Investors cheer record-setting year on Wall St.

Stock investors will soon be in 401(k) heaven.

The broad U.S. stock market put an exclamation point on its record-breaking year on the final trading day of 2013, powering to yet another all-time high and posting its biggest percentage gain since 1997, or 16 years ago.

"Good to the last drop," is the way Dwayne Adams, a certified financial planner at Adams Wealth Management Group, summed up the best year for the Standard & Poor's 500 stock index since 1997. The closely tracked benchmark index rose 29.6%, a mega-move that will be reflected in much fatter retirement account balances when investors rip open their statements in coming weeks.

RAGING BULL: Nothing could stop red-hot stocks in 2013

2014 OUTLOOK: Will it be another slam dunk for stocks?

TOP PICKS: Investment strategists share their stock picks for 2014

The superlative returns posted by all of the nation's best-known indexes tell the story of a stock market in full-blown bull market mode, as the bull nears its fifth birthday in March. Blue-chip stocks skyrocketed in 2013. So did large-cap names. Small-company stocks posted big gains, too. As did tech stocks, which partied like it was 1999.

Stocks surged on the back of an improving economy, unprecedented stimulus from the Federal Reserve and a knack for dodging possible sinkholes. The stock market sidestepped the "fiscal cliff" at the start of the year, the Boston Marathon bombings, a near war with Syria, a government shutdown and a jump in yields on long-term government bonds to their highest level since July 2011. Wall Street also made peace with the Federal Reserve's decision to begin dialing back its market-friendly stimulus in the new year.

Performance statistics tell the story best.

• The Dow Jones industrial average finished the year up 26.5%, its best return since 1995. It closed the year out with its 52nd record close of the year, rising 72.37 points to 16,576.66. That pushed the bull market to an even more notable milestone: At! Tuesday's close the Dow is more than 10,000 points above its 2009 bear market low -- 10,030 points, to be exact.

LOSERS: Dow's worst performing stocks of 2013

• The S&P 500 soared nearly 30%, its best performance since a 31.01% jump in 1997. The large-company index also closed out the year with a fresh record, only the sixth time that has happened in its history, according to S&P Dow Jones Indices. It posted 45 record closes, the most in 15 years.

S&P 500: Winners and losers of 2013

* The tech-dominated Nasdaq composite was the biggest winner in 2013, racking up a gain of 38.3%, its seventh-biggest annual gain ever and its best since 2009 when it rebounded sharply from its bear-market low.

• The small-cap Russell 2000 also posted a 30%-plus gain and finished at a new record high. For the year, it skyrocketed 37%, marking its best annual return since 2003.

"2013 was a great year," says Gary Alexander of the Navellier mutual fund family. "The year was far better than most pundits thought possible last January."

Eli Lilly’s Lackluster Pipeline + Premium Valuation = Goldman Sachs Downgrade

Shares of Eli Lilly (LLY) have dropped this morning after Goldman Sachs downgraded the drug makers stock to Sell from Neutral, as they appear overvalued relative to competitors AbbVie (ABBV),  Merck (MRK), Johnson & Johnson (JNJ) and  Pfizer (PFE).

Reuters

Goldman’s Jami Rubin and team explain why they cut Eli Lilly:

Relative to our attractive view on Pharma, we see risk to the downside for LLY. LLY's
most important pipeline assets (diabetes and oncology) are undifferentiated or me-too (e.g. empagliflozin, insulin glargine), in our opinion. In particular, LLY's broad diabetes portfolio is likely to face further pricing pressure as payors demand discounts in exchange for formulary placement. While this is a common practice with most therapeutic drug categories, diabetes stands out as being more vulnerable to pricing pressure because new drugs in this class (DPP4s, GLP-1s, SGLT2s, etc.) are largely undifferentiated.

Even with an aggressive cost cutting program, we don't think LLY has gone far enough to address its upcoming challenges from patent expirations. Uncertainty around top-line visibility post 2014 exists as much today as it did a couple years ago when management came out with 2014 guidance. Yet, LLY trades at a premium valuation for a pipeline which we view as underwhelming, and prospects for major optionality from a potential break-up (highly unlikely) or another Alzheimer's – like opportunity in the next few years, seems limited.

Lilly trades at 16x 2015 earnings, Rubin notes, well above AbbVie’s 14x, Merck’s 12x and Johnson & Johnson’s 15x, all of which are rated Neutral. Pfizer, meanwhile, trades at 13x 2015 earnings and has more realistic potential for a break up.

Shares of Eli Lilly Lilly have dropped 1.3% to $49.95 today at 1:07 p.m., while AbbVie has gained 1% to $48.53, Merck has risen 0.4% to $46.97, Johnson & Johnson has ticked up 0.1% to $94.17 and Pfizer has dropped 0.4% to $31.21.

Start LTC Planning Now, Save a Bundle Later: Genworth

Families could save almost $11,000 per year on out-of-pocket expenses for long-term care if they started planning a little earlier, a report released Monday by Genworth found.

Genworth surveyed more than 1,200 caregivers and recipients for the “Beyond Dollars: A Way Forward” report. More than half of those who identified as caregivers said they had lost income because of those responsibilities.

Care recipients who use professional care were more likely to have planned for that eventuality. Forty percent of respondents who receive care at a day facility made plans ahead of time to meet those needs, compared with 23% of people who moved into a family member’s home.

Long-term care is still a difficult subject for clients. Thirty-eight percent of care recipients said they didn’t address their needs because they didn’t want to admit care was needed, and 28% said they didn’t want to talk about it. Twenty-three percent said they weren’t sure where to start.

Wendy Boglioli, national spokeswoman for Genworth and a former Olympic swimmer, has been in the long-term care industry since 1998. She says that sometimes, it’s the advisors who don’t want to bring up the subject of long-term care. “I’m seeing the shift more and more," she said. "Ten or 15 years ago, advisors didn’t want to talk about it, but it has shifted. If they’re a little leery, they just need to understand that they owe this conversation to every single client they have.”

That reticence shifts a significant financial and emotional burden to family members. Thirty-eight percent of caregivers said they could have avoided a lot of stress if care had started planning earlier. Thirty-five percent of recipients agreed.

Boglioli stressed that young clients need to talk about long-term care just as much as older clients. “Long-term care might seem forever away,” she said, but it’s important to “fill in the blanks for them to be able to see what is coming down the road because it’s all about being prepared.”

Boglioli said most clients in their 40s, 50s or 60s already have “a long-term care story or situation” or are expecting one in their near future. “They’re pretty in tune to needing that conversation.”

It’s important to include family members in long-term care planning. “Family is the backbone of caregiving in this county,” he said, while adding that emphasis on family as caregivers is going to change. Older generations were more likely to have large families whereas younger families are more likely to have only one or two children. She recounted a story about her own family.

“My mother is going to be 93. She will have been in a nursing home in Wisconsin going on three years. I see my mother if not every month, at least every six to eight weeks. I’m one of seven and we all rotate through, so we’re all spending a fair amount of money to fly and spend several days with my mother: you’ve got to get a hotel, rent a car, so there’s those kinds of expenses as well as the cost of the nursing home. My mother is in a nursing home that costs $8,000 a month. Now, the good news is I’m one of seven children, so the seven of us are paying that bill. If I were a single child or one of a few, it would be astronomical.”

She suggested approaching clients about bringing family members in for a meeting over the holidays when out-of-town guests are visiting. “I usually see it around Thanksgiving or early in January.”

Many feel they made a mistake by not purchasing long-term care insurance. Almost 60% of respondents who didn’t have a policy wish they’d purchased one. Of those, 59% feel it would have been easier on their finances and put less strain on their family.

“There are only four ways to pay for care,” Boglioli said. The first way is through family and their support. Advisors need to “walk clients through what that looks like for them,” Boglioli said, so they can understand how it will affect the care they receive.

Government programs are another possibility. While Medicare does not cover most long-term care services, Medicaid does. “Today Medicaid does if you are in poverty or indigent,” Boglioli said.

Another way to pay for care is to self-pay, although Boglioli pointed out that this is where planning can get difficult. “What are the financial things we can do early on to build that nest egg, but as you build it, do you really want to spend that money on care?”

Finally, of course, is an insurance policy. “An [LTC] insurance policy is the least expensive way to go.”

However, one of the biggest obstacles to long-term care planning is just putting it off, Boglioli said. “When it comes to long-term care conversations, there are physical issues — will I need care or be providing care — financial issues, emotional issues; how do I get that all together? How do I coalesce that into a plan?”

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Check out these related stories on ThinkAdvisor:

Fi360 Acquires Flagship Fiduciary Tool IPSAdvisorPro

Fiduciary die-hards will tell you that at the heart of the financial planning process—which has many steps—is the critical step and client deliverable of the investment policy statement.

The IPS, as it’s referred to by advisors, records how client monies will be managed, along with guidelines and constraints affecting investment decisions and responsibilities.

CFPs Norman Boone and Linda Lubitz literally wrote the book (“Creating an Investment Policy Statement,” FPA Press 2004) on the topic, and their IPSAdvisorPro has been the flagship software product in the financial planning field.

Now, that product may soon reach a much larger array of financial advisors with its acquisition by fi360, a leading fiduciary tools and training organization, which certifies fiduciary advisors through its AIF and AIFA designations.

Fi360 announced its purchase of IPSAdvisorPro on Thursday, without disclosing terms of the sale, and ThinkAdvisor reached out to Norm Boone to find out what the sale of his flagship product and life’s work means for the industry.

“We’ve been thinking and writing about this this for a long time,” says Boone, head of San Francisco-based Mosaic Financial Partners — "we" being him and his wife and business partner, Linda Lubitz Boone, head of Miami-based Lubitz Financial Group.

Boone wrote an article on the topic for the Journal of Financial Planning in 1992 and developed a product for Ibbotson in 1996 — “It was on an 8¼-inch floppy disk,” he says — before he and Lubitz published their 2004 book and then launched IPSAdvisorPro in 2006.

“I’ve been doing this for 26 years, and Linda for a little over 20,” Boone says. “And in our work with our clients, transparency became an increasingly important issue for us.

“We really believe that having a document that reports all of the agreements that we’ve made with the client about how we’ll invest the money helps their level of trust with us and eliminates the possibility of unhappy clients because they’ll get exactly what was expected.”

Those benefits of the IPS clearly resonated with fiduciary advisors. Today, IPSAdvisorPro has some 700 to 800 users — investment advisory firms whose advisor head count totals close to 2,000 or 3000, Boone says. He adds that the number of individual or institutional clients using the IPS through the software is now close to 50,000.

But there is plenty of room for expansion, Boone says.

“Our greatest competition is 1) people not writing investment policy statements and 2) advisors using basically a word document, creating a template and filling in the blanks later on.”

Boone says that latter approach has lots of drawbacks, including the likelihood of office mates (there are 19 staffers at his firm) not updating or messing up the template and the huge time and trouble it takes to input broad policy changes across all investment policy statements within the firm.

“If you buy new portfolio rebalancing [software] and you’ve got 150 clients, you need to go into each account and change each one of them,” he says.

Apart from the time savings, consistency and efficiency, the IPSAdvisorPro keeps advisors’ compliance officers happy.

“It relieves them of concern that [advisors] are making unwanted changes to the document.”

Boone says compliance officers will have even more reason to be happy with fi360’s acquisition, since the fiduciary firm has its own IPS tool, and Boone and Lubitz, who will serve fi360 as consultants, intend to combine the best features of both products.

“They have testing back end that allows the compliance officer to say, “You said you’d do X, now how has your performance been?’”

But perhaps the biggest benefit of the merger is fi360’s prominent position in the fiduciary marketplace.

“They have a greater presence than Linda and I had,” he says. Besides the untapped U.S. advisor marketplace, Boone says there is demand from the fiduciary communities in Canada, Australia, Japan, the U.K. and New Zealand, which fi360 is better positioned to meet.

The fiduciary training firm has been on an acquisitions roll, having acquired Ann Schleck & Co. and Financial Services Standards earlier this year.

“Most advisors haven’t known what should go into an IPS. [IPSAdvisorPro] has given them a starting point,” Boone says, adding that he is excited about where fi360 will now take it.

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Check out Dalbar: Advisors Should Sell Goals, Not Funds on ThinkAdvisor.

2014 Equus: Luxury for a modest price

In order to understand 2014 Hyundai Equus, you have to understand something about South Korean business culture: Big sedans come with big responsibilities. And if you're high enough up in a chaebol—one of the conglomerates that dominates the Korean economy—you get either a Ssangyong Chairman, a Kia K9 (to be sold later this year in the US as the K900), or a Hyundai Equus. You might also get a driver.

After a week with a 2014 Hyundai Equus Ultimate (starting MSRP $61,000, as equipped $68,920) I can see why a young person would put in 80-hour weeks climbing the ladder at Daewoo or Doosan. Updated and upgraded for 2014, the Equus is a reward, an incentive, a leather-clad reminder of why you worked so hard in the first place.

In Korea, the Equus may be the tradeoff for decades of sweat equity, but in America it's relatively easy to attain. Starting at $61,000 and fully-equipped at $68,920, the Equus is a relatively small indulgence as far as luxury sedans go. It also undercuts its main competitor—the Lexus LS460—by at least $10k. The Lexus is a better car, but only marginally: Despite the lower price, the Hyundai offers 95% of the Lexus' luxury and refinement. Statistically speaking, the two cars are almost indistinguishable.

Look past that label

On the outside, the LS460's exterior may be unassuming, but the Equus' freshened sheetmetal just looks anonymous. For 2014, it got a slightly refreshed front and rear plus new side mirrors, and it still looks vaguely like an older Mercedes S-Class. I'm a fan of the Equus' attractive proportions, chiseled lines, and the new "turbine" wheels, but there are some definite misses: On the tester I drove, a front-view camera hanging from the grille was an unwelcome proboscis, and the winged badge was downright cryptozoological. The name itself will still make drama majors uneasy, and typographers might wonder why it's spelled out in a generic serif font.

CAR TECH: Your car may be automated before it's electric

CAR TECH: Tailpipe! photosynthesis may shash emissions

Inside, both the Lexus and Hyundai are welcome sanctuaries, but the Equus lacks Lexus-level refinement. For instance, a maddening, small gap between panels interrupts the flow of the Equus' wooden dash, and a few hard plastic touch points cheapen the whole feel. Lexus has an excellent—albeit pricey—infotainment system, while Hyundai's lacks apps and internet connectivity. In fact, aside from an optional heads-up display, more customizable options, and standard BlueLink and Connected Care telematics services, the tech is nearly identical to what you could get in a well-equipped Elantra.

Service still is a strong point for the Equus. Though owners don't get a free iPad anymore, they do get three years or 36,000 miles of free maintenance, and they never have to set foot in a dealership. Schedule maintenance or a repair through BlueLink and a valet will whisk your car from your home or office, replacing it with a complimentary loaner until your Equus is ready.

Fun to drive, fun to be driven

On the road, the Hyundai lacks the LS460's monumental sense of balance, but comes darn close. Plus, its 5.0-liter, 429-hp. V8 is more powerful and won't protest if you mash the gas pedal. It'll hurtle the mighty Equus forward with the force of a siege weapon. If you're getting miles per gallon in the mid-teens anyway, you might as well have some fun. (Equus is rated 15 mpg city, 23 highway, 18 combined.

If you want to have real fun, you're going to want to be driven. Equipped with the Ultimate package's dual-screen rear-seat entertainment system and supremely comfortable heated, cooled, and reclining outboard seats, you may consider spending the money you saved by buying an Equus on a pa! rt-time c! hauffeur.

It's just that good. Press the appropriately-named "Relax" button and the front passenger seat will collapse, opening up more legroom than most airlines' business-class seats. Roll up the powered sunshades and nobody will know you're napping. Infotainment controls in the rear armrest mirror those up front, so you can give your driver directions just by entering an address in the nav system.

Without a driver, or a significant other who doesn't mind having you dozing in the backseat on long trips. I suspect most U.S. Equus buyers will skip the Ultimate option. Livery services, however, likely will be glad to spring for a car with a luxurious backseat and a value price.

A psychological barrier

More importantly, such fleets won't care about the relatively unknown Equus badge on the car, and the mainstream-brand Hyundai logo on the back.

But for individual buyers, part of the fun of driving a luxury car is announcing to the world that you've made it—or at least that you've made your latest monthly payment. The Equus telegraphs that you appreciate the finer things in life, but have reconciled your need to be coddled with a rational buying decision. Forgoing a high-end brand name just to save some cash requires some self-confidence, no matter how worthy a car is in its own right.

And, to be perfectly honest, that will be the ultimate compromise for most would-be Equus buyers. In Korea, an Equus is a status symbol. In the US, Hyundai's Elantra, Sonata, and Genesis stand out on their own merits, but the Equus needs some refinement before potential buyers stop comparing it to the LS 460. That's why Hyundai needs to make the next Equus truly exceptional versus rivals. Even if the difference between an Equus and an LS460 is statistically insignificant, it matters to buyers.

For more product reviews and news, visit Reviewed.com, a division of USA Today, and follow @ReviewedDotCom on Twitter.

Fidelity zaps more small RIAs with $2,500 quarterly fee

Fidelity Institutional Wealth Services will be charging more of its small registered investment advisers a $2,500 quarterly platform fee, beginning next month.

The firm will begin charging all firms with less than $15 million in assets under custody a $2,500 quarterly fee.

Previously, the minimum asset level to avoid the fee was $10 million.

Since 2008, Fidelity has required its new RIA clients to have $15 million, but has allowed assets to drop to $10 million before hitting them with the platform fee.

The two minimums were confusing, said Erica Birke, a Fidelity spokeswoman.

“We're just leveling at that $15 million level, just to simplify things for our clients and relationship managers,” she said.

An additional 100 of the firm's 3,200 RIA clients now will face the fee, doubling the number affected, Ms. Birke said.

Like advisers themselves, custodians want larger clients. But the new minimum could risk alienating some Fidelity advisers.

Brian Fenn, president of Carolina Capital Consulting Inc., ended his relationship with Fidelity after the firm dinged him for a platform fee last March.

“We had maybe $12 million with Fidelity, but had a client get divorced so that dropped to $9 million,” he said. “I’d completely forgotten about the minimum.”

Mr. Fenn said he got a $2,500 bill seven days before it was due, even though his contract specified an old rate of $1,200.

“They should have given me a certain amount of time to get” back over the minimum, said Mr. Fenn, who has moved his remaining Fidelity assets to his primary custodian, TD Ameritrade Institutional, where he runs about $190 million.

Ms. Birke stressed that Fidelity wants to help small advisers grow and avoid the fee, either by partnering with other firms or devising growth plans.

“We've had a lot of advisers who were small and are now substantial in size,” she said.

The new fee policy was reported earlier by the RIABiz website.

Chanos Indirectly Dings Brazil ETF...Again

The iShares MSCI Brazil Capped ETF (NYSE: EWZ) traded slightly higher in late trading Tuesday even after noted short-seller Jim Chanos, founder of Kynikos Associates, indirectly reiterated his bearish view on EWZ's two largest holdings.

Speaking at the Bloomberg Markets 50 Conference, Chanos responded to a question from Bloomberg's Tom Keene about how to play the recent bounce in emerging markets by saying "I'm looking at Petrobras."

Related: As Dalio Dances Dangerously With Brazil, Chanos Smiles.

That may not be a direct bearish call on Petrobras (NYSE: PBR), Brazil's state-owned oil giant, but it was less than a year ago at the Ira Sohn Conference that Chanos called Petrobras and Vale (NYSE: VALE), the world's largest iron ore producer two of his favorite shorts.

Chanos told attendees at Ira Sohn that every dollar Petrobras brings in is flowing back out, but that production is declining. A recent auction for licenses to explore Brazil's Libra field was disappointing as some of the largest U.S. and European oil companies opted not to participate due to high production costs and difficulties in working with the Brazilian government.

Chanos added that the Bloomberg conference that countries with exposure to iron ore are in trouble over the next 12 months. Two Petrobras and two Vale securities combine for nearly 22 percent of EWZ's weight.

On Monday, in what was generally a bullish assessment of emerging markets, JPMorgan told investors to stay away from sectors that are value traps, a group that includes Brazilian banks, according to Bloomberg. Financial services is EWZ's largest sector weight at 27.6 percent.

EWZ, the largest Brazil ETF with nearly $6.2 billion in assets under management, is up almost 12 percent in the past month.

For more on ETFs, click here.

Blackhawk Bancorp Reports Q2 2013 Results (OTCMKTS:BHWB, OTCMKTS:CLNOD)

Blackhawk Bancorp, Inc. (BHWB)

Today, BHWB remains (0.00%) +0.000 at $9.00 thus far (ref. google finance Delayed:   2:02PM EDT July 31, 2013).

Blackhawk Bancorp, Inc. previously reported net income $513,000 for the second quarter of 2013, a 31% drop compared to $745,000 earned in the second quarter of 2012. For the six months of 2013 the company's net income was $1,096,000, a 23% decrease compared to $1,423,000 earned the first six months of 2012.

Earnings per diluted share for the quarter decreased $0.11, to $0.16 compared to $0.27 per diluted share the second quarter of 2012. For the first half of 2013 the company earned $0.35 per diluted share, a 30% decrease compared to the $0.50 per diluted share earned the first half of 2012. The company had total assets of $593.8 million at June 30, 2013, a $34.0 million increase compared to $559.8 million at December 31, 2012.

Blackhawk Bancorp, Inc. (BHWB) 5 day chart:

EQCO2, Inc. (CLNOD)

EQCO2, Inc. (OTCMKTS:CLNOD) (www.eqco2.com) through its Discovery Carbon subsidiary, develops emissions offset strategies for companies, municipalities, and countries. Today, CLNOD has shed (-3.03%) down -0.005 at $.16 with 46,193 shares in play thus far (ref. google finance Delayed: 12:27PM EDT July 31, 2013).

CLNOD daily range is at ($.17 – $.16) thus far and currently at $.16 would be considered a (+79900%) gain above the 52 wk low of $0.0002 and rightly so. The stock is up +0.16 ( +8788.89%) since the concerning dates of February 1, 2013 – July 31, 2013. +8788.89% is the 6 month high.

EQCO2, Inc. (CLNOD ) day chart:

Weekend Edition: Porter Stansberry: Your bank account is in more danger than you thought

 Today, I (Porter) would like to share with you the primary secret of all central bankers... This secret explains why, despite rising wages and nominal economic growth, most people in America continue to get massively poorer.   Though you've probably heard about the concepts I'm going to explain, I'm pretty sure you don't fully understand them. But they're vitally important.   I'm talking about currencies and banking.    The best way to explain this secret is to show you the consequences of these policies. Imagine placing $10,000 in a two-year bank CD. You see this money as your "rainy day" fund to handle emergencies and special purchases.   Two years later, you go to the bank to retrieve your money. When you arrive, the teller explains that instead of having $10,000, you now have just $8,000.   To most people, it's absurd to think that placing money in a "safe" bank account could result in losing 20% of your wealth. After all, every reputable bank has a security department that prevents theft. Plus, you'd probably instantly spot the losses by looking at your monthly statements.    But the truth is, this exact thing happened to millions of Americans from 2006 to 2008. Every $10,000 placed into a conventional, U.S.-dollar bank account in early 2006 was worth 20% less two years later.   Amazingly, not one accountholder in 100 realized it. Not one accountholder in 100 understood the massive, hidden forces that caused this loss of wealth... which "clipped" 20% from every $10,000 in U.S. bank savings.   These hidden forces exist in the currency market. But most people have virtually no understanding of how that market works. We believe it's vitally important that you have a basic understanding of the currency markets and how governments around the world manipulate them... We want you to understand these forces so you can protect yourself... and even profit from the ongoing corruption of paper money.    Most people believe currency fluctuations don't affect them... or that the whole subject is just too boring to pay attention to. After all, how much can the value of your bank account really swing up and down? The answer is a lot.   Below is a 10-year chart of the U.S. dollar index from mid-2003 to mid-2013. This index measures the dollar's value against a basket of foreign currencies, like the euro and the Japanese yen. It's the generally agreed-upon measure of the dollar's global trade value.   One look at this chart, and you'll see that big moves in the value of your bank account happen more often than you think. Double-digit percentage changes in value are taking place in the span of months... not years.   Again, we state: If you think holding U.S. dollars in a bank account is a boring, conservative idea... think again.      Also... keep in mind that if you buy stocks, what you're really doing is simply moving your wealth out of dollars and into stocks. You are betting that stocks will rise in value versus the dollar. You do the same thing when you buy gold or real estate. You hope the asset you buy rises in value relative to the dollar.   Once again... by simply owning a bank account, you are making a currency bet. The same goes for owning stocks, real estate, or gold. There's just no way to escape the currency market.   Whether you like it or not, you're a currency trader.    Although the hidden forces of the currency market dominate our economy, you probably don't even know they exist. You won't learn about them from your parents. You won't learn about them from your friends. Even business classes at top universities are largely useless for learning these forces.   This is an enormous problem... one that could have catastrophic consequences for your well-being. As the U.S. government's reckless monetary policies kick us toward financial ruin, knowing about these hidden forces could mean the difference between bankrupting your family... or safely making a fortune.    One of my partners at Stansberry & Associates, Dr. Steve Sjuggerud, has studied and written about currencies for nearly 20 years. In fact, his PhD dissertation was about how currencies move.   I've asked him to share his immense knowledge and experience of these markets and forces with you. And he's written a new True Wealth currency "seminar."   In his presentation, he details how these forces work and their impact on every American. He also reveals several unique trades that will allow you to safely build a huge amount of wealth in the midst of currency fluctuations... including what he's calling "The Greatest Currency Trade of the Next 10 Years."   While Steve's recommended trades are related to currency movements, none of them involves risky, leveraged currency bets like most people think of when they hear "currency trade." These trades don't involve traditional currency trades at all (and all but one can be easily made in a conventional brokerage account).    Out of fairness to Steve's True Wealth subscribers, we can't say much more about this report here. The most important thing to remember is that big currency moves can cause huge "ripple" effects in your life. There's no escape from currency fluctuations. Even if you own a simple bank account, you are "long dollars." Your wealth is tied to the movements in the U.S. dollar.   Steve understands these forces better than anyone. He knows that stuffing money under your mattress won't save you from these powerful forces. He understands that you must harness the power of currencies if you hope to generate and grow your wealth in the coming years.   We're at a major crossroads in the currency markets. Our government is in a "no way out" situation with its finances. You can't afford to sit on your hands and watch your purchasing power decline.   Fortunately, Steve's new report will provide you with all of the education you need to navigate this market. Reading it will take you less than 30 minutes. At the end, you'll know more than most bankers and MBAs.   We're confident you'll agree the education you get from Steve's research is better than any book or course you can buy. And we believe the recommended trades in Steve's report are absolutely necessary for building wealth in the coming years. We're already receiving tremendous feedback on the report and its educational benefits. Here are just a few things readers are saying:  

•	Never had such a concise explanation about currencies combined with no nonsense usable investment info... thank you.
•	Hi Steve, Your article is simply fantastic.
•	Hey Steve, great issue, I learned a lot. I really value the educational issues the most. Porter has some great ideas and I love his insights too. I like the idea of having multiple ways to invest in an idea and I feel I understand what I am doing more with the more detailed explanations. I feel this kind of issue has much more value. This one is a keeper to be read again and again. Thanks.

   If you haven't read Steve's report yet, it's easy to get a copy. It's free with a zero-risk, money-back-guaranteed subscription to Steve's True Wealth service. We encourage you to sign up, access the report, and learn how to protect your finances. I'm sure you'll learn a lot from Steve's research. I know it will be worth your time. You can get started immediately right here. (This does not go to a long video.)   Regards,   Porter Stansberry

Why EWZ Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares MSCI Brazil Index Fund (NYSE: EWZ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at EWZ, and see what CAPS investors are saying about the ETF right now.

EWZ facts

Inception	July 2000
Total Assets	$5.8 billion
Investment Approach	Seeks investment results that correspond to the price and yield performance of the MSCI Brazil 25/50 Index. A capping methodology is applied that limits the weight of any single component to a maximum of 25% of the MSCI Brazil 25/50 Index.
Expense Ratio	0.6%
Dividend Yield	3.1%
1-Year / 3-Year / 5-Year Returns	(17.2%) / (9.7%) / (9.3%)
Alternatives	Market Vectors Brazil Small-Cap  SPDR S&P Emerging Latin America

Sources: Morningstar and Motley Fool CAPS.

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Just last month, one of those bulls, fellow Fool Matthew Argersinger (TMFMattyA), tapped EWZ as a particularly attractive bargain opportunity:

Emerging markets have sharply underperformed over the last two years, and Brazil is no exception. The Brazilian stock market is down something like 21% YTD. Here's betting on a turnaround and that the World Cup (2014) and Olympics (2016) will play a major role in reviving Brazil's economy.  

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Generac Completes Refinancing; Investors to Get $5-per-Share Dividend

Generator maker Generac (NYSE: GNRC  ) announced this morning it had completed the refinancing of its senior secured term loan credit facility and, as it previously promised, will use part of the proceeds to pay investors a special dividend of $5.00 per share, payable on June 21 to stockholders of record on June 12. 

Generac said the refinancing resulted in it incurring $1.2 billion of senior secured term loans that replaced its prior term loan facilities. The new term loans will mature in 2020, with interest initially accruing at LIBOR plus 2.75% with a LIBOR floor of 0.75%. Moreover, beginning in the second quarter of 2014, the spread to LIBOR of the new term loans can be reduced to LIBOR plus 2.50% if its net debt leverage ratio falls below 3.0 times.

Generac also obtained a one-year extension to the maturity date of its existing $150 million senior-secured, asset-based revolving credit facility. The extended revolving credit facility will terminate in 2018, but will continue to accrue interest on drawn proceeds using an "availability-based pricing grid" starting at LIBOR plus 2%.

As previously announced, the generator maker intends to use approximately $342 million of the proceeds from the new term loans to fund a special cash dividend to its stockholders of $5.00 per share. The company does not pay a regular dividend on its common stock. The remaining funds will be used for general corporate purposes and to pay related financing fees and expenses.

link

Mid-Morning Market Update: Markets Flat; Ford Posts Upbeat Profit

Related BZSUM #PreMarket Primer: Friday, October 24: Ebola Fears Weigh On Markets Cabela's Slips On Downbeat Results; Caterpillar Shares Jump

Following the market opening Friday, the Dow traded up 0.02 percent to 16,681.37 while the NASDAQ declined 0.01 percent to 4,452.53. The S&P also fell, dropping 0.04 percent to 1,950.13.

Leading and Lagging Sectors

In trading on Friday, telecommunications services shares were relative leaders, up on the day by about 0.88 percent. Meanwhile, top gainers in the sector included RRSat Global Communications Network (NASDAQ: RRST), up 3.4 percent, and China Mobile (NYSE: CHL), up 2.3 percent.

Energy services shares fell by 0.52 percent on Friday. Top losers in the sector included Basic Energy Services (NYSE: BAS), down 10 percent, and Clean Energy Fuels (NASDAQ: CLNE), off 6.1 percent.

Top Headline

Ford Motor Company (NYSE: F) reported better-than-expected third-quarter earnings.

The Dearborn, Michigan-based company posted quarterly net income of $835 million or $0.21 per share, down from $1.27 billion, or $0.31 per share, in the year-ago period. Its pretax profit slipped to $1.18 billion, or $0.24 per share, versus $2.6 billion, or $0.45 per share.

ts revenue dropped to $34.9 million from $35.8 million. Analysts were expecting a profit of $0.19 per share on revenue of $33.11 billion.

Equities Trading UP

Digital River (NASDAQ: DRIV) shares shot up 46.84 percent to $25.52 after the company agreed to be acquired by an investor group led by Siris Capital Group for $26.00 per share in cash.

Shares of BJ's Restaurants (NASDAQ: BJRI) got a boost, shooting up 20.12 percent to $39.88 on stronger-than-expected Q3 earnings.

KLA-Tencor (NASDAQ: KLAC) shares were also up, gaining 9.72 percent to $77.90 after the company reported better-than-expected Q1 results. The company announced a $16.50 per share special dividend and added 3.6 million shares to buyback.

Equities Trading DOWN

Shares of DryShips (NASDAQ: DRYS) were down 26.13 percent to $1.48 after the company priced 250 million shares of common stock at $1.40 per share.

Pandora Media (NYSE: P) shares tumbled 12.65 percent to $20.20. The company reported upbeat quarterly results and raised its outlook for the fourth quarter and full year.

Amazon.com (NASDAQ: AMZN) was down, falling 7.17 percent to $290.73 after the company reported weaker-than-expected third-quarter results and issued a weak sales forecast for the holiday quarter.

Commodities

In commodity news, oil traded down 1.28 percent to $81.04, while gold traded up 0.30 percent to $1,232.80.

Silver traded up 1 percent Friday to $17.33, while copper rose 0.39 percent to $3.05.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.30 percent, the Spanish Ibex Index rose 0.12 percent, while Italy’s FTSE MIB Index gained 0.03 percent. Meanwhile, the German DAX slipped 0.40 percent and the French CAC 40 declined 0.29 percent while UK shares dropped 0.41 percent.

Economics

Sales of new homes gained at an annual rate of 467,000 in September, versus a revised 466,000 in August. However, economists were expecting sales rate to reach 470,000.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Global Econ #s

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Related Articles (AMZN + BAS) Mid-Morning Market Update: Markets Flat; Ford Posts Upbeat Profit Morning Market Losers Amazon Fire TV Selection Triples Since Launch Benzinga's Top #PreMarket Losers #PreMarket Primer: Friday, October 24: Ebola Fears Weigh On Markets

Harley-Davidson recalls all 2014 Touring motorcycles

Harley-Davidson is recalling all 2014 Touring bikes, including the Road King, pictured here. NEW YORK (CNNMoney) Harley-Davidson is recalling about 126,000 motorcycles over a problem with the clutch that could cause crashes.

The recall applies to all model year 2014 Touring bikes, including the three-wheeled trikes and custom designed bikes.

Last October, Harley-Davidson (HOG) recalled a smaller number of 2014 Touring motorcycles for an issue with the same part.

The hydraulic clutch may not disengage and the bike could crash, likely by tipping over, spokeswoman Maripat Blankenheim said.

Harley-Davidson has connected 19 accidents and no serious injuries to the issue. Several of the accidents occurred during the company's safety testing, she said.

The fix involves rebuilding the master clutch cylinder and takes less than an hour.

Owners were sent a letter about the recall in the last week.

Separately, the company is recalling about 1,400 Street bikes for a possible fuel tank leak. No injuries or accidents were reported.

The models are the 2015 XG500 and XG750.

The company said dealers would inspect the tank, determine if it is faulty, and, if necessary, order a replacement tank.

  Hear the new electric Harley-Davidson

5 reasons to worry about Scottish vote

Recent opinion polls show Scots could vote to break away from the United Kingdom on September 18. LONDON (CNNMoney) Investors are selling British stocks and the pound before Scotland votes next week on whether to break away from the United Kingdom.

A vote in favor of independence would end a 307-year union with England and have far reaching consequences for the economy, currency, banks and industry. There could also be knock-on effects across Europe.

Here are five things you need to know:

1. Currency mess: The pound hit a 10-month low against the dollar this week as opinion polls swung in favor of voters who want to break away from the U.K.

Uncertainty over which currency an independent Scotland will use, and the impact of a messy divorce on the U.K. economy, is largely to blame.

Independence campaigners want to continue to use the pound in a currency union with England, but U.K. lawmakers say they're not ready to share. And even if they were, the Bank of England would likely insist on tough budget rules that could mean painful austerity for Scotland.

Scottish nationalist leader Alex Salmond has refused to outline a 'Plan B', though he's hinted that Scotland may continue to use the pound without U.K. permission. Another option would be to create a new, untested currency.

The euro, if an option at all, would be years away. (See "EU: In or out?" below.)

2. The debt debate: In an early move to reassure markets, the U.K. government said it would honor all its debts -- including Scotland's share -- if there is a split.

However, under this scenario, an independent Scotland would owe Britain as much as £130 billion -- or roughly 10% of total U.K. public debt.

Supporters of independence say they're ready to pay, and are confident Scotland could manage its debts with greater ease once independence is established.

However, credit ratings agency Standard & Poor's cautions that Scotland's economy -- which would be similar in size to Portugal -- would be less resilient to shocks because of its greater dependence on volatile earnings from the oil and gas industry.

3. All about oil: The U.K. is the largest oil producer in the EU, and about 90% comes from areas that are likely to be claimed by an independent Scotland.

The U.K. is also likely to want a share of current production and reserves, but most analysts expect an agreement could be reached o! n divvying up the assets.

There are deeper divisions, however, over how much the remaining oil is worth -- a calculation of much greater significance to the future of the Scottish economy.

Independence campaigners estimate Scotland's remaining oil is worth about £1.5 trillion. The U.K. government says it's less than one-tenth of that figure.

4. A financial giant: Shares in British financial institutions based in Scotland, such as Royal Bank of Scotland (RBS) and Lloyds (LYG), have been battered by concerns that a vote in favor of independence could damage their business. RBS has said it could hurt its credit rating and raise costs.

Scotland's outsized banking sector would be 12 times the size of its economy, raising concerns about the country's ability to deal with a future financial crisis.

Large banks and insurers may even be forced to move their headquarters out of Scotland and into London.

Leading this potential migration could be investment firm Standard Life (SLFPF), which has been based in Scotland for roughly 190 years.

"If anything were to threaten [our business] we will take whatever action we consider necessary -- including transferring parts of our operations from Scotland," said Standard Life chairman, Gerry Grimstone.

  Pound slides on Scottish uncertainty

5. EU: In or out? Independence campaigners want Scotland to remain in the EU.

But an independent Scotland would most likely be treated as a new state, and therefore have to apply for membership. That process can take years and all 28 members would have to approve the application -- something some may be reluctant to do for fear of encouraging their own separatist movements.

And there's another potential sting in the tail that could be far! more dam! aging for the U.K.

Prime Minister David Cameron has promised a vote on Britain's membership of the EU by the end of 2017, assuming he wins next year's election.

"For the rest of the U.K., losing relatively pro-EU Scotland would raise the risk of a Brexit from the EU," warned Robert Wood, chief UK economist at Berenberg bank.

Mid-Day Market Update: Kroger Surges On Upbeat Results; Pier 1 Shares Slide

Related KEP Mid-Afternoon Market Update: Kroger Surges On Upbeat Results; Pier 1 Shares Slide Mid-Morning Market Update: Markets Mostly Flat; BlackBerry Results Beat Estimates

Midway through trading Thursday, the Dow traded down 0.22 percent to 16,870.34 while the NASDAQ declined 0.27 percent to 4,351.03. The S&P also fell, dropping 0.10 percent to 1,955.11.

Leading and Lagging Sectors

Utilities sector was the top gainer in the US market on Thursday. Top gainers in the sector included Cleco (NYSE: CNL), Korea Electric Power (NYSE: KEP), and Regency Energy Partners LP (NYSE: RGP).

Technology shares fell around 0.27 percent in Thursday’s trading. Top decliners in the sector included TechTarget (NASDAQ: TTGT), down 8.9 percent, and ChinaCache International Holdings (NASDAQ: CCIH), off 4.6 percent.

Top Headline

BlackBerry (NASDAQ: BBRY) reported a narrower-than-expected fiscal first-quarter loss.

BlackBerry posted its quarterly GAAP net income of $23 million, or $0.04 per share, versus a year-ago loss of $84 million, or $0.16 per share. Excluding certain items, the company lost $0.11 per share.

Its revenue fell 1% to $966 million from $976 million. However, analysts were expecting for a loss of $0.28 per share on revenue of $1.047 billion.

Equities Trading UP

Measurement Specialties (NASDAQ: MEAS) shares shot up 10.50 percent to $86.19 after the company agreed to be acquired by TE Connectivity (NYSE: TEL) for $86 cash per share.

Shares of The Kroger Co (NYSE: KR) got a boost, shooting up 5.65 percent to $49.94 after the company reported strong Q1 results and raised its FY outlook.

BlackBerry (NASDAQ: BBRY) shares were also up, gaining 11.76 percent to $9.27 after the company reported a narrower-than-expected first-quarter loss.

Equities Trading DOWN

Shares of Pier 1 Imports (NYSE: PIR) were 12.19 percent to $16.04 after the company reported a drop in its fiscal first-quarter profit and lowered its forecast.

KBR (NYSE: KBR) shares tumbled 9.73 percent to $23.76 after the company reported a Q1 loss of $0.29 per share on revenue of $1.63 billion. The company said it would undergo a strategic review of its businesses.

Rite Aid (NYSE: RAD) was down, falling 3.49 percent to $7.18 after the company reported a drop in its first-quarter earnings. Rite Aid’s quarterly profit declined to $41.4 million, or $0.04 per share, from a year-earlier profit of $89.7 million, or $0.09 per share.

Commodities

In commodity news, oil traded up 0.14 percent to $106.12, while gold traded up 2 percent to $1,298.10.

Silver traded up 2.74 percent Thursday to $20.32, while copper rose 0.10 percent to $3.06.

Eurozone

European shares were higher today.

The eurozone’s STOXX 600 surged 0.58 percent, the Spanish Ibex Index gained 0.68 percent, while Italy’s FTSE MIB Index rose 0.85 percent.

Meanwhile, the German DAX gained 0.74 percent and the French CAC 40 climbed 0.72 percent while UK shares gained 0.45 percent.

Economics

US initial jobless claims fell 6,000 to 312,000 in the week ended June 14. However, economists were projecting claims to reach 314,000 in the week.

The Philadelphia Fed's manufacturing index rose to 17.80 in June, versus a reading of 15.40 in May. However, economists were expecting a reading of 14.0.

The Conference Board's index of leading indicators increased 0.5% to 101.7 in May.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: Earnings News Eurozone Futures Commodities Economics Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular UPDATE: Morgan Stanley Initiates Coverage On BlackBerry Fuel Cell Stocks Rally Amid Bullish Analyst Comments Breakdown Of Amazon Phone Opportunity By SunTrust Advances In HIV, Hep C Treatments Could Spark Renewed Interest In Biotech Stocks Wells Fargo Sees 90% Probability Of Merger Between Reynolds, Lorillard 5 Stocks Expected To Grow In The Natural Foods Industry Related Articles (CCIH + BBRY) Market Wrap For June 19: Stocks Little Changed, Gold and Silver Higher Mid-Afternoon Market Update: Kroger Surges On Upbeat Results; Pier 1 Shares Slide BlackBerry Q1 Earnings Conference Call Highlights Mid-Day Market Update: Kroger Surges On Upbeat Results; Pier 1 Shares Slide Mid-Morning Market Update: Markets Mostly Flat; BlackBerry Results Beat Estimates Fed Makes Everybody Happy - Ahead of Wall Street

Report: YouTube to acquire Twitch for $1 billion

Google-owned video service YouTube may be on the verge of a major acquisition.

Variety reports YouTube will acquire Twitch, the video game streaming service that surged in popularity with the launch of the PlayStation 4 and Xbox One, for $1 billion.

The report, which cites "sources familiar with the pact," is an all-cash offer and will be announced imminently.

Twitch declined comment to USA Today on the report.

A Wall Street Journal report downplayed the possibility of an imminent sale, claiming the two companies were in talks, and that Twitch could end up raising more funding instead of selling the company.

According to The Verge, Google is one of several companies interested in Twitch. Xbox One makers Microsoft were reportedly among the companies that made a serious offer.

The service allows video game players to stream live action from their devices. Initially available on PC, Twitch launched apps for the PS4 and Xbox One video game consoles that let users directly broadcast their gameplay from the device.

Twitch claims about 45 million visitors to its site each month.

Follow Brett Molina on Twitter: @bam923.

Is the US Energy Independent?

Michael Peterson, shares his forecast for the direction of US oil prices in 2014, and where they stand in direct relation to the global energy community.

TERRY:  I’m Terry Savage from MoneyShow.com with Michael Peterson, senior analyst at MLV and Company.  You are a specialist in energy and commodities.  I want to focus on energy on right now.  The United States is now energy independent.  We can export more than we can import.  It’s a pretty exciting turn of events.  It should mean that energy prices come down, right or wrong?

MICHAEL:  I wouldn’t say that we’re yet independent.  We’re certainly self-supplying more than we have in times past.  On a global basis, I don’t think that U.S. production will necessarily drive prices in one direction or another too much because you have to remember OPEC has been serving as a balancing function.  For every barrel that we produce, all else being equal, OPEC is really going to be in a position of taking a barrel offline to balance the market.

TERRY:  Is that a good thing?

MICHAEL:  For the U.S.?  Absolutely it’s a good thing.  We benefit not only from enhanced production and additional security of self-supplying, we also have a circumstances where we’re less reliant and less exposed to external factors namely OPEC.

TERRY:  What happens to prices if OPEC says we don’t want to let prices fall, we just won’t drill as much or pump as much.  What happens to energy prices in 2014?

MICHAEL:  For decades, OPEC has served that role.  They will increase or decrease output to balance the market.  They look at inventories with price kind of falling out as a secondary consideration.  I think that their function of balancing the markets is likely to persist in 2014.  We’re over supplying the global market by let’s say a quarter of a million barrels per day.  It ink there is some chance that they might want to take some barrels off line.  Two reason for that.

TERRY:  Before we get into the depths of that, give me the price of oil at the end of the year.

MICHAEL:  I think the price of oil is going to be about $100.  I don’t think we’ll see a meaningful change.

TERRY:  To stay around there.

MICHAEL:  We’ll have a lot of volatility between here and there for sure, but I don’t expect to see that prices will run an average per year.

TERRY:  Natural gas, not necessarily parallel as we’ have seen over the last four or five years.  What’s the outlook for that?  We’ve had a very cold winter and of course a surge in price recently.

MICHAEL: I think the prospect for natural gas long term is great, near term is very modest.  I would say $4 prices on average in 2014.

TERRY:  One last thought, if you were to invest in the energy sector, you look at your portfolio, what do I do in energy that’s a big field, what would you consider buying?

MICHAEL:  I would look at parts of energy that have an opportunity to grow independent of the commodity.  We just said prices are likely to be largely unchanged 2013 to 2014.  I would look for companies that have an ability to either increase volumes and grow their earnings that way or benefit from efficiencies.

TERRY:  Give us some names.

MICHAEL:  Mid-Com Energy is a great master Limited Partnership.  They’re focused on secondary recovery within the oil patch meaning after a field has exhausted its normal productive capacity, Mid-Com comes in with water floods and reinvigorates the field.

TERRY:  There’s a lot to know.  Where do we find out more of your thoughts?

MICHAEL:  www.mlvco.com.

TERRY:  Thank you very much for joining us.  Michael Peterson of MLV.  I’m Terry Savage from MoneyShow.com.

Mattel Takes Aim at Lego, Buys Mega Bloks Maker for $460 Million

Mattel (MAT), the world's largest toymaker, agreed to buy Mega Brands (MB) for $460 million, acquiring the biggest challenger to Lego A/S in the construction-toy market. Mattel is offering C$17.75 ($16) a share, according to a statement today, a 36 percent premium over yesterday's closing price. The board of Montreal-based Mega Brands unanimously approved the transaction, and investors holding 39 percent of the stock, including Chief Executive Officer Marc Bertrand and Fairfax Financial Holdings (FFH), agreed to the deal. The purchase of Mega Brands, the world's second-largest maker of snap-together blocks, will fill a product hole for Mattel. It doesn't have its own construction line, locking it out of a $4 billion market in the U.S. and Europe. The category also is a bright spot in a toy industry that has seen growth stall in the U.S. Mattel considered starting its own construction line, then opted instead to buy Mega Brands because it would be faster and less risky, Mattel CEO Bryan G. Stockton said on a call with reporters. Mattel got its first taste of construction in 2012 when it debuted blocks for its Barbie brand through a licensing deal with Mega Brands. Mattel realized that replicating this kind of expertise would take years, Stockton said. 'About Growth' "This acquisition is all about growth," Stockton said. "We see an opportunity to expand our brands in this category across boys, girls and preschool." Mattel shares rose 0.8 percent to $37.44 at 10:34 a.m. in New York. They had declined 9 percent over the past year through yesterday. Shares of Montreal-based Mega Brands surged 36 percent to C$17.73 today in Toronto. Mattel is coming off a lackluster holiday season, with sales sinking 6.3 percent -- the biggest quarterly drop since 2009. The El Segundo, California-based toymaker has looked to acquisitions to boost sales in the past. In February of 2012, it paid $680 million to buy HIT Entertainment, owner of Thomas the Tank Engine. It also acquired Fisher-Price for $1.1 billion in 1993, Tyco Toys for $755 million in 1996 and American Girl for $700 million in 1998. Hasbro (HAS) -- the world's third-largest toymaker, after Mattel and Lego -- has shied away from making large acquisitions to enter categories. It started its own building brand, KRE-O, in 2011. Mega Brands' Mega Bloks is more established, though that company's sales are still about a 10th the level of Lego's. Lower Margins Today's deal should close next quarter. It's expected to reduce this year's earnings because Mega Brands has lower gross margins, Mattel said. After that, the transaction should add to profit as Mattel uses its distribution and manufacturing scale to reduce costs and its marketing skill to drive sales, the company said. "This rounds out their portfolio," said Sean McGowan, an analyst at Needham & Co. in New York. Mattel will be able to expand the brand quickly by moving it into countries where Mega Bloks aren't currently sold, he said. Mega Brands is only in about half of Mattel's markets. Mattel will continue to look for acquisitions in toy categories where it doesn't have much of a presence, the company said. Fairfax Investment Fairfax, the Toronto-based holding company run by CEO Prem Watsa, is Mega Brands' largest shareholder, with a 19 percent stake, according to data compiled by Bloomberg. Fairfax bought into the company in 2008, purchasing C$64 million in convertible debentures as part of the toymaker's recapitalization plan. Fairfax, also the biggest shareholder of smartphone maker BlackBerry (BBRY), acquired 65 million shares in 2010. Mega Brands stock had dropped about 75 percent since the closing of the debentures purchase. At its peak in December 2005, Mega Brands was worth C$552.40 a share. The company was forced into a major recall and paid a penalty in the U.S. after children swallowed magnets that detached from its toys. Bertrand, the CEO, will serve as an adviser for a year and Mega Brands' headquarters will stay in Montreal, Mattel said.

10 Weird Things Thieves Steal

Cars, smartphones, jewelry, and cash are among the many valuable items most people expect thieves to target. As a result, Americans take precautions to keep such possessions safe. Not many, however, would think to lock up their Nutella, pregnancy tests, or Tide laundry detergent. Yet, these everyday, ordinary household products are among the most commonly stolen goods.

Click here to see 10 weird things thieves steal

Some stolen items seem unusual because their value is not easily visible. For example, thieves steal catalytic converters for the platinum. Frank Scafidi of the National Insurance Crime Bureau (NICB) gave the example of manhole covers, as well as a variety of other metal objects, that are often stolen to be resold as scrap metal. Incidents of these kinds of theft have risen considerably, likely due to the rising price of metals like copper, and platinum.

Similarly, the production of maple syrup relies heavily on weather patterns. With poor sugaring conditions in recent years, the price of sap and maple syrup have risen considerably, increasing the potential reward for thieves targeting the product. Another grocery item, steak, has also become more vulnerable to shoplifting due to rising prices.

Another explanation for unusual incidents of theft is unmet demand. In the case of shrubbery theft, for example, collectors are willing to pay large sums for rare and valuable plants –even illegally. Nutella, which is relatively expensive and in high demand, is a commonly stolen product, according to the National Retail Federation (NRF).

According to Rich Muller, senior advisor at the National Retail Federation (NRF), the "easiest thing to steal is getting stolen, not necessarily for its desirability." So, while intrinsic value and price increases are important factors, a thief ultimately wants to avoid getting caught.

24/7 Wall St. consulted the National Retail Federation and the National Insurance Crime Bureau to identify a variety of commonly stolen objects. We also reviewed various news sources to identify 10 of the strangest things thieves steal.

Gold gains as equity push slows

LOS ANGELES (MarketWatch) — After investors got their fill on stocks, they turned back to gold on Friday, pushing prices up for the second consecutive day in an otherwise sluggish week.

AFP/Getty Images

Gold for February delivery (GCG4)  rose $2.70, or 0.2%, to $1,242.90 an ounce in electronic trade. March silver (SIH4)  rose 9 cents, or 0.5%, to $20.15 an ounce.

But any move to the upside will likely be short-lived until more of the shine comes off frothy equities, according to Kitco News contributor Jim Wyckoff.

"The bullish ways of the U.S. and other world stock markets are working against many other competing asset classes, including precious metals and other raw commodities," he said. "Until the air starts to come out of the in-my-opinion presently overly inflated stock-market balloon, raw commodities will continue to languish at best."

Click to Play Stock Bulls: You want the 49ers in the Super Bowl

Investors should hope the San Francisco 49ers make it to the Super Bowl. MarketWatch's Tom Bemis says this is not because he is based in the SF Bay, but because data show the market tends to do well when the Niners win the NFC. (Photo: Getty Images)

On the economic front, the Commerce Department is due to release new-homes construction data at 8:30 a.m. Eastern time. Industrial production, slated for 9:15 a.m, is forecast to slow to 0.3% growth from 1.1% in November.

There's also job openings data for November at 10 a.m. and a speech from Richmond Federal Reserve President Jeffrey Lacker at 12:30 p.m.

A day earlier, gold futures put an end to their mild losing streak, thanks to a decline in U.S. stocks and weakness in the dollar (DXY)  that helped prices score for their first gain in three sessions.

Elsewhere in metals trading Friday, platinum for April delivery (PLJ4)  improved by $6.10, or 0.4%, to $1,437.60 an ounce, while March palladium (PAH4)   tacked on a dime to $743.90 an ounce.

High-grade copper for March delivery   (HGH4)  lost a penny, or 0.1%, to $3.34 a pound.

Other must-read MarketWatch stories include:

Citi goes bullish on miners for first time in three years

Movie mogul says he and Streep will take down NRA — and reverse gun-stock rally

4 Stocks to Buy at Any Price

Popular Posts: 3 International Dividend Stocks You Must Own5 Overpriced Stocks to Ditch Now3 Income-Generating Covered Calls on Blue-Chip Stocks Recent Posts: 4 Stocks to Buy at Any Price Should I Buy SBUX Stock? 3 Pros, 3 Cons 3 Income-Generating Covered Calls on Blue-Chip Stocks View All Posts

Certain stocks are so intrinsic to our way of life that it’d probably be a fine strategy to just hold them until the sun explodes in a supernova.

The thing is, if you’re a value investor — and I am — their prices might be a little too much to bear. However, as long as you plan to hold them for at least 10 years, I don't think their present valuation matters — these are stocks to buy now.

It's hard to set any criteria for what makes these stocks above value considerations. They are a bit like art in that the criteria is hard to describe, but I think you’ll agree that you’ll know ‘em when you see ‘em.

Here’s a look at four stocks to buy now regardless of their valuations:

Google

Google (GOOG) was, to me, just a search engine. I never actually realized the company had taken over the world until it was too late.

Truthfully, there does not appear to be anything that Google doesn’t have its hands in. Email. Productivity apps. Tablets and smartphones. Maps. Translators. Payment services.

Good grief … GOOG even deployed a mysterious floating barge in San Francisco Bay that was revealed to be a giant art project.

I think owning Skynet … er, Google at an effective price of $875 (backing out its $163 per share in cash) — which is 20 times this year's estimates on a long-term growth rate of 16% — might even be considered a value purchase.

Amazon

Amazon (AMZN) is a weird beast in that its earnings are pretty volatile, which makes valuing the company difficult.

It has taken over the country's retail marketplace by effectively being the go-to discounter. Anything I buy, I buy on Amazon at this point, except for clothing. Nothing can replace it. It will only continue to reach into the world.

On a visit to a manufacturing plant in Texas last month, the owner told me that they are now purchasing parts and things like screws through Amazon, not their old suppliers. Zoinks!

Meanwhile, AMZN constantly is spending money on new initiatives like Amazon Web Services and bolstering its Amazon Prime digital content, which could make it a true media threat, too.

There's no way to assign a number you can trust on what the company’s growth rate might be, and its P/E is a joke thanks to its volatile earnings.

What you can trust is that Amazon has a very clear long-term plan, and the patience and brains to pull it off. I suggest just buying and holding.

Visa

Visa (V) is a stock to buy now because its one part of a duopoly.

Say all you want about Discover Financial (DFS) and American Express (AXP), but MasterCard (MA) and Visa own the vast majority of the credit card world and always will. Discover came along years ago and hasn't done much to penetrate the outer walls of its competitors. And we always want to own companies that dominate their space.

I choose Visa over MasterCard only because, at the moment, Visa trades closer to its long-term growth rate. Valuation might not matter, but when all else is equal, why not go with the cheaper one?

Berkshire Hathaway

Of course, this list is not complete without Berkshire Hathaway (BRK.B).

The fact that it is a tremendously diversified conglomerate is but one reason to hold the stock. The legendary management is certainly another. However, the biggest reason might simply be that the company has weathered every storm since Noah boarded his ark.

Berkshire is very dependent on its insurance holdings, yet no matter how large a tragedy may strike the U.S., Berkshire always comes out just fine.

As with Amazon, earnings from year to year aren't easily predicted because so much of Berkshire is dependent on insurance. Earnings depend on how many claims get paid from one year to the next.

And even after Uncle Warren goes to the big See's Candies in the sky, I have every confidence in his replacements.

Read More: 5 Hidden Dividend Gems

Lawrence Meyers does not own shares in any company mentioned.

September existing home sales fall 1.9%

Existing home sales slipped 1.9% in September due to higher mortgage rates and prices, the National Association of Realtors said Monday.

The association says sales of re-sold homes fell 1.9 percent last month to a seasonally adjusted annual rate of 5.29 million. That's down from a pace of 5.39 million in August, which was revised lower. The sales pace in August equaled July's pace. Both were the highest in four years and consistent with a healthy market.

The report comes amid signs of slowing in the housing recovery.

Nationwide, home values were up 1.2% in the third quarter from the second, Zillow data show. That's down from a 2.5% jump in the second quarter from the first.

Higher interest rates, fewer investor buyers and more homes for sale are all contributing to smaller price gains, economists say.

Last week, 30-year fixed rate loans averaged 4.28%, up from 3.37% a year ago, Freddie Mac said.

The government shutdown that ended last week and the related debate over raising the debt ceiling will also likely have an adverse effect on October home sales, says Leslie Appleton-Young, economist for the California Association of Realtors.

The association said last week that California home sales declined in September for the second straight month.

Contributing: The Associated Press

Mid-Morning Market Update: Markets Surge; Chevron Posts Lower Profit

Following the market opening Friday, the Dow traded up 0.53 percent to 15,628.01 while the NASDAQ gained 0.36 percent to 3,933.77. The S&P also rose, surging 0.36 percent to 1,762.94.

Top Headline
Chevron (NYSE: CVX) reported a 5.8 percent drop in its third-quarter earnings.

Chevron's quarterly profit fell to $4.95 billion, or $2.57 per share, from a year-ago profit of $5.25 billion, or $2.69 per share.

Its revenue rose 0.8 percent to $58.5 billion. However, analysts were expecting earnings of $2.71 per share on revenue of $58.41 billion.

Equities Trading UP
First Solar (NASDAQ: FSLR) shot up 9.67 percent to $55.17 after the company reported upbeat third-quarter results and lifted its full-year earnings forecast.

Shares of Office Depot (NYSE: ODP) got a boost, shooting up 3.94 percent to $5.81 after the US Federal Trade Commission closed probe of proposed Office Depot/OfficeMax merger.

Southwestern Energy Co (NYSE: SWN) was also up, gaining 4.41 percent to $38.86 after the company reported Q3 financial and operating results. Stifel Nicolaus upgraded the stock from Hold to Buy.

Equities Trading DOWN
Shares of Ellie Mae (NYSE: ELLI) were down 18.58 percent to $23.53 after the company reported a weaker-than-expected Q3 profit. Ellie Mae also signed a definitive agreement to buy MortgageCEO.

American International Group (NYSE: AIG) shares tumbled 6.07 percent to $48.51 after the company reported a 17 percent rise in its third-quarter net income.

Bruker (NASDAQ: BRKR) was down, falling 8.85 percent to $18.65 on Q3 results.

Commodities
In commodity news, oil traded down 0.93 percent to $95.48, while gold traded down 0.62 percent to $1,315.50.

Silver traded up 0.24 percent Friday to $21.92, while copper fell 0.03 percent to $3.30.

Eurozone
European shares were mostly lower today. The Spanish Ibex Index fell 0.16 percent, while Italy's FTSE MIB Index declined 0.27 percent. Meanwhile, the German DAX fell 0.14 percent and the French CAC 40 dropped 0.09 percent while U.K. shares rose 0.11 percent.

Economics
The final reading of Markit manufacturing PMI surged to 51.8 in October, versus a flash reading of 51.1.

The ISM manufacturing index rose to 56.40 in October, from a prior reading of 56.20. However, economists were expecting a reading of 55.00.

Posted-In: Earnings News Guidance Eurozone Futures Commodities Forex Global Econ #s Economics Hot Intraday Update Markets Movers Tech

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Around the Web, We're Loving... Learn to Use Trading Platforms Like Hedge Fund Traders do Rumsfeld: Denial of Benefits to Fallen Soldiers' Families 'Inexcusable' Come See How the Pro's Trade in this Exclusive Webinar Facebook, Baidu Lead Big Caps Beating Shutdown What Should You Know About AMZN? Most Popular Apple's iPhone 6 Could Be Solar-Powered New Advice for Apple's Tim Cook: Buy Tesla There Will Be Plenty of iPad Airs For Sale This Friday (AAPL) Facebook Jumps 12% After Q3 Earnings Market Wrap for October 30: Fed Worries Push Stocks Lower, Facebook Earnings Raise Concerns Coach, Dell And Others Insiders Have Been Buying (COH, DELL, FCX, SYMC) Related Articles (BRKR + AIG) Mid-Morning Market Update: Markets Surge; Chevron Posts Lower Profit Benzinga's Top #PreMarket Losers #PreMarket Primer: Friday, November 1: Fed Taper Back In Focus Earnings Scheduled For November 1, 2013 Stocks To Watch For November 1, 2013 AIG Names Monika M. Machon AIG Treasurer; Brian T. Schreiber, Geoffrey N. Cornell Named Deputy CIOs View the discussion thread. Partner Network #marketfy-ae-block { display: none; border: 2px solid #0a3f75; overflow: hidden; width: 300px; height: 125px; text-align: center; background-color: #45719E; position: relative; z-index: 1; } #marketfy-ae-block a { display: block; width: 300px; height: 125px; position: relative; z-index: 2; color: #ffffff; text-decoration: none; } #marketfy-ae-block-countdown-text { color: #f9fc99; padding: 0px 0 0 0; font-size: 19px; font-weight: bold; line-height: 19px; } #marketfy-ae-block-countdown-text-start { font-size: 12px; } #marketfy-ae-block-countdown { padding: 5px 0 5px 0; font-size: 26px; } #marketfy-ae-block-signup { padding: 5px 47px; } #marketfy-ae-block-signup:hover { background-color: #457a1a; } #marketfy-ae-block #marketfy-ae-block-logo { display: block; padding: 3px 0 0 0; margin: 0; } #marketfy-ae-block-logo { text-indent: -9999px; } #marketfy-ae-block-free { display: block; position: absolute; top: 7px; right: -23px; width: 80px; height: 16px; line-height: 16px; text-align: center; opacity: 1; -webkit-transform: rotate(45deg); -moz-transform: rotate(45deg); -ms-transform: rotate(45deg); transform: rotate(45deg); font-size: 13px; font-weight: normal; color: #333333; background-color: yellow; z-index: 500; text-shadow: 1px 1px #999999; } #marketfy-ae-block-arrow { position: relative; width: 60px; height: 60px; z-index: 10; margin: -80px 0 13px -21px; } #marketfy-ae-block-arrow img { height: 60px; width: auto; } Marketfy's International
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Larry Summers: Social Media's Whipping Boy

NEW YORK (TheStreet) -- Over the weekend, Larry Summers withdrew his candidacy for the Chairman of the Federal Reserve, citing that it would not "serve the interests of the Federal Reserve" to be named Ben Bernanke's replacement. While not at the level of the Arab Spring, this may be the first instance of a social media revolt in the U.S.

The amount of anti-Summers vitriol seen on Facebook (FB), Twitter, and other forms of social media prior to the announcement was astounding, especially since this is a position that is not voted on by the American public. It's a position hand-picked by President Obama.

Just what everyone wants in a Fed Chair....."vindictive, viscous score settler". Heckva job Obama.— Lizzy (@lizzie363) September 13, 2013 lol RT @mattyglesias: Summers' level of support outside the West Wing continues to be underwhelming: pic.twitter.com/FR8AUbWs7Z— Joseph Weisenthal (@TheStalwart) September 13, 2013 Summers would have been the first Fed Chair to have an active Twitter account, with a tweet as recently as July 8, having penned an article discussing about tax reform. Comments about him on Twitter Monday morning shows how great the dislike is toward his views on financial markets and regulation, among many other aspects of his candidacy. Here's a few tweets that turn up in a simple search for Larry Summers, showing the incredible reaction toward his withdrawal: Larry Summers withdraws name from Fed consideration, will instead pursue other opportunities to destroy the global financial system— The Daily Edge (@TheDailyEdge) September 16, 2013 Dow futures jump more than 1% as Larry Summers drops out of Fed chair race. http://t.co/A6qqxfUs3m— CNNMoney.com (@CNNMoney) September 16, 2013 Can't be a big ego booster when US equity futures rally 1% because you announce won't take a job. $SPY— Bespoke (@bespokeinvest) September 16, 2013 The economic recovery in this country is still on weak footing, and by nominating Summers, whom many see as more hawkish than other replacements, Obama likely would've done more harm than good. Summers knew that he would have a tough time getting confirmed by the Senate Banking Committee. Several prominent Democrats, including Sens. Sherrod Brown (D-OH), Jeff Merkley (D-OR) and Elizabeth Warren (D-MA), have voiced their opposition publicly toward Summers. While it's incredible that Obama's own party would voice their opposition toward Summers, the reaction on social media is even more incredible, and in circles not generally thought of as finance-centric. The topic was brought up in Silicon Valley, not generally seen as the hotbed of financial discussion. Perhaps this was because Janet Yellen, the likely nominee now that is Summers has withdrawn his name, was the president of the San Francisco Federal Reserve prior to her becoming Vice Chairwoman of the Board of Governors of the Federal Reserve System. I'm not entirely sure the reason, though it is interesting that in an area with a large technology base, that monetary policy was the subject du jour. As the world becomes more interconnected, with social media playing a huge role, reactions such as this may wind up becoming the norm. Especially for a position that is likely to have increasingly more importance, as developed economies, including the U.S. struggle for growth. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia

Back to the Basics: Insider Trading

Easily put: Insider trading is when the big shots and high shareholders of a company either buy or sell stocks in their own company.

Is It Legal?

Insider trading can be influential and controversial because it walks on a very thin line between legal and illegal. That line gets even hazier when you take into account all of the information the insider could have and that the public does not have.

Insider buying and selling is deemed illegal when an insider uses non-public information to base their decision to buy or sell on. This material non-public information can be obtained from the insider's day-to-day workings at the office. This is what happened to homemaking mogul Martha Stewart in 2002. Stewart was told that she should sell all 3,928 shares she held in ImClone Systems because the company was about to implode. She did. Then she was fined $30,000 and she spent a daunting five months in federal prison. What made Martha's move illegal was that she was privileged information that was not made readily available to the general public.

In order to prevent misinformation to the public, the U.S. requires that any corporate officer, director or significant shareholder (10% or more of the firm's equity securities) report any trade to the Securities and Exchange Commission (SEC) within two business days. It should also be noted that the Canadian Stock Market has different rules; insiders in Canada are not required to report their insider trades to the SEC for an entire week.

Despite the controversy, insider trading is (for the most part) a legal action that corporate officers partake in. In fact, some investors and analysts regard insider trading very highly because they believe that those who have the most stakes in the company have the best insight into the company. Insider buying or selling can foreshadow factors such as the retirement of the CEO who is selling their shares or that of a new corporate leader buying into the shares which demonstrates a commitment and h! ope for a positive future for and with the company.

Why Do Insiders Matter?

No one says it better than Peter Lynch when he says, "Insiders might sell their shares for any number of reasons, but they buy them for only one: They think the price will rise."

Insiders have proven to be smart investors of their own companies. In a research study on insider trading activities, GuruFocus found that insiders are primarily value investors and contrarians. This meaning that they tend to sell more when the market buys and buy more when the market sells.

Insiders know their companies. Without having any material evidence, a CEO might simply be optimistic about the direction in which their company is moving and decide to invest more into it. On the other hand, there might be a switch in policy or some other factor that a corporate officer might not like it and decide to drop some of their stock.

One thing you should watch out for when looking at insider trades is insider sells. Just because an insider sells a large amount of their shares, it doesn't mean that the business is crashing. It could mean that the exec is diversifying their holdings, low on cash or even taking a vacation.

Does It Work?

University of Michigan professor, Nejat Seyhun, conducted a massive research project on insider trading. He found that when executives bought shares in their own companies, the stock tended to outperform the total market by an average of 8.9% over the next 12 months.

Seyhun also found that when the executives sold their shares, the stock underperformed by approximately 5.4%. For more information on Seyhun's research, check out his book, "Investment Intelligence from Insider Trading."

So what we've learned is that following insider trading can be a beneficial tool to help you to make informed decisions when picking which stocks to invest in, but it cannot be the only thing you look at. When a company's executives are confident enough to invest their ! own money! into their stock then you should be too. But when those executives drop stocks there is no need to freak out immediately because there are infinite reasons why they could be cutting back on some of their shares. Do your research, look at the trends and look at the insiders, and then you can make an informed decision!

For more information on who is making insider transactions check out the GuruFocus Insider Trade Page.

Related links:Insider trading activitiesGuruFocus Insider Trade Page

First Take: Ford misses chance to squelch Micro…

Ford Motor's board of directors meeting this week triggered widespread guessing whether the directors would say or do anything about Ford CEO Alan Mulally's frequent mentions as the next CEO for Microsoft.

The board meeting ended without any announcement about Mulally.

STORY: Ford board mum on Mulally, Microsoft

The Microsoft talk is coming from reports that don't name sources, but it's being taken seriously enough to cause hand-wringing inside Ford and among outsiders.

On Oct. 1, at the 16th USA TODAY CEO Forum in Athens, Ga., Mulally said, "With respect to Microsoft, I love serving Ford, so I have nothing new to announce besides serving Ford."

That wasn't quite am absolute rejection of any Microsoft position, though. And in the same session, the Ford chief, perhaps unintentionally, tossed a little fuel on the rumor fire, recalling that, as a Boeing executive being courted by the automaker, "When (then-Ford CEO and current executive chairman) Bill Ford called, I knew I was having trouble, because I didn't say 'No' right away."

Too, the company has suggested that Mulally could leave early without hard feelings if he has a can't -resist offer. But he'd also leave a serious pile of cash behind for leaving before the end of next year.

"You can bet that there is much teeth-gnashing within that company and on the company's board if there is a persistent rumor that the chief exec is about to depart," says auto industry veteran Jack Nerad, executive editorial director and market analyst at Kelley Blue Book's kbb.com.

"I'm sure the board hates it that the rumor is out there. But he doesn't need to go public" with any further comment, says Rob Lachenauer, CEO and partner at executive consultants Banyan Family Business Advisors. If Mulally assures the board he's staying at Ford through 2014, as has been the plan for some time, that might be the end of it, Lachenauer says.

The usually troubling issue of succession isn't a big deal in this case. Last year the bo! ard approved a new COO position, No. 2 to Mulally, and appointed Mark Fields. He's been in charge of Ford's business in North and South America. Despite Bill Ford's caution at the time against reading too much into the move, outsiders have been assuming that Mulally's job is basically Fields' to lose.

Since the Microsoft rumors gained currency the past few weeks, Ford shares have edged down, to close Thursday 10/10 at $16.93, from $17.39 on Sept. 20. The 2.6% drop suggests "uncertainty from the investors' standpoint," Lachenauer says.

"On the inside, people want to know who their boss is. On the outside, current and potential investors want to know who is leading the company," Nerad says.

Moving to Microsoft headquarters in Washington would be returning to the area where Mulally spent most of his business life, working for airplane maker Boeing from 1969 until joining Ford in 2006.

And it would be another CEO job. One reason he left Boeing for Ford is because he wasn't in line for the Boeing CEO job.

Though a retirement–worthy 68, Mulally "is still energetic; he's not slipping," notes David Cole, lifetime observer of the auto business and chairman emeritus of the Center for Automotive Research, who was inducted in to the Automotive Hall of Fame this year.

On the other hand, that age issue sticks in the craw when outsiders talk about a possible Mulally move to Microsoft.

"If he were 60, that'd be something else entirely," Cole says.

And although Mulally has proved that leadership is portable, Microsoft would be a culture shock. At both Boeing and Ford, Cole notes, Mulally was in "a complex manufacturing business, but the software world is very different."

"It would surprise the daylights out of me" if Mulally were to make the move, Cole says.