Tuesday, July 22, 2014
Special Report
In an excerpt from their new book, Morningstar's Heather Brilliant and Elizabeth Collins explore how to identify a moat and how intangible assets can help a firm carve out a sustainable competitive advantage.
Earnings News
Chipotle’s phenomenal 17.3% comp increase during a tepid quarter for restaurant operators is a testament to the firm’s business model, but valuation levels remain a concern, says Morningstar’s R.J. Hottovy.
The Short Answer
We clear up terms such as margin of safety, risk-free rate of return, and sensitive stocks.
Morningstar Minute: Medalist of the Week
This fund has to overcome a major hurdle with its expenses, but it has far exceeded expectations in a short time frame.
    Heard on the Boards
    Did you retire early--say, prior to age 65? If so, we'd like to hear how you did it--especially if you managed to retire early without taking an Internet company public or inheriting a lot of money from your parents.
      Morningstar Minute
      Chart of the Week
      Consumer savings rates are great leading indicators for future consumption, and the current savings rate has increased appreciably in the last few months.
        Earnings Insights
        Stock Analyst Notes
        Although some of Google's nontraditional products could have smaller margins, they still have strong potential for growth, and the stock remains a suitable core holding for many investors.
        Morningstar Specialists
        Christine Benz: Real-life Finance
        Longevity annuities might be a newly available option for your IRA, but retirees should weigh the pros and cons before buying these vehicles.
          Rekenthaler Report
          These funds may have been second-rate but seem no longer to be.
            Bob Johnson: Reading Indicators
            Increasing employment and income data suggest that retail sales could accelerate even more from here, says Morningstar's Bob Johnson.
              Russ Kinnel: Fund Investing
              Keep an eye on these Medalist funds that have hefty weightings in energy and materials, says Morningstar's Russ Kinnel.
                Sam Lee: Rational Investing
                High-yield bonds are expensive, but if you absolutely demand high income, here's a closed-end fund to consider.
                  Josh Peters: Dividend Investing
                  Companies are buying back shares at near-record levels, but Morningstar's Josh Peters says firms can serve shareholders much better with dividends rather than stock repurchases.
                    Matt Coffina: Wide-Moat Investing
                    With the uptick in merger and acquisition activity, whether it be for tax-inversion or strategic reasons, investors should focus on the target company, which can benefit from the deal immediately, says Morningstar's Matt Coffina.
                      Stocks
                      Stock Strategist
                      Attractive growth opportunities can't cover up nosebleed valuations.
                        Mutual Funds
                        Fund Spy: Morningstar Medalist Edition
                        A look at some Morningstar Medalists with remarkable longevity and results.
                          Perspectives
                          Perspectives: GMO
                          GMO's Jeremy Grantham looks back at investing mistakes made over his 47-year career, expresses his concerns about a highflying market as well as a dearth of food and fertilizer, and revisits the Keystone.
                            Real Life Finance
                            Heard on the Boards
                            It’s an area fraught with land mines, but readers share tips for improving the communication flow among family members.
                              ETFs
                              ETF Spotlight
                              At first blush, this fund's strategy appears complex, but it is essentially a combination of traditional factors and equal weighting.
                                Bonds
                                Video Report
                                The risk of bank-loan defaults is muted at the same time investor demand for such products remains elevated, but this volatile asset class is not for near-term cash needs, says Fidelity's Eric Mollenhauer.
                                  Closed-End Funds
                                  CEF Weekly
                                  Regional equities struggled but MLPs surged ahead in the first half of 2014.
                                    Market Barometer
                                    Lg
                                    Md
                                    Sm
                                    Value—Growth
                                    Day Return
                                    +1.25%
                                    0
                                    -1.25%
                                    1Wk Return
                                    +1.25%
                                    0
                                    -1.25%
                                    1Mo Return
                                    +4%
                                    0
                                    -4%
                                    3Mo Return
                                    +8%
                                    0
                                    -8%
                                    1Yr Return
                                    +20%
                                    0
                                    -20%
                                    3Yr Return
                                    +20%
                                    0
                                    -20%
                                    1Wk1Mo3Mo1Yr3Yr
                                    Jul 22
                                    Market Consensus
                                    0.3%
                                    Actual
                                    0.3%
                                    Jul 22
                                    Market Consensus
                                    0.2%
                                    Actual
                                    0.1%
                                    Market Consensus
                                    NA
                                    Actual
                                    0.4%
                                    Market Consensus
                                    5.00M
                                    Actual
                                    5.04M
                                    Market Consensus
                                    NA
                                    Actual
                                    Market Consensus
                                    NA
                                    Actual
                                    Market Indexes
                                    DJIA
                                    17,114
                                    61.8
                                    0.4%
                                    S&P 500
                                    1,984
                                    9.9
                                    0.5%
                                    NASDAQ
                                    4,456
                                    31.3
                                    0.7%
                                    Morningstar U.S. Market
                                    5,002
                                    26.5
                                    0.5%
                                    Morningstar Small Cap
                                    7,531
                                    55.9
                                    0.7%
                                    Commodity Futures
                                    Gold
                                    $1,313.40
                                    0.32%
                                    Jul 14
                                    Light Crude
                                    $101.97
                                    -0.87%
                                    Sep 14
                                    Natural Gas
                                    $3.77
                                    -2.18%
                                    Aug 14
                                    Maturity
                                    %Yield
                                    6 Month
                                    0.07
                                    2 Year
                                    0.49
                                    5 Year
                                    1.68
                                    10 Year
                                    2.48
                                    30 Year
                                    3.25
                                    1 Yr Ago
                                    Last Close
                                    Data as of last close