Stock Picking Grades for All Cap Blend Style Fund Managers

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This report shows how well All Cap Blend ETFs and mutual fund managers pick stocks.

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Health Care Sector

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The Health Care sector ranks sixth out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report.

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How To Avoid the Worst Style ETFs

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Picking from the multitude of style ETFs is a daunting task.

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How are These 19th Century Companies Doing Today?

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Trading stocks sometimes feels like a very modern phenomenon, so it’s easy to forget that some of the companies we’re investing in go back a century or more.

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Rating Breakdown: Best & Worst ETFs & Mutual Funds by Style

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This report identifies the best ETFs and mutual funds based on the quality of their holdings and their costs.

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Health Care Sector

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The Health Care sector ranks seventh out of the ten sectors as detailed in my Sector Rankings for ETFs and Mutual Funds report.

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Cheap Funds Dupe Investors – 4Q2013

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Fund holdings affect fund performance more than fees or past performance. A cheap fund is not necessarily a good fund. A fund that has done well in the past is not likely to do well in the future (e.g. 5-star kiss of death and active management has long history of underperformance). Yet, traditional fund research…

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Best & Worst ETFs and Mutual Funds: All Cap Value Style

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he All Cap Value style ranks sixth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of two ETFs and 249 mutual funds in the All Cap Value style as of July 17, 2013.

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Top Stock Picks: 2011 In Reivew

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Everyone wants diligence. Few will ever turn it down. The problem is that diligence is expensive. New Constructs makes diligence cost-effective.

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Get Off the SBUX Bandwagon Before It Crashes

Be wary of advice from the bandwagon riders. They care more about getting more people in the bandwagon than anything else.
The Starbucks (SBUX) bandwagon is a big one. I am not on it.

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footnoted.org vs New Constructs = Hype vs Substance

When I ran across the recent article “270,033 pages later, a chance to catch our breath…”, I could not help but admire footnoted.org’s marketing moxy.
The article provides a count of the number of pages of 10-K filings that have poured in during the real earnings season. It also highlight a couple of the largest filings. At first glance, it is easy for one to assume that all of the 270,033 pages were also analyzed.

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The Real Earnings Season Begins Now

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Nearly all of the invest­ing world ignores 10-K sea­son. 10-Ks contain the most important financial information that companies provide all year.

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ETFs vs Mutual Funds: The Winner Is…

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The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge. They do not, in terms of stock selection and expected returns, add value versus passively managed benchmarks.

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Mainly Just Good in Health Care Sector ETFs

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Our top picks for the Health Care sector ETFs are: Biotech HOLDRS (BBH) and Pharmaceutical HOLDRS (PPH). We also rate the investment merit of the top-9 health care sector ETFs.

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Buy Eli Lilly & Company (LLY) – Attractive and Safe Enough To Take Home To Mom

The risk/reward of this stock is quite compelling. Downside risk is low as the valuation already implies a permanent 54% decline in profits. How much worse can the valuation get? Upside reward potential is strong as the stock has to go over $77/share to trade at a value that implies the company’s profits will experience a 0% decline, still a no-growth scenario.

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