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.
The Short Answer
We clear up terms such as margin of safety, risk-free rate of return, and sensitive stocks.
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
                                  Jul 22
                                  Market Consensus
                                  0.2%
                                  Actual
                                  Market Consensus
                                  NA
                                  Actual
                                  Market Consensus
                                  5.00M
                                  Actual
                                  Market Consensus
                                  NA
                                  Actual
                                  Market Consensus
                                  NA
                                  Actual
                                  Market Indexes
                                  DJIA
                                  17,052
                                  0.0
                                  0.0%
                                  S&P 500
                                  1,974
                                  0.0
                                  0.0%
                                  NASDAQ
                                  4,425
                                  0.0
                                  0.0%
                                  Morningstar U.S. Market
                                  4,975
                                  0.0
                                  0.0%
                                  Morningstar Small Cap
                                  7,476
                                  0.0
                                  0.0%
                                  Commodity Futures
                                  Gold
                                  $1,313.40
                                  0.32%
                                  Jul 14
                                  Light Crude
                                  $103.15
                                  0.28%
                                  Sep 14
                                  Natural Gas
                                  $3.84
                                  -0.23%
                                  Aug 14
                                  Maturity
                                  %Yield
                                  6 Month
                                  0.06
                                  2 Year
                                  0.51
                                  5 Year
                                  1.70
                                  10 Year
                                  2.49
                                  30 Year
                                  3.26
                                  1 Yr Ago
                                  Last Close
                                  Data as of last close