Anxious About Holiday Spending? Stretch Out Your Shopping Season

Alamy Pumpkins, ghosts and witches are still everywhere, but retailers are already lining their shelves and websites with holiday shopping promotions. That's good news for shoppers, many of whom are willing to spend more on the holidays this year -- if they can find the right deals. Jaquan Bland, a hospitality and customer service expert living in the Washington, D.C., metro area, and owner of All4Service, says in his house, the level of holiday spending depends entirely on the bargains he and his wife are able to find. "If you order in advance, you may still be able to get things that you won't be able to in the stores or locally," he says. Bland says he'll rely on promotions like free shipping, loyalty credit cards and rewards programs, and "omni-shopping" -- that is, comparing what's available at their favorite stores, both online and off. "But more than likely, we'll spend more than we did last year, because our little girls want bigger and better every year!" he adds. Bland's not alone. According to Deloitte's 28th annual survey of holiday spending intentions and trends, released last week, holiday shoppers will spend 9 percent more on gifts this year than last, an average of $421 up from $386 last year. Not surprisingly, 47 percent of shoppers expect to shop online this year. What is a bit of a shocker: Those who shop both online and in stores will spend 76 percent more than shoppers who only patronize brick-and-mortar retailers. And while 1 in 9 shoppers plan to get a majority of their shopping done on Black Friday, an ever rising number favor Cyber Monday and the pursuit of online retail bargains. In its annual survey of Cyber Monday trends, the website FatWallet found that more than half of those shopping the Cyber Monday sales said they will spend more this year than last. To get a jump on the sales, many will start shopping the Sunday evening before. There are a number of reasons why customers are loosening the purse strings this year. Devin Dotson, who works at a Washington, D.C., nonprofit, says he and his partner have dual incomes this year, which could lead to more spending. Kenneth Goglia, in central New Jersey, says he'll most likely be spending "much more" this year than last given the current economic climate. "Markets are up," Goglia says. "Taxes are down and most likely will stay down." But it's not all rosy. The online couponing site RetailMeNot released a survey that ranked Americans as some of the most anxious people in the world when it comes to holiday spending. Despite this, the survey also found nearly half of the consumers polled will spend the same or more as last year. Rather than cutting their gift budgets, some shoppers appear to be spreading their purchases out over a few months, with some even beginning their holiday shopping in September. Spreading out your purchases can also cut your total gift bill by allowing you take a measured approach to your purchases -- and graze calmly through the next two months, taking advantage of flash sales, rewards programs, emailed specials, and social media offers as they come. And as always, you can maximize your savings by making the most of rewards programs offered by credit cards, apps, and retail loyalty programs.

Billionaire Backers on a Shifting Sea of 52-Week Lows

In two months, the number of U.S. stocks on a 52-week low has dropped from over a thousand companies to today's 573 stocks. But the virtual sea of 52-week lows is by no means overfished. Check out the GuruFocus 52-week low screener to find not only U.S. stocks with possible deep value but also thousands of others around the world.

Utilities, banking and real estate investment trusts are three industry sectors that have changed dramatically in just 60 days. Here are some sector highlights on a 52-week low, with billionaire backers and in some cases, active insiders and yield.

Utilities – Regulated

Two months ago, this sector had 59 stocks out of 154 on a 52-week low. Today the regulated utilities sector has 24 stocks out of 155 on a 52-week low, and the low ratio is 0.15.

Highlight: Exelon Corp. (EXC)

The EXC share price is currently $28.01 or 25.9% off the 52-week high of $37.80. Its yield is 5.97%.

Down 22% over 12 months, Exelon Corp. has a market cap of $23.99 billion and is traded at a P/E of 20.70.

Incorporated in 1999, Chicago-based Exelon Corporation is a public utility holding company and one of the largest competitive power generators in the US. The company operates through its principal subsidiaries, ComEd, PECO and Generation, to deliver electricity and natural gas to approximately 6.6 million customers in Maryland, Illinois , and Pennsylvania. Exelon has operations and business activities in 47 states, the District of Columbia and Canada.

Guru Action: Twelve gurus hold EXC shares, as of June 30, 2013, and there is recent insider selling.

Hotchkis & Wiley is the top guru stakeholder, holding 14,208,753 shares or 1.66% of shares outstanding. The firm increased its position by 23.43% in the second quarter of 2013, buying 2,696,907 shares at an average price of $34.01, for a loss of 17.6%.

The five-year trading history shows all losing quarters. The firm averaged a loss of 39% on 15,056,534 shares bought at an average price o! f $46.25 per share. The firm also lost 38% selling 4,709,801 shares at an average price of $44.96 per share.

Tracking share price, revenue and net income:

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Banks

Two months ago, this sector had 94 stocks out of 657 on a 52-week low. Today the banking sector has 49 stocks out of 624 on a 52-week low, and the low ratio is 0.08.

Highlight: Berkshire Bancorp (BERK)

The BERK share price is currently $7.83 or 13% off the 52-week high of $9.00. Its yield is 1.00%.

Down 6% over 12 months, Berkshire Bancorp has a market cap of $115.4 million and is traded at a P/E of 12.90.

Berkshire Bancorp Inc. is a bank holding company whose principal activity is the ownership and management of its indirect wholly-owned subsidiary, The Berkshire Bank , a state-chartered commercial bank in New York.

Guru Action: As of June 30, 2013, one guru holds BERK shares and there is recent insider trading.

As of June 30, 2013, Jim Simons reduced his position by 4.67%, selling 500 shares at an average price of $8.22 per share, and taking a loss of 4.7%. Simons has held for two quarters, averaging a loss of 5% on 10,700 shares bought at an average price of $8.28 per share.

Tracking share price, revenue and net income:

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Real Estate Investment Trusts

At the end of August, this sector had 86 stocks out of 176 on a 52-week low. Today the REITs sector has 34 stocks out of 182 on a 52-week low, and the low ratio is 0.19.

Highlight: Gyrodyne Company of America (GYRO)

The GYRO share price is currently $73.85 or 35.7% off the 52-week high of $114.80. The company does not pay a dividend.

Down 31% over 12 months, Gyrodyne Company of America has a market cap of $109.2 million and is traded at a P/B of 1.70.

Organized in 1946, Gyrodyne Company of America Inc. is! a self-m! anaged and self-administered real estate investment trust (REIT). The company's primary business is the investment in and the acquisition, ownership and management of a geographically diverse portfolio of medical office and industrial properties. The company also develops industrial and residential properties.

Guru Action: As of June 30, 2013, two gurus hold GYRO shares. There is no recent insider trading to report.

As of June 30, 2013, Michael Price is the top guru stakeholders, holding 47,210 shares or 3.19% of shares outstanding.

His five-year trading history shows mixed results, making a rare gain of 1.5% holding 47,210 shares at an average price of $72.73 per share. Price averaged a loss of 12% on 45,019 shares bought at an average price of $83.59 per share. He also lost 16% selling 3,200 shares at an average price of $88.08 per share.

Tracking share price, revenue and net income:

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Check out the GuruFocus special feature 52-week low screener to find the stocks hitting new lows but are still held by top investor Gurus and Insiders.

Top 5 Oil Stocks To Invest In 2014

The biggest fear for the American public surrounding hydraulic fracturing is the potential for fracking fluids to contaminate drinking-water sources. Based on a recent U.S. Geological Survey study, though, some of those concerns may not be as warranted as originally thought. Over a one-year period, the study found no change in indicator contaminant levels from a random sampling of wells in the Fayetteville shale play.�

Oil and gas drillers in the U.S. will boast about news like this, but hydraulic fracturing isn't quite out of the woods yet. In this video, Fool.com contributor Tyler Crowe discusses some of the other hurdles fracking will face and suggests some companies that are pioneering ways to deal with it.�

The oil and gas industry can be played in several different ways, but some companies emerge no matter what the investing thesis.�Halliburton, one of the top companies in the business, certainly fits this mold. To�access The Motley Fool's new premium research report on this industry stalwart, simply click here now and learn everything you need to know about how Halliburton is positioning itself both at home and abroad.

Top 5 Oil Stocks To Invest In 2014: Bankers Petroleum Ltd (BNK.TO)

Bankers Petroleum Ltd. (Bankers) is engaged in the exploration for and oil in Albania. The Company generates all of the oil revenue from its operations in Albania, which is located northwest of Greece in South Eastern Europe. In Albania, Bankers operates and has the rights to develop the Patos-Marinza and Kucova oilfields pursuant to License Agreements with the Albanian National Agency for Natural Resources (AKBN) and Petroleum Agreements with Albpetrol Sh.A (Albpetrol), the state-owned oil and gas corporation. The Patos-Marinza oilfield is an onshore oilfield in continental Europe, holding approximately 5.1 billion barrels of original-oil-in-place (OOIP). The Company also has rights to exploration Block F (adjacent to the Patos-Marinza oilfield), an 185,000 acre oil and gas prone exploration field. The Company�� subsidiaries include Bankers Petroleum Albania Ltd. (BPAL), Bankers Petroleum International Limited (BPIL) and Sherwood International Petroleum Ltd (Sherwood).

Top 5 Oil Stocks To Invest In 2014: Gran Tierra Energy Inc (GTE)

Gran Tierra Energy Inc. (Gran Tierra) is an independent international energy company engaged in oil and gas acquisition, exploration, development and production. Gran Tierra owns oil and gas properties in Colombia, Argentina, Peru and Brazil. During the year ended December 31, 2011, the Company focused on development of producing fields and generation of exploration prospects in Colombia, including the acquisition of three blocks in the Petrolifera acquisition and the acquisition of a working interest in the Llanos 22 Block. It delivers its oil to Ecopetrol S.A. (Ecopetrol) through its transportation facilities, which include pipelines, gathering systems and trucking. On March 18, 2011, the Company acquired of all the issued and outstanding common shares and warrants of Petrolifera Petroleum Limited (Petrolifera). Advisors' Opinion:

• [By Eric Lam]

  Bankers Petroleum Ltd. and Legacy Oil & Gas Inc. climbed at least 4.1 percent as the price of crude advanced. Gran Tierra Energy Inc. (GTE) added 4.7 percent after boosting its 2013 production forecasts. Bank of Montreal added 0.6 percent after naming a chief operating officer. Argonaut Gold Inc. dropped 6.5 percent to pace losses among metals miners. SNC-Lavalin Group Inc. sank 4.5 percent after cutting its earnings forecast for the year.

• [By Caiman Valores]

  The volume of Whitecap's proved and probable reserves also compares favorably to many of the company's peers, as shown by the chart below being higher than similarly sized Canadian peers Gran Tierra Energy (GTE) and Petrominerales (PMGLF.PK).

Top Dividend Stocks To Watch Right Now: Valero Energy Corporation(VLO)

Valero Energy Corporation operates as an independent petroleum refining and marketing company. The company operates through three segments: Refining, Ethanol, and Retail. The Refining segment engages in refining, wholesale marketing, product supply and distribution, and transportation operations. It produces conventional gasoline, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products. This segment also offers conventional blendstock for oxygenate blending, reformulated gasoline blendstock for oxygenate blending, gasoline meeting the specifications of the California Air Resources Board (CARB), CARB diesel fuel, low-sulfur and ultra-low-sulfur diesel fuel. The Ethanol segment produces ethanol and distillers grains. The Retail segment sells transportation fuels at retail stores and unattended self-service cardlocks; convenience store merchandise and services in retail stores; and home heating oil to residential customers. Valero Energy Corpora tion markets its refined products through bulk and rack marketing network; and sells refined products through a network of approximately 6,800 retail and wholesale branded outlets under the Valero, Diamond Shamrock, Shamrock, Ultramar, Beacon, and Texaco names in the United States, Canada, the United Kingdom, Aruba, and Ireland. As of December 31, 2011, it owned 16 petroleum refineries with a combined throughput capacity of approximately 3.0 million barrels per day; and operated 10 ethanol plants with a combined nameplate production capacity of approximately 1.1 billion gallons per year. The company was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in August 1997. Valero Energy Corporation was founded in 1955 and is based in San Antonio, Texas.

Advisors' Opinion:

• [By Maxx Chatsko]

  Valero (NYSE: VLO  ) If you aren't keen on investing in pure play biofuels stocks, then you may want to give Valero a look. The nation's third-largest refiner is also the nation's third-largest ethanol producer. While it has increased its investment in renewable energy in recent years, including microalgae technology, ethanol facilities, and wind farms, it has also been one of the loudest critics of ethanol-blending mandates. Valero recently told investors that blending a few million more gallons into its fuel this year will increase blending costs from $250 million in 2012 to as high as $750 million this year. To mitigate that effect, the company has activated mothballed ethanol plants in its network. I acknowledge that higher blends will cost more to create, but I find it difficult to see an increase of 200% from such a marginal increase. Regardless, you have an opportunity to play an increase in domestic oil production and biofuels.

Top 5 Oil Stocks To Invest In 2014: Freedom Energy Holdings Inc (FDMF)

Freedom Energy Holdings, Inc. (FDMF), incorporated in June 2005, is a holding company with a focus on the identification of opportunities within the oil and energy sectors. KC-9000 is the Company�� heavy oil technology, to assist in the recovery of heavy oil. As of December 31, 2011, the Company research had developed and shown a new product SR-139 at breaking down asphalt shingles allowing the extraction and recovery of hydrocarbons.

KC-9000 is a micro-emulsion technology. KC 9000 is a micro-emulsion developed to assist in the recovery and extraction of heavy based hydrocarbons that are saturated with high metals and paraffin content. KC 9000 is used for tank cleaning processes. By injecting KC 9000 directly into the tank port holes, at the tank bottom, with the emulsifies turning into an easily extractable slurry.

Top 5 Oil Stocks To Invest In 2014: Frank s International NV (FI)

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Advisors' Opinion:

• [By Ben Levisohn]

  Frank’s International�(FI) has gotten a boost this morning after UBS started coverage of the oil-equipment company’s stock as a Buy. Analyst Angie Sedita�lists the four reasons why she calls the company a “hidden gem:”

  Bloomberg

  (1) Strong company operations – technical strengths, strong execution, above�average margins.
  (2) Highly attractive geographic exposure – 74% of revenues are driven by the offshore markets (US and international) and 45% from international activity.
  (3) Visible growth profile ��offshore and international markets offers the�highest growth opportunities in the market (ultra-deepwater fleet expected to grow 40% by 2016).
  (4) Financial strength ��almost no debt, solid FCF yield (3%) and dividend (1.5% yield).

  Sedita says the stock could rise to $33, 14% from its last price of $29.06.

  Frank’s has gained 3.4% today, while Weatherford (WFT) has gained 0.9% after a Wells Fargo upgrade.�Tesco�(TESO) has dropped 0.2% to $16.52,�Baker Hughes�(BHI) has fallen 0.6% to $49.98 and�National-Oilwell�(NVO) is off 0.5% at $78.48.

Apple reports fiscal 4Q results Monday

SAN FRANCISCO — Wall Street isn't expecting much when Apple reports its fiscal fourth-quarter results Monday.

The 47 stock analysts who publish research on Apple see the company's quarterly profit falling slightly from a year earlier, based on their average earnings estimate of $7.92 a share.

Sales are seen nudging about 2% higher, to $36.8 billion.

Of more concern to investors than the September quarterly numbers will be what Apple has to say about demand trajectory for its two newest smartphones, iPhone 5c and 5s.

Last month, Apple said it sold more than 9 million iPhones in the first weekend the new devices were available, a record.

Yet Monday's earnings report will provide little more than a preview of demand for Apple's latest smartphone models, which were available only for the last two weeks of the quarter.

And consumer demand for the latest iPads — which became available just last week — won't be known until January, when Apple reports results for the current quarter ending in December.

That report will show how many consumer-electronics fans chose Apple smartphones and tablets over rival devices during the crucial holiday shopping season. As the market for mobile devices has matured, rivals including Samsung and others have offered less-expensive competing products, which triggered Apple's profit decline this fiscal year.

For the quarter ended in June, for example, iPad revenue fell 27% from a year earlier, while unit sales fell 14% – the first year-over-year sales drop since the device was introduced three years ago.

More troubling was that iPad revenue during the period fell almost twice as fast as unit sales, suggesting significant downward pressure on average prices for Apple tablets.

For the nine months ended in June, for example, iPhone unit sales rose 19% while iPhone revenue climbed 16%.

Apple gets just over half its revenue from smartphone sales, and some on Wall Street are wondering whether it can continue to fin! d enough buyers to sustain growth, especially because its latest models are priced higher than rival devices.

Many analysts were disappointed last month when Apple priced its iPhone 5C starting at $549 (excluding any wireless carrier subsidies), a level beyond the reach of most smartphone buyers in developing economies.

Investors who've bought the stock during the past month are betting that the two new models — plus the new iPad Air and iPad Mini tablets — will be enough to reignite Apple's growth.

Yet apart from any specific product forecasts from the company Monday, they won't know until January whether higher sales of the new products will be enough to boost Apple's bottom line.

White House: 'Obamacare' Website Fixed by End of November

Top 5 Medical Stocks To Watch For 2014

HealthCare.gov/AP The White House official brought in to fix the U.S. government website created to enable Americans to buy insurance under President Barack Obama's health care law said Friday that HealthCare.gov will be working smoothly for most users by the end of November. Jeffrey Zients told reporters in a conference call that Quality Software Services, or QSSI, will serve as a general contractor to oversee the repairs. The website hasn't had a technology company overseeing the entire project. Instead, the government decided early on that the Centers for Medicare and Medicaid Services would serve as the system integrator. The company, a unit of health insurer UnitedHealth Group (UNH), already has a technology contract related to the website and testified on Thursday to a congressional panel about problems with the system. QSSI produced the federal data hub and a software tool for creating online consumer accounts, which was at the center of early logjam problems. Online insurance exchanges were launched on Oct. 1 under the 2010 Affordable Care Act, often called "Obamacare," to offer health care insurance plans to millions of uninsured Americans. But many Americans have experienced error messages and long waits in trying to sign on to HealthCare.gov, which has become a political embarrassment for Obama.

America's Richest (and Poorest) 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.

Click here to see the 10 richest cities

Click here to see the 10 poorest cities

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-secondary 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 the 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.

Top 5 Bank Companies To Buy Right Now

In this video, history is made when both Matt Koppenheffer and David Hanson agree on an investment thesis: They agree that Markel is the superior investment for a 20-year time span rather than Bank of America. Markel, they note, is a great company that consistently grows profits and book value. Bank of America, meanwhile, is trading cheap, and it may be a good investment for five years, but for a 20-year time frame, it's not a proven great company. Matt and David say they'd like to see more tangible evidence of improved business performance�at Bank of America before recommending it as a long-term investment.

Bank of America's stock doubled in 2012. Is there more yet to come? With significant challenges still ahead, it's critical to have a solid understanding of this megabank before adding it to your portfolio. In The Motley Fool's premium research report on B of A, Matt joins analyst Anand Chokkavelu, CFA, to lift the veil on the bank's operations, including detailing three reasons to buy and three reasons to sell. Click here now to claim your copy.

Top 5 Bank Companies To Buy Right Now: First Horizon National Corp (FHN)

First Horizon National Corporation (FHN), incorporated in 1968, is a bank holding company. The Company provides financial services through its subsidiary, First Tennessee Bank National Association (the Bank), and its subsidiaries. The Company�� two brands First Tennessee and FTN Financial provide customers with a range of products and services. First Tennessee provides retail and commercial banking services throughout Tennessee. FTN Financial (FTNF) is engaged in fixed income sales, trading, and strategies for institutional clients in the United States and abroad. FHN has four operating business segments: regional banking, capital markets, corporate, and non-strategic. As of December 31, 2011, the Bank had $16.4 billion in total deposits and $16 billion in total net loans. As of December 31, 2011, the Company�� subsidiaries had over 200 business locations in 17 the United States states, Hong Kong, and Tokyo, excluding off-premises automated teller machines (ATMs). As of December 31, 2011, the Bank had 183 branch locations in four states, which include 172 branches in metropolitan areas of Tennessee; two branches in northwestern Georgia; seven branches in northwestern Mississippi, and two branches in North Carolina. As of December 31, 2011, FTN Financial products and services were offered through 18 offices in total, including 16 offices in 14 states plus an office in each of Hong Kong and Tokyo.

The regional banking segment offers financial products and services, including traditional lending and deposit taking, to retail and commercial customers in Tennessee and surrounding markets. Regional banking provides investments, financial planning, trust services and asset management, credit card, cash management, and first lien mortgage originations within the Tennessee footprint. In addition, the regional banking segment includes correspondent banking, which provides credit, depository, and other banking related services to other financial institutions.

The capital markets se! gment consists of fixed income sales, trading, and strategies for institutional clients in the United States and abroad, as well as loan sales, portfolio advisory, and derivative sales. The corporate segment consists of gains on the extinguishment of debt, unallocated corporate expenses, expense on subordinated debt issuances and preferred stock, bank-owned life insurance, unallocated interest income associated with excess equity, net impact of raising incremental capital, revenue and expense associated with deferred compensation plans, funds management, low income housing investment activities, and charges related to restructuring, repositioning, and efficiency. The non-strategic segment consists of the wind-down national consumer lending activities, legacy mortgage banking elements, including servicing fees, and the associated ancillary revenues and expenses related to these businesses. Non-strategic also includes the wind-down trust preferred loan portfolio and exited businesses along with the associated restructuring, repositioning, and efficiency charges.

As of December 31, 2011, the Company provided services through its subsidiaries, which include general banking services for consumers, businesses, financial institutions, and governments; through FTN Financial fixed income sales and trading, underwriting of bank, loan sales, advisory services and derivative sales; discount brokerage and full-service brokerage; correspondent banking; transaction processing, such as nationwide check clearing services and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; investment and financial advisory services; mutual fund sales as agent; retail insurance sales as agent, and mortgage banking services.

As of December 31, 2011, the commercial, financial, and industrial (C&I) portfolio was eight billion dollars, and is consisted of loans used for general business purposes, and consisted of relationship customers in Tennessee and certain n! eighborin! g states, which are managed within the regional bank. Products include working capital lines of credit, term loan financing of owner-occupied real estate and fixed assets, and trade credit enhancement through letters of credit. As of December 31, 2011, the unpaid principal balance (UPB) of trust preferred loans totaled $447.2 million with the UPB of other bank-related loans totaling approximately $161.8 million. The commercial real estate portfolio includes both financings for commercial construction and non-construction loans. This portfolio is segregated between income commercial real estate (CRE) loans which contain loans, lines, and letters of credit to commercial real estate developers for the construction and mini- permanent financing of income-producing real estate, and residential CRE loans. The residential CRE portfolio includes loans to residential builders and developers for the purpose of constructing single-family detached homes, condominiums, and town homes. As of December 31, 2011, the residential CRE portfolio was $.1 billion. As of December 31, 2011, the consumer real estate portfolio was $5.3 billion, and is composed of home equity lines and installment loans. As of December 31, 2011, the credit card and other portfolios were $.3 billion, and primarily include credit card receivables, automobile loans, and over-the-counter (OTC) construction loans and other consumer related credits.

FHN�� investment portfolio consists of debt securities, including government agency issued mortgage-backed securities (MBS) and government agency issued collateralized mortgage obligations (CMO). During the year ended December 31, 2011, Government agency issued MBS and CMO, and other agencies averaged $2.9 billion. During 2011, the United States treasury securities and municipal bonds averaged $79.5 million. During 2011, investments in equity securities averaged $222.3 million.

During 2011, short-term funds (certificates of deposit greater than $100,000, federal funds purchased (! FFP), sec! urities sold under agreements to repurchase, trading liabilities, and other short-term borrowings) averaged $3.6 billion. During 2011, other borrowings increased to $.3 billion. Term borrowings include senior and subordinated borrowings and advances with original maturities greater than one year. During 2011, average term borrowings averaged $2.6 billion.

The Company competes with Regions Bank, SunTrust Bank, Wells Fargo Bank N.A., Bank of America N.A., and Pinnacle National Bank.

Advisors' Opinion:

• [By John Maxfield]

  Given that you clicked on this article, it seems safe to assume you either own stock in First Horizon National (NYSE: FHN  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers that investors need to know about First Horizon stock before deciding whether to buy, sell, or hold it.

• [By Monica Gerson]

  First Horizon National (NYSE: FHN) is estimated to report its Q3 earnings at $0.18 per share on revenue of $307.14 million.

  Laboratory Corp. of America Holdings (NYSE: LH) is expected to report its Q3 earnings at $1.80 per share on revenue of $1.45 billion.

Top 5 Bank Companies To Buy Right Now: Banco Bilbao Vizcaya Argentaria S.A. (BBVA)

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified international financial group, with strengths in the traditional banking businesses of retail banking, asset management, private banking and wholesale banking. The Company also has investments in some of Spain�� companies. During the year ended December 31, 2009, BBVA focused its operations on six major business areas: Spain and Portugal, Wholesale Banking and Asset Management, Mexico, The United States, South America and Corporate Activities. On August 21, 2009, through its subsidiary BBVA Compass, BBVA acquired certain assets of Guaranty from the United States Federal Deposit Insurance Corporation (the FDIC).

Spain and Portugal

The Spain and Portugal business area focuses on providing banking services and consumer finance to private individuals, enterprises and institutions in Spain and Portugal. The main business units included in the Spain and Portugal area Spanish Retail Network, which manages individual customers, high net-worth individuals (private banking) and small companies and retailers in the Spanish market; Corporate and Business Banking, which manages business with small and medium enterprises (SMEs), large companies, institutions and developers in the Spanish market, and Other units, which includes consumer finance, that manages renting and leasing business, credit to individual and to enterprises for consumer products and Internet banking; European Insurance that manages the insurance business in Spain and Portugal, and BBVA Portugal, that manages the banking business in Portugal. The Spanish Retail Network unit services the financial and non-financial needs of households, professional practices, retailers and small businesses. The Corporate and Business Banking unit offers a range of services and products to SMEs, large companies, institutions and developers with specialized branch networks for each segment.

The Company�� European Insurance unit�� activities are conducted through! various insurance companies that provide direct insurance, reinsurance and insurance brokering services in Spain and Portugal and market products for different types of customers (private individuals, SMEs, retailers, professional service firms and providers and self-employed individuals) through this unit�� branch offices. BBVA Portugal manages its banking business in Portugal.

Wholesale Banking and Asset Management

The Wholesale Banking and Asset Management area focuses on providing services to large international companies and investment banking, capital markets and treasury management services to clients. The business units included in the Wholesale Banking and Asset Management area are Corporate and Investment Banking, which coordinates origination, distribution and management of a complete catalogue of corporate and investment banking products (corporate finance, structured finance, syndicated loans and debt capital markets) and provides global trade finance and global transaction services with coverage of large corporate customers specialized by sector (industry bankers); Global Markets, which handles the origination, structuring, distribution and risk management of market products, which are placed through its trading rooms in Europe, Asia and the Americas; Asset Management, which designs and manages the products that are marketed through its different branch networks including traditional asset management, alternative asset management and Valanza (its private equity unit); Industrial and Other Holdings, which helps to diversify the area�� businesses with the aim of creating medium and long-term value through active management of a portfolio of industrial holdings and other Spanish and international projects, and Asia.

During the year ended December 31, 2009, it launched two products: BBVA Bonos Cash (BBVA Cash Bonds), a money market fund for retail customers, and BBVA Bonos Largo Plazo Gobiernos II (BBVA Long-Term Government Bonds), a public-debt fu! nd. In ad! dition it launched through this unit additional fixed-income long-term funds, including BBVA Bonos Corporativos 2011 and BBVA Bonos 2014, which were sold to HNWI customers.

Mexico

The business units included in the Mexico area are Retail and Corporate banking and Pensions and Insurance. BBVA Bancomer launched six new mortgage products for lending to home buyers in 2009. These products included: loans for home improvements, remodeling or additions to homes and financial discount which provides liquidity to construction companies. In Mexico, it operates its pensions business through Afore Bancomer, its insurance business through Seguros Bancomer, its annuities business through Pensiones Bancomer and its health insurance business through Preventis.

The United States

The business units included in the United States area are BBVA Compass and Other units: BBVA Puerto Rico and Bancomer Transfers Services (BTS). During 2009 this unit marketed and sold several new products, The ClearPoints credit card, Business Build-to-order Checking, Compass for your Cause and Money Market Sweep.

South America

The South America business area includes its banking, insurance and pension businesses in South America. The business units included in the South America business area are Retail and Corporate Banking, which includes banks in Argentina, Chile, Colombia, Panama, Paraguay, Peru, Uruguay and Venezuela; Pension businesses, which includes pensions businesses in Argentina, Bolivia, Chile, Colombia, Ecuador and Peru and Dominican Republic, and Insurance businesses, which includes insurance businesses in Argentina, Chile, Colombia, Dominican Republic and Venezuela.

Corporate Activities

The Corporate Activities area handles its general management functions. These mainly consist of structural positions for interest rates associated with the euro balance sheet and exchange rates, together with liquidity management and shareholde! rs��fun! ds.

Advisors' Opinion:

• [By Alexis Xydias]

  Borrowed stock in BBVA (BBVA), Spain�� second-biggest bank, has fallen to 0.23 percent of the Bilbao-based company�� outstanding shares, from 2.41 percent two years ago, Markit data show. The stock surged 41 percent in the period.

• [By Lee Jackson]

  Banco Bilbao Vizcaya Argentaria S.A. (NYSE: BBVA) was raised to Outperform from Neutral by Credit Suisse.

  Caterpillar Inc. (NYSE: CAT) was started as Equal Weight at Morgan Stanley

Hot Dividend Stocks To Invest In 2014: Western Alliance Bancorporation (WAL)

Western Alliance Bancorporation (WAL) is a bank holding company. The Company provides full-service banking and lending to locally owned businesses, professional firms, real estate developers and investors, local non-profit organizations, high net worth individuals and other consumers through its three wholly owned subsidiary banks (the Banks): Bank of Nevada (BON), operating in Southern Nevada; Western Alliance Bank (WAB), operating in Arizona and Northern Nevada, and Torrey Pines Bank (TPB), operating in California. In addition, the Company�� non-bank subsidiaries, Shine Investment Advisory Services, Inc. (Shine) and Western Alliance Equipment Finance (WAEF), offer an array of financial products and services to small to mid-sized businesses and their proprietors, including financial planning, custody and investments, and equipment leasing nationwide. It operates in four segments: Bank of Nevada, Western Alliance Bank, Torrey Pines Bank and Other.

The Company provides a range of banking services, as well as investment advisory services, through its consolidated subsidiaries. As of December 31, 2011, WAL owned an 80% interest in Shine. As of December 31, 2011, the Company owned a 24.9% interest in Miller/Russell & Associates, Inc. (MRA), an investment advisor. MRA provides investment advisory services to individuals, foundations, retirement plans and corporations.

Lending Activities

Through the Company�� banking segments, the Company provides a variety of financial services to customers, including commercial real estate loans, construction and land development loans, commercial loans, and consumer loans. Loans to businesses consisted 89.2% of the total loan portfolio at December 31, 2011. Loans to finance the purchase or refinancing of commercial real estate (CRE) and loans to finance inventory and working capital that are additionally secured by CRE make up the majority of its loan portfolio. These CRE loans are secured by apartment buildings, professional of! fices, industrial facilities, retail centers and other commercial properties. As of December 31, 2011, 49% of its CRE loans were owner-occupied. Owner-occupied commercial real estate loans are loans secured by owner-occupied nonfarm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner-occupied commercial real estate loans are commercial real estate loans for which the primary source of repayment is nonaffiliated rental income associated with the collateral property.

Construction and land development loans include multi-family apartment projects, industrial/warehouse properties, office buildings, retail centers and medical facilities. Commercial and industrial loans include working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans. Commercial loans are primarily originated to small and medium-sized businesses in a variety of industries. Consumer loans are generally offered at a higher rate and shorter term than residential mortgages. Its consumer loans include home equity loans and lines of credit, home improvement loans, credit card loans, and personal lines of credit. As of December 31, 2011, its loan portfolio totaled $4.68 billion, or approximately 68.4% of its total assets.

Investment Activities

All of the Company�� investment securities are classified as available-for-sale (AFS) or held-to-maturity (HTM). As of December 31, 2011, the Company had an investment securities portfolio of $1.48 billion, representing approximately 21.7% of its total assets. As of December 31, 2011, its investment securities portfolio consisted of the United States Government sponsored agency securities, Municipal obligations, Adjustable-rate preferred stock, Mutual funds, Corporate bonds, Direct the United States obligation and government-! sponsored! enterprise (GSE) residential mortgage-backed securities, private label residential mortgage-backed securities, Community Reinvestment Act (CRA) investments, Trust preferred securities, Private label commercial mortgage-backed securities, and Collateralized debt obligations.

Sources of Funds

The Company offers a variety of deposit products, including checking accounts, savings accounts, money market accounts and other types of deposit accounts, including fixed-rate, fixed maturity retail certificates of deposit. As of December 31, 2011, the deposit portfolio consisted of 27.5% non-interest bearing deposits and 72.5% interest-bearing deposits. Non-interest bearing deposits consist of non-interest bearing checking account balances. In addition to its deposit base, it has access to other sources of funding, including Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) advances, repurchase agreements and unsecured lines of credit with other financial institutions.

Financial Products and Services

In addition to traditional commercial banking activities, the Company offers other financial services to customers, including Internet banking, wire transfers, electronic bill payment, lock box services, courier, and cash management services. Through Shine, a full-service financial advisory firm, the Company offers financial planning and investment management.

Advisors' Opinion:

• [By Investment Biker]

  Investment Summary: This article is on Western Alliance Bancorporation (WAL), a growth-oriented commercial lender in the Southwest. The banks looks set to improve profitability supported by economic recovery in Last Vegas, industry-leading revenue performance and operating leverage supported by expense control. The credit profile of the bank looks excellent with limited exposure to residential mortgage and well poised to grow its loan portfolio by 20% annually over the next 3 years. It is also well set on a path to credit recovery with improving fundamentals that justifies premium valuation going forward.

Top 5 Bank Companies To Buy Right Now: HDFC Bank Ltd (HDB)

HDFC Bank Limited (HDFC Bank), incorporated in August 1994, is a banking company engaged in providing a range of banking and financial services, including commercial banking and treasury operations. The Bank has overseas branch operations in Bahrain and Hong Kong. The Bank operates in four segments: treasury, which primarily consists of net interest earnings from the Bank�� investment portfolio, money market borrowing and lending, gains or losses on investment operations and on account of trading in foreign exchange and derivative contracts; retail banking, which serves retail customers through a branch network and other delivery channels; wholesale banking, which provides loans, non-fund facilities and transaction services to corporate, public sector units, government bodies, financial institutions and medium scale enterprises, and other banking business, segment includes income from para banking activities, such as credit cards, debit cards, third party product distribution, primary dealership business and the associated costs. Revenues of the retail banking segment are derived from interest earned on retail loans, net of commission (net of subvention received) paid to sales agents and interest earned from other segments for surplus funds placed with those segments, fees from services rendered, foreign exchange earnings on retail products.

Retail Banking

The Bank is a financial services provider of various deposit products, of retail loans (auto loans, personal loans, commercial vehicle loans, mortgages, business banking, loan against gold jewellery), credit cards, debit cards, depository (custody services), investment advisory, bill payments and several transactional services. Apart from its own products, the Bank distributes third party financial products, such as mutual funds and life and general insurance. As of March 31, 2012, the Bank had 2,544 branches in 1,399 Indian cities. The Bank had 8,913 automated teller machines (ATMs) during the fiscal year ended March 31,! 2012. In addition to the Bank does home loans in conjunction with HDFC Limited. Under this arrangement the Bank sells loans provided by HDFC Limited through its branches. HDFC Limited approves and disburses the loans, which are booked in their books, with the Bank receiving a sourcing fee for these loans. HDFC Limited offers the Bank an option to purchase up to 70% of the fully disbursed home loans sourced under this arrangement through either the issue of mortgage backed pass through certificates (PTCs) or by a direct assignment of loans; the balance is retained by HDFC Limited. It also distributes life, general insurance and mutual fund products through its tie-ups with insurance companies and mutual fund houses.

Wholesale Banking

The Bank provides its corporate and institutional clients a range of commercial and transactional banking products. The Bank�� commercial banking business covers the corporate sector, the emerging corporate segments and some small and medium enterprises (SMEs). The Bank has a number of business groups catering to various segments of its wholesale banking customers with a range of banking services covering their working capital, term finance, trade services, cash management, foreign exchange and electronic banking requirements. The Bank�� financial institutions and government business group (FIG) offers commercial and transaction banking products to financial institutions, mutual funds, public sector undertakings, central and state government departments. The main focus for this segment is offering various deposit and transaction banking products to this segment besides offering funded, non-funded treasury and foreign exchange products.

The Bank provides its customers both working capital and term financing. The Bank�� corporate banking business includes cash management and vendor and distributor (supply chain) finance products. The Bank has a wholesale banking branch in Bahrain, a branch in Hong Kong and two representative offic! es in the! United Arab Emirates (UAE) and Kenya. The branches offer the Bank�� suite of banking services including treasury and trade finance products to its corporate clients. The Bank offers wealth management products, remittance facilities and markets deposits to the non-resident Indian community from its representative offices.

Treasury

The treasury group is responsible for compliance with reserve requirements and management of liquidity and interest rate risk on the Bank�� balance sheet. On the foreign exchange and derivatives front, revenues are driven primarily by spreads on customer transactions based on trade flows and customers��demonstrated hedging needs. The Bank offers Indian rupee and foreign exchange derivative products to its customers. The Bank enters into foreign exchange and derivative deals with counterparties after it has set up appropriate counterparty credit limits based on its evaluation of the ability of the counterparty to meet its obligations in the event of crystallization of the exposure. The Bank also deals in Indian rupee derivatives on its own account, including for the purpose of its own balance sheet risk management.

Other banking business

The Bank has two subsidiaries: HDFC Securities Limited (HSL) and HDB Financial Services Limited (HDBFS). HSL is primarily in the business of providing brokerage services through the Internet and other channels. As of March 31, 2012, HSL had a network of 184 branches across the country. HDBFS is a non-deposit taking non-bank finance company (NBFC). Apart from lending to individuals, it grants loans to small and medium business enterprises and micro small and medium enterprises, the principle businesses of HDBFS include loans, which offers a range of loans in the secured and unsecured loans space that fulfill the financial needs of its target segment; insurance services, HDBFS is a corporate agent for HDFC Standard Life Insurance Company and sells insurance products ,as well as products, ! such as L! oan Cover and Asset Cover, and collections-BPO services, which runs six call centres. These centres cover collection requirements at over 200 towns through its calling and field teams. As on March 31, 2012, HDBFS had 180 branches in 135 cities in order to distribute its products and services.

Top 5 Bank Companies To Buy Right Now: Canadian Imperial Bank of Commerce(CM)

Canadian Imperial Bank of Commerce provides various financial products, services, and advice to individual, small business, commercial, corporate, and institutional clients in Canada and internationally. The company offers retail markets services comprising personal banking, business banking, and wealth management services, as well as investment management services to retail and institutional clients. It also provides wholesale banking services, including credit, capital markets, investment banking, merchant banking, and research products and services to government, institutional, corporate, and retail clients. The company provides its services through its branch network, automated bank machines, mobile banking, and online banking site. As of June 3, 2011, it operated approximately 1,100 branches and 4,000 automated bank machines in Canada. The company was founded in 1867 and is headquartered in Toronto, Canada.

Advisors' Opinion:

• [By Dan Caplinger]

  It's easy for U.S. investors to paint Canadian banks with a single brush-stroke, as the differences in the banking system helped keep Bank of Montreal and its peers safer during the financial crisis five years ago. As Canada's housing market has kept rising even after the housing bust south of its border, however, investors have gotten increasingly concerned about the potential health of its banks, especially the largest ones. With downgrades for Canadian Imperial Bank of Commerce (NYSE: CM  ) , Toronto-Dominion (NYSE: TD  ) , and Bank of Montreal among a total of six banks in January, Moody's identified higher debt levels among Canadian consumers as driving potential risk for the economy.

• [By John Reese, Founder and CEO, Validea.com And Validea Capital Management]

  As you might imagine, the portfolio will tread into areas of the market others ignore, because of its contrarian bent. Right now, its holdings include some very unloved firms, including several financials, emerging market stocks, and much-maligned BP. Here's a look at five of the stock in our Dreman portfolio:

  Canadian Imperial Bank of Commerce (CM)
  
  BP Plc (BP)
  
  Telecom Argentina SA (TEO)
  
  China Mobile Limited (CHL)
  
  Vale SA (VALE)
  
  

  Subscribe to Validea here��/P>

• [By Tony Daltorio]

  One of his companies, Cheung Kong Holdings Limited (CHEUY), recently formed a 50/50 joint venture with Canadian Imperial Bank of Commerce (NYSE: CM) called CEF Holdings. They want to invest into beaten-down mining stocks and particularly gold equities.

• [By Sean Williams]

  Looking north for opportunities
  As I head north to Canada in a few days for a vacation of my own, I can't help but think that the Canadian Imperial Bank of Commerce (NYSE: CM  ) , known better as CIBC, is getting a bad rap from shareholders in recent months, despite being one of Canada's most stable money center banks.

Asian Stocks Erase Advance as Chinese Shares Tumble

Asian stocks erased gains and the regional benchmark index retreated from a five-month high after Chinese shares tumbled as the nation's money-market rates surged.

China Resources Land Ltd., the second-largest mainland developer traded in Hong Kong, slipped 2.2 percent. Japan Exchange Group Inc. sank 3.4 percent after the main bourse operator of the world's second-largest equity market didn't boost its full-year profit forecast as analysts had expected. Hyundai Merchant Marine Co. jumped 10 percent after South Korea's biggest shipping line by market value refinanced 280 billion won of debt ($265 million).

The MSCI Asia Pacific Index dropped 0.3 percent to 143.46 as of 2:03 p.m. in Tokyo, erasing gains of as much as 0.5 percent. The gauge had risen for four days and today briefly touched the highest level since June 2008 amid speculation the Federal Reserve will delay tapering economic stimulus. The Shanghai Composite Index (SHCOMP) headed for a three-week low as China's money market rates jumped the most since July.

"The market has had a good run since the U.S. government ended a shutdown last week," Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., said in a telephone interview. "It's not a surprise that we're seeing a bit of a correction. Chinese interest rates are an issue. There's a fear that the mini credit crunch we saw in June could return again. It's probably part of the broader efforts to slow down credit growth in China."

Bank Funding

China's Shanghai Composite Index slipped 1.2 percent, heading for the lowest close since Sept. 30. The seven-day repurchase rate, a gauge of funding availability in the Chinese banking system, surged 42 basis points to 4 percent as of 10:04 a.m. in Shanghai, according to a weighted average compiled by the National Interbank Funding Center. That was the biggest advance since July 29.

The People's Bank of China has suspended selling reverse-repurchase contracts since Oct. 17, leading to a net withdrawal of 44.5 billion yuan ($7.3 billion) from the financial system last week. The authority asked commercial banks to submit orders today for 28-day repurchase contracts, 91-day bills, and 14-day reverse repos planned for tomorrow, according to a trader at a primary dealer required to bid at the auctions.

Hong Kong's Hang Seng Index lost 0.1 percent. Japan's Topix Index (TPX) slid 1 percent, while Taiwan's Taiex index fell 0.4 percent. South Korea's Kospi index dropped 0.7 percent.

Australian Inflation

Australia's S&P/ASX 200 Index declined 0.3 percent, erasing gains of 0.5 percent. The nation's inflation accelerated in the third quarter from the previous three months, a report showed today. New Zealand's NZX 50 Index gained 0.9 percent, extending its advance to a record high.

The MSCI Asia Pacific Index climbed 3.8 percent this month through yesterday after U.S. lawmakers ended the government shutdown and raised the debt ceiling. The gauge yesterday traded at 13.8 times estimated earnings, compared with 15.9 for the Standard & Poor's 500 Index and 14.8 for the Stoxx Europe 600 Index.

The S&P 500 climbed 0.6 percent yesterday, a fourth day of record closing highs, on speculation slower growth in hiring will extend Federal Reserve stimulus. That pushed the U.S. equities benchmark to within a percentage point of the best yearly gain in a decade. Futures on the S&P 500 expiring in December fell 0.3 percent today.

Barclays Plc changed its estimate for the start of Fed tapering to March from December after data showed U.S. employers added 148,000 workers in September, missing the 180,000 increase projected in a Bloomberg survey of economists. The data's release was delayed due to the 16-day U.S. government shutdown.

Top Casino Stocks To Own For 2014

Fed policy makers unexpectedly refrained in September from reducing their $85 billion in monthly bond purchases, saying they wanted more evidence of an economic recovery. Deutsche Bank AG expects quantitative easing to continue into the first quarter of next year, while Goldman Sachs Group Inc. economists said that while tapering in December "remains a possibility," March is the most likely date.

ON THE MARKET - The trend ‘remains’ your friend - But…

Pre-market – Monday 10-21-2013

"The most important single central fact about a free market is that no exchange takes place unless both parties benefit."

~ Milton Friedman ~

Dr. John L. Faessel

ON THE MARKET

Commentary and Insights

Quote of the day

"The government was set to protect man from criminals – and the Constitution was written to protect man from the government."

~ Ayn Rand ~

~

"Increasing America's debt weakens us domestically and internationally," "Leadership means that the buck stops here. Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. America deserves better."

~ Obama ~

2006

** *

The trend 'remains' your friend - But…

Price in the S&P 500 (SPX) is right on the top trendline (resistance) of the channel that goes back to 2009.

The McClellan Oscillator is overbought at plus 192

Sentiment beginning to simmer*

MARKET

Stock market indexes remain in strong uptrends and remain constructive. Price in

most indexes is pegged right at the resistance of is right on the top trendline of the channel that goes back to 2009. Also we're overbought and sentiment is near the boil point. The Dow Jones Industrial Average and the Bank Index (BKX) are lagging and in both cases the 50 – day moving averages have turned perceptibly down. Best case I'd expect some back and fill as the Fed has back burnered the "taper" rhetoric.

Earnings growth on the wane

Earnings growth in the S&P 500 is expected to be 2.1% for Q3, down from an estimate of 4.5% at the beginning of October and 8.5% in July. Expectations for earnings growth in the upcoming Q4 are now at a sky high 10.3%, though they are expected to decrease.

The forward S&P 500 (SPX) price-to-earnings ratio is 14.6, near its highest in 4 years and slightly under the long-term mean of 14.9. The P/E multiple has risen throughout the year as earnings growth has remained stagnant, and forecasts are likely to fall in coming months. Without improved growth, that P/E will start to look expensive. The market is priced to perfection and the market could be topping.

Weekly S&P 500

The S&P 500 (SPX) closed Friday at 1744.50 - the prior Friday it was 1703.20

The 50-day moving average support is 1680.51

Short term 'Price' support is at 1742. Then at 1735

The a bit further out 1646 and 1627

The 200-day moving average support is at 1609.34

Channel and trend line support of (November 2012) is at 1675

Then deep channel and trend line support of (October 2011) is at 1580.

Then the deepest channel and trend line support of (March 2009) is at 1389

Important item to remember re the new Homeland Security nomination

"We cannot continue to rely only on our military in order to achieve the national security objectives that we've set. We've gotta (sic) have a civilian national security force that's just as powerful, just as strong, just as well funded [as the United States military]"

~ Barack Obama ~ 2008 - Link here at the 16:44 minute mark

Study: Wind Power Costs Taxpayers Billions of Dollars

According to Texas Tech University Professor Dr. Michael Giberson for the Institute for Energy Research, "wind energy costs taxpayers $12 billion per year and shows wind power costs $109 per megawatt hour, nearly double government estimates of just $72 per megawatt hour. The study also shows wind power doesn't decrease the cost of electricity as environmental groups and government advocates claim, but instead shifts costs onto taxpayers. In addition, wind energy subsidies allow those who start wind projects to easily game the system."Link for the 26 page new study.

* This Week's Investor Sentiment

In general the Bullishness / Bearishness complex overview is now in low euphoria range

(High BULLISH readings in the Investor Sentiment Readings usually are signs of Market tops; low ones, market bottoms.)

The American Association of Individual Investors [AAII]Investor Sentiment Survey of BULLISHNESS rose to 46.3 from 41% the prior week.

The "Bullish" survey posted recent highs of 52.3% 8-months ago. It posted cycle lows of 22.2% on 7/23/2012 the lowest percentile since August 2010. Long-Term Average: Bullish: 39.0%

The American Association of Individual Investors [AAII] Investor Survey of BEARISHNESS sagged to 24.9 from 33.6% the prior week. 14-weeks ago it posted its lowest read since 1/12/2012 when it slipped to 18.3%. Cycle highs of Bearishness of 54.5% were posted 13 weeks ago. Long-Term Average: Bearish: 30.5%

Consensus Index BULLISH was up a tick to 48% from last week's 47%. New Cycle highs in Bullishness of 77% were posted 4-months ago matching the top tick of 77% on 10/11/2007.

The Market Vane (Market Letter Survey) rose a few % points to 60% from 57%the prior week. In October 2007 it topped at 70% bullish.

The Citigroup "Panic / Euphoria" Model remains in neutral at 22% from 0.25 the prior week. Cycle Highs (and Euphoria zone) of plus 0.49 occurred in February and that posting was the highest since May 2008. At the end of June, 2011 it ticked cycle lows of minus0.31 in the Panic mode.

The BARRON's Confidence Index is 73.2 from 73.6 the prior week, one-year ago it was 68.9.

The Confidence Index is the premier measure of how the bond markets trillions (total global is around $93 trillion and USA is about 39% of that) are allocated: (The bond market is twice the size of the stock market.) The Index is the High-grade bond index divided by intermediate-grade index. A decline in latter vs. former - generally indicates rising confidence, pointing to higher stocks.

Friday's key indicators and metrics:

Cycle highs or lows are in red

·McClellan Oscillator is OVERBOUGHT at plus 192

·US Dollar Index – 79.73 – Interday it ticked cycle and 8-month lows at 79.55

·3-month $ LIBOR hangs at new lows of 0.24885% - the lowest since 11/4/2004

·CBOE Put / Call Volume Ratio – 0.69 - lowest since September 9th of 0.65

·VIX – 13.04 - the cycle high was on June 20th at 21.32

·Aussie Dollar –0.9631- 5.5 month highs

·Natural Gas (Globex) – 3.764

·Copper – 3.2990

·Gold (COMEX) – 1314.6

·Crude oil (NYMEX) 100.81– cycle and 2-year highs at 110.53 were ticked in August

·Brent crude 109.94

·The Treasury 10-year yield – 2.59% - cycle high was on 9/10/2013 at 2.98%

·The 30-year Treasury – 3.65% - cycle high was on August 22nd at 3.93%

·Canadian Dollar – 0.9700

·Silver (COMEX) – 21.913

·Japanese Yen – 1.0221

·Swiss Franc – 1.087

·Euro – 1.3681

·Platinum 1437.8

·Palladium 740.65

·Lumber (CME) – 353.50

.

Tesla's Elon Musk Channels the Late Steve Jobs

Tesla (NASDAQ: TSLA  ) dazzled a crowd last Thursday night during the electric-vehicle maker's battery swap event in California. The company's CEO, Elon Musk, took the stage to host a demonstration of how Model S owners can recharge their all-electric cars in half the time it takes to refill a traditional car with gas.

Seeing is believing
It's game on for gas cars versus EV technology. In just 90 seconds, Tesla can replace your EV's empty battery with a fully charged one. During the presentation Musk explained:

When you come to a Tesla supercharging station you have the choice of the supercharger, which is and always will be free... Or, you have the choice of a battery pack swap, which is faster than you can fill a gas tank. ... The only decision that you have to make when you come to one of our Tesla stations is do you prefer faster or free?

The audience responded with laughter and you couldn't help feeling as though you'd witnessed the rebirth of the late Steve Jobs.

Dressed all in black, Musk's showmanship really drove home the point that electric cars can be just as, if not more, convenient than their gas-guzzling equivalents. With its network of supercharging stations, Tesla is working to address the lack of charging infrastructure that plagues EV adoption in the United States.

From the pump to the plug
The swap solution for Tesla's battery pack, will be an option that's available at all Tesla supercharger stations. For about the cost of a tank of gas, between $60 and $80, Tesla drivers can swap their battery for a fully charged one in less than 90 seconds time. According to Reuters, "Drivers who choose to swap must reclaim their original battery on their return trip or pay the difference in cost for the new pack."

That seems fair. Meanwhile, for Tesla, the hope is that this added convenience would entice even more drivers to become Tesla EV owners. It's worth mentioning that these battery-swap stations could cost Tesla as much as $100 million to build, according to Musk. Still, that's a worthy investment if it helps Tesla turn more skeptics into believers and more drivers into Tesla EV owners.

Electric is the future
Tesla's plan to disrupt the global auto business has yielded spectacular results. From the company's innovative retail strategy to its most recent battery-swap solution. However, giant competitors are already moving to disrupt Tesla. Will the company be able to fend them off?

A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market", names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

Can Seagate Stock Overcome the Death of PCs?

With its status as one of the giants of the hard-disk drive industry, Seagate Technology (NASDAQ: STX  ) finds itself facing the challenge of dealing with falling PC sales. Yet even as other PC-centered companies have seen their share prices plunge, Seagate stock has risen to all-time highs going back to its IPO a decade ago. Let's take a look at how Seagate has moved beyond PC worries and what lies ahead for the storage-technology company.

What's behind Seagate's success?
Seagate isn't the most glamorous of technology companies, but it has played a key role in facilitating the technological advances that have led to many of the products that billions of people around the world take for granted today. Throughout its history, Seagate has provided data storage solutions for its customers, with its hard-disk drives having been the mainstay of PC storage for decades. Over time, the company has pushed hard-drive technology forward by leaps and bounds, and as computing has grown ever more mobile, Seagate has incorporated advances like portable hard drives with built-in Wi-Fi networks to facilitate data exchange for users on the go.

The concern that most investors have, though, is that the steady decline in PC sales threatens Seagate's traditional strength in providing peripherals for PC buyers. Yet at least so far, Seagate has arguably benefited from the weak prospects for PC demand. Consolidation in the industry has left it and rival Western Digital (NASDAQ: WDC  ) as the two main survivors in the hard-drive market. As long as demand for those drives exists, Seagate will hold onto its share of the profits from the industry, supporting its stock price.

Will SSDs kill the HDD stars?
The primary concern among skeptics, though, is whether that hard-drive demand is sustainable. Rather than relying on PCs, Seagate has used the steady decline in PC sales as impetus to explore new strategic directions with its storage technology. The rise in use of solid-state drives in mobile devices -- which offer much faster data access but with added cost -- poses a long-term threat to the company, and the success of solid-state drive makers has made clear just how important they'll be in advancing technological innovation, especially in the mobile realm. The trend initially brought obscure small players Fusion-io and OCZ Technology into the spotlight, but the more-established giants SanDisk (NASDAQ: SNDK  ) and Micron Technology have become much more important as they use their memory expertise to advance their own solid-state lines. SanDisk and Micron have two ways to win from the trend, as they can sell the memory other solid-state drive makers need as well as vertically integrating their own SSD production.

Seagate, though, has chosen a middle path. By marrying its traditional hard-drive technology with newer and faster solid-state drives, Seagate gives customers options and various price points from which they can choose the best and most cost-effective storage solutions. These hybrid solid-state hard drives offer greater capacity than pure solid-state drives at more attractive prices but are also smaller than traditional hard drives. Western Digital has also gotten in on the hybrid drive trend, teaming up with SanDisk to produce hybrids of their own. Seagate has also moved into the pure solid-state drive market with its own solid-state drives.

Moreover, it's important to remember that even traditional hard drives aren't likely to go away anytime soon. The massive amounts of data that companies are collecting through their recent cloud-computing initiatives presents the companies collecting that data with the need to store and analyze it, but often, speed is less important than cost-effectiveness in handling all the information they collect. Technological advances like Western Digital's use of helium to improve hard-drive efficiency should lengthen the viability of the technology. Ever-larger traditional hard drives remain the clear choice for non-mission-critical data, and Seagate therefore stands to make up for hard-drive sales lost due to declining PC demand.

Other applications, including digital video recorders and medical imaging devices, will also likely continue to use hard-disk drives into the future. Even the soon-to-be-released newest-generation gaming consoles from the popular Xbox and PlayStation lines will include standard hard drives.

The big buyer of Seagate stock
Perhaps the best argument favoring Seagate's investment prospects is the fact that the company itself is using spare cash to do stock buybacks. Over the past two years, Seagate has stepped up its buybacks considerably, repurchasing more than $4 billion in shares since mid-2011 -- more than triple the amount Western Digital has spent.

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Seagate will face challenges in holding solid-state specialists at bay while making advances of its own on the technology front. But with support from buybacks, Seagate stock has plenty of room for further gains well into the future.

So with all this in mind, is Seagate worthy of your investment consideration (and dollars)? The Motley Fool answers this question and more in our most in-depth Seagate research available for smart investors like you. Thousands have already claimed their own premium ticker coverage, and you can gain instant access to your own by clicking here now.

Click here to add Seagate Technology to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Top Clean Energy Companies To Buy Right Now

Foolish investors have been longtime fans of first-movers in a new space, and Clean Energy Fuels (NASDAQ: CLNE  ) has certainly been in on the ground floor in the effort to build out a national network of natural gas fueling stations. Now, the challenge for it will be to outpace some of its newer, larger�competitors.

Royal Dutch Shell (NYSE: RDS-A  ) announced recently that it will be partnering with Travel Centers of America (NYSE: TA  ) to build out a network of natural gas fueling stations at Travel Centers of America's highway rest stations across the country. In this video, Fool.com contributor Tyler Crowe takes a look at the leading companies in this natural gas station rush, and sees one company that could benefit from this competition.

Top Clean Energy Companies To Buy Right Now: Mediolanum(MED.MI)

Mediolanum S.p.A., together with its subsidiaries, provides a range of financial services in Italy. It offers personalized current accounts that are interest-bearing and includes checks, ATM card, and credit card services. The company also provides a range of payment cards, including credit cards, debit cards, and rechargeable cards; mortgages and loans; pension schemes; managed savings, including mutual funds and managed accounts, and index and unit linked products; and life insurance products. In addition, it provides financial brokerage, asset management and advice, fund management, real estate brokerage, and education and training services, as well as engages in the production of audio, film, and television programs. The company operates in Spain, Germany, Ireland, and Luxemburg. Mediolanum S.p.A. was founded in 1982 and is headquartered in Basiglio, Italy.

Top Clean Energy Companies To Buy Right Now: Cleantech Transit Inc (CLNO)

Cleantech Transit, Inc., incorporated on June 28, 2006, is a development-stage company. The Company focuses to explore opportunities in the development and production of hybrid, electric, alternative fuel and diesel heavy duty transit buses, luxury motor coaches and tour buses. On July 11, 2011, the Company formed Cleantech Energy, Inc. as a wholly owned subsidiary. In February 2013, the Company announced that acquired from Crown Equity Holdings Inc., Crown Buy Rite.

On July 25, 2011, the Company formed Cleantech Exploration Corp. as a wholly owned subsidiary. On October 31, 2011, the Company acquired a 40% interest in Ortigalita Power Systems, LLC a waste power generating project in California.

Advisors' Opinion:

• [By CRWE]

  Cleantech Transit, Inc. (OTCMKTS:CLNO) (www.cleantechtransit.net) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries. CLNO currently has surged (+30.00%) up +0.030 at $.130 with 1,747,826 shares in play at the close (ref. google finance June 21, 2013 ��Close). Last Friday morning (June 21, 2013), this company hit as low as $.102 and as high as $.148. The fact that their is over a million shares in play all week only ignites the excitement that CLNO brings to the table.

  Last Friday (June 21) CLNO�� daily range was at ($.148 – $.102) currently at $.130 would be considered a (+11718.18%) gain above the 52 wk low of $.0011. Eventhough CLNO has surged (+30.00%) up +0.030 at $.130 with 1,747,826 shares in play at the close (ref. google finance June 21, 2013 ��Close), the stock is up +8566.67% since the concerning dates of December 24, 2013 ��June 21, 2013. +8566.67% is the 6 month high and rightly so.

  Earlier this month (June 3), CLNO acquired control of Discovery Carbon Environmental Securities Corporation (��iscovery��. The acquisition advances the strategy of developing significant market share in the alternative clean energy sector. Discovery�� proprietary GreenTrees��for renewable energy, and EvoCert��environmental credits for offsetting business and individual carbon foot prints are some of the exciting products Discovery provides to clients throughout the world.

  CLNO reported last Friday (June 21), that it has acquired 81% of the issued and outstanding shares of Discovery Carbon Environmental Securities Corporation (��iscovery��, a Nevada corporation. The acquisition advances the strategy of developing significant market share in the alternative clean energy sector. Discovery�� proprietary GreenTrees��for renewable energy, and EvoCert��environmental credits for offsetting business and individual carbon foot prints are some of the excitin

• [By CRWE]

  Today, CLNO has surged (+0.04%)�0.000 at $.259 with�229,233 shares in play thus far (ref. google finance Delayed: 3:24PM EDT July 9, 2013).

  Cleantech Transit, Inc. (OTCMKTS:CLNO) (www.cleantechtransit.net ) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries. Today, CLNO has surged (+0.04%) 0.000 at $.259 with 229,233 shares in play thus far (ref. google finance Delayed: 3:24PM EDT July 9, 2013). Earlier this morning (July 8), this company hit as low as $.222 and as high as $.265.

  Could it be�because of�CLNO previously announced it plans to change its name to EQCO2, Inc. and also the plan for a 1 for 5 forward stock split for its common stock? (July 5) Cleantech announced that the process for both is underway and is expected to occur before the end of July.

  FYI ��(July 5) Cleantech Transit, Inc. Files SEC form 8-K http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9389837

  FYI ��(July 3) Cleantech Transit, Inc. Files DEF 14C http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9386382

• [By CRWE]

  Cleantech Transit, Inc. (OTCMKTS:CLNO) (www.cleantechtransit.net) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries. CLNO currently has surged (+15.63%) up +0.025 at $.185 with 478,777 shares in play thus far (ref. google finance Delayed:� 12:23PM June 25, 2013).�Earlier this�morning (June 25, 2013), this company hit as low as $.16 and as high as $.19. The fact that their is�under a million shares in play thus far only ignites the excitement that CLNO brings to the table.

  Today�(June 25) CLNO�� daily range was at ($.19 – $.16) currently at $.185 would be considered a (+16718.18%) gain above the 52 wk low of $.0011. Eventhough CLNO has surged (+15.63%) up +0.025 at $.185 with 478,777 shares in play� thus far (ref. google finance Delayed:� 12:23PM June 25, 2013), the stock is up +12233.33% since the concerning dates of December 26, 2013 ��June 25, 2013. +12233.33% is the 6 month high and rightly so.

  Earlier this month (June 3), CLNO acquired control of Discovery Carbon Environmental Securities Corporation (��iscovery��. The acquisition advances the strategy of developing significant market share in the alternative clean energy sector. Discovery�� proprietary GreenTrees��for renewable energy, and EvoCert��environmental credits for offsetting business and individual carbon foot prints are some of the exciting products Discovery provides to clients throughout the world.

  CLNO reported last Friday (June 21), that it has acquired 81% of the issued and outstanding shares of Discovery Carbon Environmental Securities Corporation (��iscovery��, a Nevada corporation. The acquisition advances the strategy of developing significant market share in the alternative clean energy sector. Discovery�� proprietary GreenTrees��for renewable energy, and EvoCert��environmental credits for offsetting business and individual carbon foot prints are some of the e

• [By CRWE]

  Cleantech Transit, Inc. (OTCMKTS:CLNO) (www.cleantechtransit.net ) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries.�Today, CLNO has�shed (-1.60%) down�-0.004 at $.246 with��827,051 shares in play thus far (ref. google finance Delayed: 12:39PM EDT�July 3, 2013). Earlier that same morning (July 3), this company hit as low as $.20 and as high as $.269. The fact that their is�under a million shares in play today thus far�and for the last 3 weeks plus their�has been�over a million shares in play only ignites the exciting potential growth this company might bring to the table along with active savvy investor interest.

  FYI – (July 3) Cleantech Transit, Inc. Files�DEF 14C�http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9386382

10 Best Safest Stocks For 2014: Davide Campari(CPR.MI)

Davide Campari-Milano S.p.A., together with its subsidiaries, operates in the beverage sector worldwide. The company offers spirits under the Campari, Carolans, SKYY Vodka, Wild Turkey, Aperol, Cabo Wabo, CampariSoda, Cynar, Frangelico, Glen Grant, Ouzo 12, X-Rated Fusion Liqueur, Zedda Piras, Dreher, Old Eight, and Drury's brands; sparkling and still wines, including aromatized wines, such as vermouth wines under the Cinzano, Liebfraumilch, Mondoro, Odessa, Riccadonna, Sella & Mosca, and Teruzzi & Puthod names; and soft drinks under the Crodino and Lemonsoda brands. It also provides semi-finished goods; and is involved in bottling activities. The company was founded in 1860 and is headquartered in Sesto San Giovanni, Italy. Davide Campari-Milano S.p.A. is a subsidiary of Alicros S.p.A.

Top Clean Energy Companies To Buy Right Now: Latin American It(LAM.L)

Lamprell plc, through its subsidiaries, provides diversified engineering and contracting products and services to the oil and gas, and renewables industry in the United Arab Emirates. The company builds marine jackup rigs, liftboats, wind farm installation vessels, and other offshore and onshore structures, including floating, production, storage, and offloading; undertakes engineering and construction projects for onshore and offshore sectors; and provides oilfield engineering services, including upgrade and refurbishment of land rigs, as well as of offshore jackup rigs. Its services also include non destructive testing (NDT), pre-heat, post weld heat treatment testing, specialized inspection services, and marine NDT services; and operations and maintenance support services for regional onshore and offshore operators. In addition, the company offers H2S detection and related services, H2S training, and consultancy services, as well as involved in the sale and rental of eq uipment. Lamprell plc was incorporated in 2006 and is based in Dubai, United Arab Emirates.

Top Clean Energy Companies To Buy Right Now: FKP Property Group (FKP.AX)

FKP Limited is a real estate investment holding manager. Through its subsidiaries, the firm operates through retirement, development, land and funds management and property investment. It primarily engages in development comprising commercial, industrial, retail, and residential; construction; land subdivision; retirement village ownership and management; property investment; and asset management. The firm invests in real estate markets of Australia. From Land division, it engages in the acquisition of land for development and sale ranging from small infill projects to master planned residential communities. From Property Development, the firm engages in the development and construction of residential commercial, retail, retirement villages, and industrial properties. From the Retirements division, the firm engages in the management of retirement villages. Through Investment and Funds Management, it engages in the investment and management of income producing properties, a nd managed investment schemes. FKP is based in Brisbane, Australia.

Here's How Millionaires Get Financial Advice

Top 10 Small Cap Stocks To Invest In 2014

By Hal M. Bundrick

NEW YORK (MainStreet) � Wealthy investors are increasingly seeking professional guidance in money matters, with 82% of millionaires using a financial advisor in 2013, up 4% from last year. A Spectrem study of affluent households reveals that more than one-third (35%) of all affluent households surveyed admit that have worked more with an advisor in the last two years than in previous years. Fallout from the financial crisis is one reason why.

And regardless of the potential conflicts of interest, most of the wealthy investors surveyed still lean on full service brokers (35%) rather than independent financial planners (18%). Wells Fargo was the leading financial services provider of those surveyed, with an 8% share of investors, replacing Fidelity in the top spot, which tied with Morgan Stanley in second place, both with 7%. Bank of America-Merrill Lynch garnered 6% of affluent households' business and Edward Jones had 5%.

Younger investors prefer UBS and Bank of America-Merrill Lynch with an 8% market share of consumers aged 44 and younger. Middle aged millionaires 45-54 favor using Bank of America-Merrill Lynch (11%) while Fidelity is preferred by most (9%) senior investors aged 55-64. There is a distinct shift in advisor preference among younger millionaires, 44 years of age and younger. Rather than seeking a broker, these wealthy investors prefer guidance from an accountant (29%). Full service brokers still account for 28% of the advisors for younger investors, while 22% look to independent financial planners. But some wealthy investors still remain independent and prefer to manage their investments solo, as 18% of all ages of millionaires surveyed do not use an advisor at all. The study gathered opinions and satisfaction ratings of investors with a net worth of between $1 million and $5 million, excluding their primary residence. Regardless of the type of financial consultant they choose, overall advisor satisfaction among millionaires is up from 70% in 2011 to 73% in 2013. But among younger investors, satisfaction is just 62%, more than 10 points below the average. --Written by Hal M. Bundrick for MainStreet

One 10-Minute Trick That Beat the Market by 248%

"What's the simplest strategy to boost my returns?"

This is one of the most frequently asked questions I hear when I'm on the road. And most people expect a long, drawn-out answer.

But in reality, there's a single word - the one you're about to see - that can lead to huge performance gains...

How huge?

Try triple-digit huge - that's why I place a high priority on this technique in the Money Map Report's proprietary 50-40-10 Strategy. It's critical to the success tens of thousands of our subscribers have enjoyed over the years.

It's incredibly simple, too...

Rebalancing: Your "Buy Low/Sell High Guarantee"

Most investors haven't heard of "rebalancing." That's very surprising, given all the lip service Wall Street pays to fancy-pants diversification, hyping stocks, and day trading as a sure route to wealth these days.

What I like about rebalancing is that it's deceptively simple yet immensely profitable, because rebalancing forces you to buy low and sell high. There's no ambiguity, no emotion, and no second-guessing yourself.

What I positively love about rebalancing is that it can lead to greater profits, even if the markets drift lower. Not too many strategies can do that.

Rebalancing isn't difficult. It doesn't matter if you're a newly minted graduate with $1,000 to your name or a sophisticated investor with 50 years of experience and millions. Anybody can do it.

I want you to have every advantage possible when it comes to building wealth, so I'm going to share my take on rebalancing - what it is and how it works. Then, I'm going to show what it can mean for your money.

What It Means and How It Works

Technically speaking, rebalancing is the periodic adjustment of your investments to reflect market conditions that have changed. Boring... ugh!

The plain English definition is much more appealing: Rebalancing means you buy and sell specific investments that have gotten out of line with your plan in order to bring your risk down and boost your returns. (I love that part.)

Let's look at an example...

John has $20,000 split between two investments - stocks and bonds - each representing 50% of his assets. He's a balanced fellow and likes it that way. You probably know quite a few investors like John - who use index funds to invest just like he does, using some variation of the "set it and forget it" approach.

A year later, John finds that his stocks have appreciated by $5,000 while his bonds have fallen by $2,000. So his 50/50 split is now $15,000 in stocks and $8,000 in bonds, or 65/35. That doesn't sound too bad on the surface because the value of his overall portfolio is now $23,000.

But John's risks are mounting. Because his stocks have appreciated so much, he's got a far riskier portfolio than he thinks he does.

That's where many investors find themselves now.

The markets have run up 150.9% from their March 2009 lows, as of September 24, 2013. Anybody who's got stocks and who hasn't rebalanced is just asking for a repeat of 1999 - or 2007 if things roll over, or more appropriately, when they roll over.

Fortunately, the solution is very, very simple.

To get back to his preferred 50/50 split, John "rebalances" by selling $3,500 in stocks (and harvesting gains) and buying $3,500 in bonds (which have lost value and are therefore "on sale").

But, but, but...

I usually get a lot of questions involving hypotheticals when I'm discussing rebalancing right about now. Maybe you have a few on your mind... What if Obamacare gets defunded? What if the debt ceiling debate fails? What if the Middle East blows up? What if... What if... What if...

Many investors struggle with day-to-day volatility because they're terrified by news headlines and all the hype they see around them. Wall Street wants it that way, because it forces the uneducated to trade more, which, of course, puts fees in their pockets.

Rebalancing removes this from the mix. In fact, rebalancing is also largely immune from day-to-day gyrations. Consequently, it's one of the precious few strategies individual investors can use to their advantage when going up against the Armani Army, because it allows you to play offense when everybody else is playing defense.

The Difference Is Worth 248%

Over the years, I've learned that a picture is worth a thousand words (and potentially millions of dollars), which is why I want to share one with you now. It's one thing to talk about the power of rebalancing, but quite another entirely to see it in action.

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So I constructed a hypothetical $10,000 portfolio using the Money Map Method, with annual rebalancing, and another using a simple 50/50 split between stocks and bonds that was not rebalanced.

Just to put things in perspective, I also included the S&P 500 Index.

I ran the numbers from Aug. 1, 2000, to Sept. 23, 2013.  I chose these dates deliberately, because our markets experienced several wars, recessions, the dot.bomb crisis, two meltdowns, three meltups, the financial crisis, and a whole slew of political nonsense during this time frame.

Take a look...

As you can see, rebalancing made quite a difference, producing a total return of 292.16% versus the simple 50/50 non-rebalanced alternative, which turned in 44.09%, and the S&P 500, which offered up only 18.34%.

The merits of rebalancing are clear.

So, when should we do it?

There are all kinds of opinions, with some studies suggesting that you rebalance based on volatility, taxable gains, market conditions, or when asset classes have moved by more than a set percentage. Most of these become very complicated very quickly.

Keeping things simple is far easier.

That's why I'm a big fan of "calendar rebalancing." I recommend picking a day you will remember, like your birthday or the start of a new year. If you're math challenged, that's no excuse - especially when you can use one of the free rebalancing calculators found on the Internet.

Just be sure to do it consistently to keep fees down.

It's worth noting that Fidelity offers 65 commission-free iShares ETFs. So depending on your specific investments, it's conceivable that you could even rebalance for free.

And, if possible, add money to your account on a regular basis, because doing so can really turbo-charge the rebalancing process.

I'll be back with more Marketology soon to talk about doing just that.

Next: Here's another one of Keith's "Secrets to Superior Returns"