central bank bought 200 tons of the gold from the International Monetary Fund; the US unemployment rate has broken 10 percent for the first time since 1983; and the Federal Open Market Committee is continuing to hold interest rates at or near zero. All of these factors add up to higher gold prices.

Getting Off on a Technicality

Yesterday’s euphoria over a better-than-expected GDP reading gave way to reality after today’s release of sobering consumer spending data.

Taking the Good with the Bad

Markets posted strong gains early in the week amid better-than-expected earnings, but lost steam as economic data served as a reminder of the economy’s trouble spots.

Dollars and Chips

The Dow Jones Industrial Average broke 10,000 this week for the first time in just over a year as both JP Morgan Chase (NYSE: JPM) and Intel (NSDQ: INTC) reported better- than-expected earnings. The banking giant earned 82 cents per share in the third quarter, while Intel’s earnings beat analysts’ expectations by $1 billion.

Earnings Season off to a Good Start

Alcoa (NYSE: AA) kicked off earnings season with some good news, but stocks could be volatile next week depending on how some key names fared in the third quarter.

Ups and Downs

Economic data provided plenty of ups and downs this week. Here are the highlights.

Improving Real Estate Fundamentals

Real estate markets showed continued signs of improvement, with the government’s home price index data released Tuesday up 0.3 percent in July.

[video] Ben Shepherd - Mutual Funds

Investors of all stripes can use mutual funds to their advantage. But in many cases the asset managers that actually run the fund are excellent investment options in it of themselves.

Another Solid Week

The economy appears to be on the mend, though inflation remains a threat.

Rising Expectations

As signs continue to point to recovery, the question of inflation becomes more pressing.

Cash Reserves

Although the overall recovery won’t be as strong as many hope, there are sectors to watch for opportunities.

Pushing Up

Signs that the economy is recovering continue to mount, but the specter of health care reform continues to haunt share prices in that sector.

Looking Abroad

Nevertheless, it will take quite some time for the US economy to swing back to growth. In that climate, savvy growth-oriented investors will invest overseas. I Recently discussed foreign opportunities with Jesper Madsen, manager of Matthews Asia Pacific Equity Income (MAPIX) in Louis Rukeyser's Wall Street.

The Optimism of Reform

Congress has adjourned for the summer, leaving the health care reform debate unresolved until at least September. That uncertainty continues to weigh on health care sector, which had lived up to its defensive reputation and benefited from the flight to quality that occurred last year. But this recent weakness marks an opportunity for investors.

Fundamentals

Sentiment isn't always reality, and there are still plenty of businesses making money even if profit growth has slowed. Tim Hartch and Michael Keller, so-managers of BBH Core Select N (BBTEX), tell us about the strategy that propelled their fund into the top 1 percent of the core blend category last year.

Junked Returns

At least one industry should thrive in coming months, with the Consumer Assistance Recycle and Save Act of 2009, better known as Cash for Clunkers, going into effect today. The program will be providing vouchers of $4,500 for consumers to put toward the purchase of more fuel efficient vehicles when making a trade-in.

Junked Returns

At least one industry should thrive in coming months, with the Consumer Assistance Recycle and Save Act of 2009, better known as Cash for Clunkers, going into effect today.

Rolling Stock

The Dow Transports will be among the first groups to respond to an economic recovery. Here’s how to profit.

Taking off the TARP

Outside of Goldman Sachs and JPMorgan Chase, bank earnings have proved a mixed bag so far this quarter. I examine the financial sector's prospects and highlight two of my favorite banks.

Balancing Act

After an impressive rally, the markets appear to be taking a breather--a welcome break at these levels. Although the US economy has stabilized, uncertainty still abounds; new proposals that would increase businesses' tax liabilities won't help.

Across the Street

Two top investing experts tell us what to buy now.

Silk Road to Income

Income investing is trickier these days; maybe it's time to look abroad.

Harvesting Profits

The fundamentals of food haven't changed.

On the Rebound

This beaten down bond fund still has potential.

Since You Asked

Dental Supplies, Discount Retailers and Banks.

The New Consumer

Believe it or not, the consumer isn't dead.

Too Little, Too Late

The Treasury Dept's Public-Private Investment Program is finally slated to get underway, but is it necessary and should US taxpayers be footing the bill?

Diving for Dollars

Three investments for when the dollar dives.

Harnessing Earth's Power

Regardless of what you think about global warming, countries worldwide will generate more of their energy from alternative sources. And this trend should generate handsome profits for canny investors.

Values and Profits

Benjamin Bailey and Delmar King discuss bubbles and values-based fixed income investment.

Alternatives Revisited

We’re not particularly fond of funds that try to implement hedge fund-like strategies in an open-ended fund structure. But that doesn’t mean they’re all bad--in fact, some are quite good at delivering the results they promise.

Innovative Returns

You may not have a Facebook page or know how to send a tweet, but technology is changing the way the world communicates. In fact, the US State Dept recently asked Twitter to delay a system upgrade because posts from Iran proved to be a valuable intelligence resource. Here’s how to leverage those sorts of technologies in your portfolio.

Other People's Money

Leverage almost brought down Wall Street. But even while markets tanked last year, leveraged funds enjoyed huge inflows as investors bet the decline would continue. From a long-term investor's perspective, most of these funds miss their targets.

You Can't Spend What You Don't Have

Can the economy recover without a jump in consumer spending?

The New Consumer

Consumers are cutting spending and saving more, but this isn’t a death knell for retailers. Here’s how to profit from a more frugal consumer.

Unconventional Value

Kevin O'Brien, co-manager of Prospector Opportunity (POPFX) discusses his approach to analyzing financial stocks and some of his favorite plays

Circling Low

This fund flies like a vulture.

Playing Afield

Join the foreign legion with these bond funds.

Other People's Money

The power of leverage.

Keep on Trucking

General Motors lives to fight another day thanks, but some individual bondholders were crushed by the hand that feeds it. We examine what some consider a dangerous precedent.

Bottom Dollar Groceries

Cash in on growing demand for cheap groceries.

Inflation Booming

There continue to be signs of green shoots sprouting in the economy.

Inflation Booming

There continue to be signs of green shoots sprouting in the economy.

Financial Spoils

There’s more to the financial sector than broken down banks.

Renewable Alternatives

China could easily surpass Europe, Japan and the US by 2010 as the world’s largest consumer of renewable energy. And that not only needs to happen  but that has to happen given China’s energy consumption has more than trebled in just over three decades. Much of the country’s rapid economic growth is fueled by cheap abundant power and low-cost labor.

The 401(k) Two-Card Monte

Talk of shenanigans at big fund families running 401(k) plans has been leaking out of The Street. This month we've asked a well-known guest commentator for his take on how to cover your assets.

Ignore the Noise

We talk with Tim Hartch and Michael Keller about tuning out the data.

Avoid the Limelight

The best funds often fly below the radar. This fund manager may not make regular appearances on the big financial networks, but his fund's performance speaks for itself.

Still Gulping

Energy prices have softened over the past year, but consumption of energy commodities continues apace. And the recession won’t last forever; the energy bull will be stomping again.

In the Laurels

The Rukeyser 100, our monthly list of top-performing mutual funds in various categories, is intended to be a simple yet powerful tool for readers seeking the best funds available. We’re pleased that so many of you find it useful, but we also receive questions from our readers about the list--usually why their favorite funds aren’t on it. Here’s a brief primer on what it all means.

Green Shoots

The revised first quarter GDP report continues to shore up the notion that the economy may be turning a corner, with the preliminary GDP estimates showing a decline of 5.7 percent versus an previous estimate of a 6.1 percent decline.

Green Shoots

The revised first quarter GDP report continues to shore up the notion that the economy may be turning a corner, with the preliminary GDP estimates showing a decline of 5.7 percent versus an previous estimate of a 6.1 percent decline.

 

Other People's Money

Leverage almost brought down Wall Street. But even while markets tanked last year, leveraged funds enjoyed huge inflows as investors bet the decline would continue. From a long-term investor’s perspective, most of these funds miss their targets.

Ups and Downs

Even as Chrysler looks set to emerge from bankruptcy ahead of the government’s 30 day goal, General Motors (NYSE: GM) looks set to enter it prior to the administration’s June 1st deadline. According to the Washington Post, it appears likely that the government may force the automaker into bankruptcy protection by the end of next week.

Stress Testing

Don't stress about stress tests. There's money to be made in the financial sector.

Across the Street

Two top investing experts tell us what to buy now.

Unconventional Value

We talk to Kevin O'Brien, co-manager of Prospector Opportunity (POPFX), and learn what two hard-hit sectors offer attractive values.

Across the Street

Two top investing experts tell us what to buy now.

Small Shop Value

This small shop has ample talent.

Since You Asked

Your questions answered.

Phoning in Results

Companies cutting back expends spells opportunity for this customer service firm.

Bank Shots

We're looking for a few good banks.

Bankable Profits

Editor's Note: Benjamin Shepherd has been called away to deal with a family emergency. In lieu of his weekly market insights and commentary, we've included a free preview of Bankable Profits, a paid report he recently penned with Peter Staas. Friday Market Wrapup will return to its regular format next week. We apologize for any inconvenience.

Not So Risky Business

"I've been told by some very large investors that have put their own money into the fund as well as their clients' assets that the appeal resides in our management style--we construct and adjust the portfolio in a way that limits potential blowups."

Optimism Abounds

The Federal Reserve has released the summary results of its Supervisory Capital Assessment Program, affectionately known as “The Stress Test” and at first blush the results don’t appear nearly as dire as many had feared. Only 10 of the 19 outfits put through the rigors of the test came up light, with the government estimating that losses at the banks could total as much as $600 billion under its worst case scenario, requiring them to raise a collective $75 billion to cover shortfalls. And while $75 billion is a huge number in and of itself, it’s chump change when you compare it to what’s already been spent.

Optimism Abounds

The Federal Reserve has released the summary results of its Supervisory Capital Assessment Program, affectionately known as “The Stress Test” and at first blush the results don’t appear nearly as dire as many had feared. Only 10 of the 19 outfits put through the rigors of the test came up light, with the government estimating that losses at the banks could total as much as $600 billion under its worst case scenario, requiring them to raise a collective $75 billion to cover shortfalls. And while $75 billion is a huge number in and of itself, it’s chump change when you compare it to what’s already been spent.

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