3 Reasons Family Offices Should Invest in Gold

Probably the most important duty of a family office is to position the portfolio to grow over the market average for the long term. That means anticipating future trends in asset classes.

With gold declining in value, there are three main reasons why family offices should invest in The Yellow Metal for long term gains: protect against future inflation, profit from economic growth in China and India, and to diversify the holdings of a portfolio, with the possibility of a healthy dividend income.

Precious metals like gold and silver have always been traditional safe haven assets for when investors lost confidence in fiat currencies due to inflation. After the first two rounds of quantitative easing, the acquiring of trillions in bonds by expanding its balance sheet, by the Federal Reserve, the exchange traded funds for gold, SPDR Gold Shares (NYSE: GLD), and silver, iShares Silver Trust (NYSE: SLV), both soared in value. But that did not happen after Quantitative Easing III was announced by Federal Reserve Chairman Ben Bernanke in September 2012.

5 Best Value Stocks To Watch Right Now

But gold should rise in the future due to quantitative easing by global central bankers, which should bring about rising prices.

Related: 3 Reasons Family Offices Should Invest in the Staffing Sector

That should result in inflation, which decreases the value of paper money and increases the value of gold. As former Secretary of State and Secretary of Treasury George Shultz stated in a Wall Street Journal interview, "The Fed doesn't have an unlimited capacity because when it buys the debt what it's doing is monetizing the debt. Sooner or later that has to get out into the economy. Can't be held forever."

When that happens, inflation will set in, increasing the value of gold and silver.

The two biggest consumers of gold are also starting to buy more, too. According to the World Gold Council, China is purchasing gold at a rate that will reach a record 1,000 tons this year, a jump of 29 percent. The China Gold Association reports that gold consumption soared by 54 percent to 706.36 tons in just the first six months of 2013.

It is not just China, however: Over the last decade, there has been a 35 percent increase in gold jewelry, bars, and coins in China, India, Indonesia and Vietnam. In a recent interview, Richard Pouldon, Executive Chairman of Wishbone Gold (OTC: WISHY), pointed out that the buying was shifting towards the metal itself, not securities.

Investing in gold now will put family offices in front of the burgeoning demand from the world's two most populous nations.

There is also a need for diversification in an investment portfolio that gold and silver holdings provide for a family office. It is a classic hedge against economic turmoil. Companies in the sector range from Goldcorp (NYSE: GG), the world's biggest, to Wishbone Gold, a small cap with promising holdings in Australia. If dividend income is desired by the family office, there is Yamana Gold (NYSE: AUY), a favorite of financial columnist Jim Jubak, that has a 2.80 percent yield. Goldcorp has a dividend of around 2.50 percent, with Newmont Mining's (NYSE: NEM) even higher at nearly three percent.

Investing in gold and silver will prepare and diversify the holdings of a family office to profit from any market conditions in the future.

Posted-In: Long Ideas News Emerging Markets Dividends Dividends Commodities Economics Federal Reserve Markets Personal Finance Trading Ideas ETFs Best of Benzinga

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

  Around the Web, We're Loving... Come Learn 6 Proven Trading Strategies at Our Holliday Trading Summit 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 General Electric to Spin-Off Retail Finance Unit in an IPO 3 Reasons Every Family Office Should Own Oil and Natural Gas Stocks 10 Stocks Below Their 50-Day Moving Average Apple Breaks Out of Six Day Trading Range Benzinga's Top #PreMarket Gainers 6 Ways to Tell if the Market is About to Crash Related Articles (AUY + GG) Dividend-Paying Gold Stocks are Very Alluring After Janet Yellen's Remarks 3 Reasons Family Offices Should Invest in Gold Gold Short Sellers Seek Direction (AU, NEM, NGD) Does Barrick Gold's Axing its CEO and Founder Signal a Market Bottom? Top 4 Mid-Cap Stocks In The Gold Industry With The Highest Dividend Yield 3 Reasons to be Bullish about Gold 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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Pain-free methods to calculate retirement costs

In the scheme of things, it's nothing more than a math problem. But trying to figure out how much you need to fund retirement can be a complicated affair, especially when you factor in all thing things that could go wrong in your golden years.

But there are at least three methods that you can use to get a sense of whether you're on track or not, says Anna Rappaport, president of a Chicago-based consulting firm bearing her name.

The first, and perhaps the best method, is what's called a cash-flow analysis, a practice commonly used by financial planners.

"A detailed, personalized cash-flow forecast is the best way for individuals to prepare and manage their retirement needs," says Rappaport, co-author of a Society of Actuaries' (SOA) study, "Measures of Benefit Adequacy: Which, Why, for Whom and How Much."

CALCULATORS: Need help planning for retirement? Try these calculators

With the cash-flow analysis method, you

calculate what your annual expenses will be in your golden years and multiply that by the number of years you need to fund. If you have enough income — from all your sources of capital — to fund those expenses, you're in good shape.

Yes, calculating what your annual expenses will be in retirement will require some time, energy and soul searching. You'll need to estimate not only the cost of essential expenses such as housing, health care, food and transportation, but the cost of discretionary expenses such as travel, gifts and the like. Plus, figuring out how many years of retirement you need to fund might require the help of an actuary. The worst case is not pretty: If you underestimate how long you'll live, for instance, your standard of living in retirement won't be the one you planned.

Don't despair if you're not up to the task of doing a detailed cash-flow analysis. Experts have devised some general rules that take some of the pain out of you having to crunch numbers. But a word to the wise: i These rules, which can provide a starting poi! nt, are not without their shortcomings.

INVESTING: Retirement savings for the median worker

Many experts refer to the Aon/Georgia State Replacement Rate research, which suggests that you try to replace 85% of your pre-retirement income, a third of which will come from Social Security.

That replacement rate ratio reflects how your expenses change as you move from work to retirement, according to the 2012 version of Aon's study. For instance, you won't be paying as much for work-related expenses or as much in federal and state taxes. But the replacement ratio factors in the possibility that you might travel more or might need to pay more for health care costs.

For her part, Rappaport says the income replacement ratio is typically used by employers when designing their plans and comparing their plans with those of other employers. It's also built into many retirement-planning software programs.

But this general rule has drawbacks. For one, your income replacement rate will — in general — be different depending on your pre-retirement income, according to a recent research paper from Dimensional Fund Advisors, an Austin-based mutual fund firm. It could range anywhere from 58% if you have household income of $86,882 or more, to 82% if you have household income of less than $25,870.

What's more, Rappaport said the income-replacement ratio is not a good measure for individuals to understand how they will ultimately fare in retirement. It's based on the law of large numbers, and you need to base your income-replacement ratio on the law of one number — yours.

According to Rappaport's paper, the best strategies to preserve assets without factoring in shocks may no longer be the best strategies, once shock events — such as loss of a job, divorce, illness and death — are considered. "Making retirement decisions based on averages increases the risk of running out of money," Rappaport says.

Another way to figure out how much income you might ne! ed in ret! irement is to use what's called the minimum needs measure. This method, generally used by policymakers, uses the Elder Economic Security Index (EESI) to outline national averages for minimum needs for various household types and specific geographic areas.

This measure can help individuals understand whether what they have will support a minimum standard of living, Rappaport says. If expenses are much higher than the EESI standard, there should be opportunities for expense reduction. If resources don't meet the EESI standard, an individual can't afford to retire without significant financial deprivation.

Ultimately, however, Rappaport wrote that there is no "one-size-fits-all" measure of benefit adequacy, and there are many "moving parts," depending on the purpose and the stakeholder using it. Individuals need to be aware that attempts to oversimplify the retirement-planning process can be very dangerous if used for personal decision-making.

Robert Powell is editor of Retirement Weekly. E-mail him at rpowell@allthingsretirement.com

Top Clean Energy Stocks To Invest In 2014

The United States Agency for International Development (USAID) has selected Engility Holdings (NYSE: EGL  ) to be part of a $400 million contract to develop "clean energy" solutions. Most of the work will be done for foreign countries.

On Wednesday, USAID named Engility a prime contractor under a contract to support renewable energy development in Afghanistan, Iraq, Pakistan, Sudan, and Yemen. The effect of this kind of indefinite delivery, indefinite quantity (IDIQ) contract is to authorize Engility to bid on -- but not guarantee that it will win -- individual task orders that will be issued under the contract over the next five years.

Task orders that Engility can now compete for include providing legal, regulatory, and corporate governance advice on energy sector reform, providing training in relation to energy services, and otherwise "fostering private sector participation and investment" in the clean energy sector. Demonstration projects involving clean energy may also be commissioned, aimed at helping to transition the targeted countries to a "low carbon development trajectory."

Top Clean Energy Stocks To Invest In 2014: Cascadia Reso (CCR.V)

Cascadia Resources Inc. focuses on the exploration and development of oil and gas properties in Alberta, Canada. The company was formerly known as Cascadia International Resources Inc. and changed its name to Cascadia Resources Inc. in February 2009. Cascadia Resources Inc. was incorporated in 1983 and is headquartered in Calgary, Canada.

Top Clean Energy Stocks To Invest In 2014: Helios Strategic Income Fd Inc (HSA)

Helios Strategic Income Fund, Inc. is a closed ended fixed income mutual fund launched and managed by Brookfield Investment Management Inc. It operates as a diversified and closed-end management investment company. The fund primarily invests in debt securities and equity securities. Its portfolio of investments includes investments in corporate bonds, home equity loans, commercial loans, franchise loans, equipment leases, manufactured housing, common stock, collateralized debt obligations, certificate-backed obligations, collateralized mortgage obligations, and government agency securities. It was formerly known as RMK Strategic Income Fund, Inc. Helios Strategic Income Fund, Inc. was founded in 2004 and is based in Memphis, Tennessee.

Top Canadian Stocks To Invest In 2014: Kenmare Res(KMR.L)

Kenmare Resources plc, together with its subsidiaries, operates as a mining and exploration company. The company principally engages in the operation of the Moma Titanium Minerals mine, which is located on the north east coast of Mozambique. It sells a range of ilmenite, rutile, and zircon to the producers of titanium dioxide pigment, zircon millers, and specialized manufacturers supplying niche markets. The company was founded in 1972 and is based in Dublin, Ireland.

Top Clean Energy Stocks To Invest In 2014: Synergy Metals Ltd (SML.AX)

Synergy Metals Limited engages in the exploration and development of mineral properties in Australia. It primarily explores for gold and silver. The company holds interests in various tenements covering approximately of 1,920 square kilometers located in north-eastern Victoria, Australia. Synergy Metals Limited is based in Melbourne, Australia.

Top Clean Energy Stocks To Invest In 2014: Dios Exploration Inc (DOS.V)

Dios Exploration Inc., a mineral research company, operates as a mining exploration and evaluation company in Canada. It focuses on exploring gold, uranium, diamonds, and a carbonatite with rare earth and niobium metals. The company holds interests in various properties comprising 5,300 mining claims covering approximately 2,750 square kilometers in the areas of central Quebec and the Otish Mountains. Dios Exploration Inc. is based in Montreal, Canada.

Top Clean Energy Stocks To Invest In 2014: Naturally Advanced Technologies (NAT.V)

Crailar Technologies Inc. engages in the development and execution of CRAiLAR and CRAiLEX bast fiber processing technologies. The company focuses on providing textile, plastics, composite, and pulping solutions through the process of converting industrial hemp, flax, and other bast fiber crops through its patented technologies. It is involved in developing CRAiLEX advanced material technologies for processing of cellulose-based fibers in Pulp and Paper, dissolving pulp, and performance apparel industries; and CRAiLAR fiber technologies for applications in the textile industry. The company was formerly known as rally Advanced Technologies Inc. and changed its name to Crailar Technologies Inc. in October 2012. Crailar Technologies Inc. was founded in 1998 and is headquartered in Victoria, Canada.

FINRA to Sharpen High Risk Broker, BrokerCheck Programs

The Financial Industry Regulatory Authority plans to expand its High Risk Broker initiative next year, which has so far barred 16 brokers in 2013, and is planning further enhancements to BrokerCheck, FINRA CEO Richard Ketchum told Sen. Edward Markey, D-Mass., in a recent letter.

Under its High Risk Broker initiative, launched in February, Ketchum told Markey that 42 brokers have been designated as high risk by FINRA’s Office of Fraud Detection and Market Intelligence, “resulting in fast-tracked regulatory actions.” Ketchum told Markey in a Nov. 13 letter that FINRA plans to “create a dedicated enforcement team” in 2014 to go after high-risk brokers.

Markey posted Ketchum’s letter on his web site Friday.

Ketchum was responding to concerns raised by Markey in a letter, which stated that “the fact that dozens of brokers have been designated high-risk and 16 brokers have been barred from the securities industry in mere months underscores the urgent need for FINRA and the SEC to engage in much more vigorous enforcement of rogue brokers.”

Said Markey: “FINRA’s commitment to expand the High Risk Broker initiative and establish a dedicated enforcement team are important initial steps.”

From January 2011 through Sept. 30, 2013, FINRA has barred 1,342 individual brokers for a variety of violations of the federal securities laws or FINRA rules, Ketchum told Markey.

As to further enhancements to BrokerCheck, Markey told Ketchum that while he “commends” FINRA for making BrokerCheck more user-friendly, he remains “concerned that the information BrokerCheck provides to investors is incomplete.”

Ketchum noted the most recent change to BrokerCheck on Oct. 26, which presents search results in a graphical timeline, illustrating a more user-friendly view of an industry professional’s employment status and history, industry registrations, and any reportable events such as customer disputes or disciplinary actions that may have occurred during his or her career.

FINRA also recently enhanced BrokerCheck’s Internet presence to allow investors to search investment professionals and investment firms through Google and Bing to obtain results with direct links to records in BrokerCheck.

“This week,” Ketchum continued, FINRA is deploying “a stand-alone and more visible BrokerCheck search box, first on the FINRA home page and then on other investor-related web sites, that will enable investors to enter a broker or firm name and go directly to the search results page in BrokerCheck.”

Ketchum also told Markey that FINRA is reviewing “existing information about expungement” on BrokerCheck, “as well as the placement of that information, to better inform investors and others of the possibility that matters have been expunged from a BrokerCheck record.”

10 Best Safest Stocks To Own Right Now

LONDON --�Remember the good old days when investors held banking shares for their safe dividend income? The financial crash shattered that. More recently, banking stocks have been a recovery play for those investors brave enough to bet that the eurozone crisis wouldn't blow up in their faces. It's been a remarkably successful bet.

But if you're hankering for a safer play on the banking sector and yearn for those reliable dividends, it's worth having a look at�HSBC� (LSE: HSBA  ) (NYSE: HBC  ) . After recent broker upgrades, its shares are on a prospective yield of 5%, with a 4.2% historic yield in the bag. That's well ahead of�Standard Chartered�and�Barclays,�the other two dividend-paying banks. And HSBC surely has the safest dividend in the sector.

Safety in numbers
It's not just that HSBC is the second largest company on the FTSE 100, with a market cap roughly equal to the other four banks put together. HSBC's global footprint underpins its safety. With over 6,000 offices in 80 countries, its worldwide reach provides a strong competitive advantage to capture international trade flows and service multinational corporations.

10 Best Safest Stocks To Own Right Now: Goldman Sachs Group Inc.(The)

The Goldman Sachs Group, Inc., together with its subsidiaries, provides investment banking, securities, and investment management services to corporations, financial institutions, governments, and high-net-worth individuals worldwide. Its Investment Banking segment offers financial advisory, including advisory assignments with respect to mergers and acquisitions, divestitures, corporate defense, risk management, restructurings, and spin-offs; and underwriting securities, loans and other financial instruments, and derivative transactions. The company?s Institutional Client Services segment provides client execution activities, such as fixed income, currency, and commodities client execution related to making markets in interest rate products, credit products, mortgages, currencies, and commodities; and equities related to making markets in equity products, as well as commissions and fees from executing and clearing institutional client transactions on stock, options, and fu tures exchanges. This segment also engages in the securities services business providing financing, securities lending, and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds, and foundations. Its Investing and Lending segment invests in debt securities, loans, public and private equity securities, real estate, consolidated investment entities, and power generation facilities. This segment also involves in the origination of loans to provide financing to clients. The company?s Investment Management segment provides investment management services and investment products to institutional and individual clients. This segment also offers wealth advisory services, including portfolio management and financial counseling, and brokerage and other transaction services to high-net-worth individuals and families. In addition, it provides global investment research services. The company was founded in 1869 and is headquartered in New York, New York.

10 Best Safest Stocks To Own Right Now: Fluor Corporation(FLR)

Fluor Corporation, through its subsidiaries, provides engineering, procurement, construction, maintenance, and project management services worldwide. Its Oil & Gas segment offers design, engineering, procurement, construction, and project management services to upstream oil and gas production, downstream refining, chemicals, and petrochemicals industries. This segment also provides consulting services comprising feasibility studies, process assessment, and project finance structuring and studies. The company?s Industrial & Infrastructure segment offers design, engineering, procurement, and construction services to the transportation, wind power, mining and metals, life sciences, manufacturing, commercial and institutional, telecommunications, microelectronics, and healthcare sectors. Its Government segment provides engineering, construction, logistics support, contingency response, management, and operations services to the United States government focusing on the Departme nt of Energy, the Department of Homeland Security, and the Department of Defense. The company?s Global Services segment offers operations and maintenance, small capital project engineering and execution, site equipment and tool services, industrial fleet services, plant turnaround services, temporary staffing services, and supply chain solutions. Its Power segment provides engineering, procurement, construction, program management, start-up and commissioning, and operations and maintenance services to the gas fueled, solid fueled, plant betterment, renewables, nuclear, and power services markets. The company also offers unionized management and construction services in the United States and Canada. Fluor Corporation was founded in 1912 and is headquartered in Irving, Texas.

Advisors' Opinion:

• [By Louis Navellier]

  If we look at the sector using Portfolio Grader, we see that many of the big names in the group like Flour (FLR), Granite Construction (GVA) and KBR incorporated (KBR) are rated ��ell.��The anticipated spending for both government and private industry simply hasn�� materialized, and the companies are not seeing revenue or profit growth.

• [By Louis Navellier]

  Fluor Corporation (FLR) is one of the world�� leading heavy construction and engineering firms. I don’t want to imply that this is a bad company because it is actually a very good one. However, Fluor has divisions including Oil & Gas, Industrial Infrastructure, Government, Global Services and Power. Virtually all of them are seeing limited spending as a result of the global slowdown and reduced government spending around the world. The stock is up more than 23% this year, but earnings are actually down on flat revenues. Analysts have been lowering their estimates for the rest of this year as well as 2014, and the stock is currently rated as a by Portfolio Grader. When the economy recovers, I expect will see this company’s fundamentals improve substantially … but until that happens investors should avoid the stock.

• [By CRWE]

  Fluor Corporation�� (NYSE:FLR) Chairman and Chief Executive Officer, David Seaton, and Chief Financial Officer, Biggs Porter, will give a presentation to investors at the Credit Suisse 2012 Engineering & Construction Conference in New York on Thursday, June 7 at 9:00 a.m. Eastern Daylight Time.

• [By The Energy Report]

  JH: One of the areas where the U.S. for decades has been the leading technological power is in small nuclear reactors. We've used them on our aircraft carriers and on our nuclear submarines safely and efficiently. The U.S. has an advantage in understanding small modular nuclear reactors. One of the companies that we have followed for a long time that's working on that is Babcock & Wilcox Co. (BWC). There's also Fluor Corp. (FLR), which is working on small modular nuclear reactors. President Obama and the Department of Energy are funding research on the implementation of small modular nuclear reactors.

Hot Bank Stocks To Invest In 2014: Under Armour Inc.(UA)

Under Armour, Inc. develops, markets, and distributes performance apparel, footwear, and accessories for men, women, and youth primarily in the United States, Canada, and internationally. It offers products made from moisture-wicking synthetic fabrics designed to regulate body temperature and enhance performance regardless of weather conditions. The company provides its products in three fit types: compression (tight fitting), fitted (athletic cut), and loose (relaxed) extending across the sporting goods, outdoor, and active lifestyle markets. Its footwear offerings comprise football, baseball, lacrosse, softball, and soccer cleats; slides; performance training footwear; and running footwear. The company also provides baseball batting, football, golf, and running gloves, as well as licenses bags, socks, headwear, custom-molded mouth guards, and eyewear that are designed to be used and worn before, during, and after competition. Under Armour sells its products through retai l stores, as well as directly to consumers through its own retail outlets and specialty stores, Website, and catalogs. The company was founded in 1996 and is headquartered in Baltimore, Maryland.

Advisors' Opinion:

• [By Dan Caplinger]

  On Friday, Under Armour (NYSE: UA  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

• [By Chris Hill]

  In this installment of Investor Beat, Motley Fool analysts Matt Koppenheffer and Jason Moser explain why they're keeping a close watch on shares of DR Horton (NYSE: DHI  ) and Under Armour (NYSE: UA  ) .

10 Best Safest Stocks To Own Right Now: Petroleo Brasileiro S.A.- Petrobras(PBR)

Petroleo Brasileiro S.A. primarily engages in oil and natural gas exploration and production, refining, trade, and transportation businesses. The company?s Exploration and Production segment involves in the exploration, production, development, and production of oil, liquefied natural gas (LNG), and natural gas in Brazil. This segment supplies its products to the refineries in Brazil, as well as sells surplus petroleum and byproducts in domestic and foreign markets. Its Supply segment engages in the refining, logistics, transportation, and trade of oil and oil products; export of ethanol; and extraction and processing of schist, as well as holds interests in companies of the petrochemical sector in Brazil. The Gas and Energy segment involves in the transportation and trade of natural gas produced in or imported into Brazil; transportation and trade of LNG; and generation and trade of electric power. In addition, the segment has interests in natural gas transportation and d istribution companies; and thermoelectric power stations in Brazil, as well engages in fertilizer business. The Distribution segment distributes oil products, ethanol, and compressed natural gas in Brazil. The International segment involves in the exploration and production of oil and gas, as well as in supplying, gas and energy, and distribution operations in the Americas, Africa, Europe, and Asia. Further, the company involves in biofuel production business. Petroleo Brasileiro was founded in 1953 and is based in Rio de Janeiro, Brazil.

Advisors' Opinion:

• [By David Smith]

  Think about it: 10 years ago the Gulf of Mexico was thought to be headed for oblivion, only to be revived mightily by technology that opened up the deepwater. Activity in Brazil was minimal, and now Diamond Offshore has a baker's dozen rigs working there, most in the deepwater and ultra-deepwater for Petrobras (NYSE: PBR  ) .

• [By Jim Jubak]

  The auction news isn't good for investors in Brazil's Petrobras (PBR), but it could well be a boon for China and Chinese oil companies such as PetroChina (PTR) and CNOOC (CEO).

• [By Rich Smith]

  Following up on its March order with Cameron International�for $600 million worth of subsea "trees" -- equipment affixed to an oil wellhead to regulate the flow of gas and fluids injected into a well to help force oil out -- Brazilian oil major Petroleo Brasileiro (NYSE: PBR  ) (NYSE: PBR-A  ) announced Wednesday that it is ordering another 49 subsea trees, tooling, and associated subsea controls from FMC Technologies (NYSE: FTI  ) in a contract worth $500 million.

• [By Eric Volkman]

  Brazilian energy major Petrobras (NYSE: PBR  ) is bulking up with a series of large-scale bond issues. The company said this week it aims to raise roughly $11 billion in a set of six flotations, to be issued by its subsidiary Petrobras Global Finance.

3 ETFs to Consider While Interest Rates Are Low

Top Casino Companies To Own In Right Now

NEW YORK (ETF Expert) -- I have met David Kotok, chief investment officer at Cumberland Advisors, at several conferences in which we have both been speakers. He is intelligent, amiable and approachable.

Recently, I read an article by Kotok on whether or not Federal Reserve tapering constituted tightening. He suggested that it may not be. He also maintained that Cumberland would remain fully invested because it will take the world's economies many years before reaching a stage in which they will need to deal with maturing assets on the balance sheets of their central banks.

Mr. Kotok wrote in his conclusion:

"When interest rates are maintained at a very low level, the discounting mechanism to value assets works to raise the prices of those assets. That trend will continue worldwide in the major economies for several more years as all of them go through this process of central bank stimulus, plateauing, subsequent tapering, reaching a neutrality level, and then confronting in the out years how to permit the assets of the central bank to roll off and mature over time without shocking those economies." For the most part, I agree with the assessment that rates will remain low in the major economies for many years to come. I also agree that monetary stimulus will be a saving grace for investors during the next few years, though I'm less convinced that tapering will be followed by forward progress toward reaching "neutrality." Instead, I anticipate more "twists" or "QEs," as any sign of economic weakness will foster central bank unwillingness to let an economy stand on its own legs. Perhaps ironically, Kotok's primary explanation for remaining fully invested for several years is the multi-step process central banks will undergo before they shore up their balance sheets. Nowhere did I read that traditional measures of stock valuation matter; nowhere did extremely expensive price-to-revenue ratios factor into the fully invested decision. Come to think of it, the list of non-essentials is so vast, the "all-in" proclamation does not merely ignore fundamental factors like record high price-to-sales ratios (i.e., S&P 500 companies are barely selling "stuff"), it also ignores sub-standard economic growth, lower-than-normal asset volatility and higher-than-typical bullishness. Indeed, everything is boiled down to the singular notion that the world's central banks ensure success for the fully invested participant.

It is a strange thesis indeed to say that interest rates may rise, but if and when they do, they will move slowly enough that one's portfolio would be insulated. It is even stranger that one should place such a high level of faith in the central banks when these are the same institutions that entirely missed the real estate bubble, the infestation of subprime assets as well as the debt crisis in the eurozone. (Yet, now they know what they're doing?)

Don't get me wrong... I am riding the wave with my clients, too. Nevertheless, I do not mind having a small cash cushion for purchasing on a pullback. I also do not mind adding exchange-traded funds that provide an income stream as well as safety through non-correlation.

Here, then, are three ETFs that merit consideration beyond the singular theme of central bank rate manipulation:

1. PowerShares Yuan DimSum Bond Portfolio (DSUM). Two months ago, I explained that a meaningful rotation into China equities was well underway in China ETFs Quietly Becoming Go-To Performers. Last month, I expressed a fondness for the yuan via WisdomTree Chinese Yuan (CYB). Now, I am recommending a bond ETF for those who want less volatility than stocks and a reliable income stream beyond merely holding China's currency as a hedge. DSUM may have an effective duration that is 6-9 months higher than U.S. counterparts iShares Barclays 1-3 Year Treasury (SHY) and iShares 1-3 Year Corporate Credit (CSJ). However, DSUM offers an income stream of roughly 3.3% whereas SHY's 0.3% and CSJ's 0.7% pale in comparison. Moreover, DSUM investors benefit from the underlying bonds being denominated in China's currency, as the yuan/renminbi has steadily appreciated against the dollar since 2006. DSUM is one of the only bond funds with year-to-date gains in 2013 and it has a very weak positive correlation with the S&P 500.

2. First Trust Nasdaq Technology Dividend (TDIV). With the media fanning the flames of the Nasdaq pushing ever closer to 4000 -- with the world buzzing with dot-com excitement over Twitter -- less attention is being paid to "old school" tech. I think that's a shame. While PowerShares Nasdaq 100 (QQQ) currently trades at a P/E near 21, TDIV trades at a more affordable 15.

The income stream for TDIV is roughly 2.5% annually whereas QQQ offers close to 1.1%. While the QQQs may demonstrate 3%-4% greater total return year-to-date, the more reasonable valuation and greater cash flow of TDIV is likely to help one weather a 2014 sell-off. (Yeah, corrections and bears still do occur in stock markets!)

3. Market Vectors Coal (KOL). Has there ever been an industry so universally hated by governments, the general public and now, investors? Yet, with a 30-day SEC yield of 4%, a price-to-book of 1.2 and the current price holding above a 50-day moving average, one might consider KOL as an aggressive contrarian play. After all, you won't find many ETFs where the 50-day moving average is about to experience a "golden cross," climbing above its 200-day.

Follow @etfexpert This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site. Gary Gordon reads: Real Clear Markets Jeff Miller indexuniverse Charles Kirk On Twitter, Gary Gordon follows: Jonathan Hoenig Doug Kass Hard Assets Investor

The TNI Biotech Switch Just Got Flipped to "On" (TNIB)

Most of the time, a budding company eases into its success, starting small, and then working its way into a successful status. Other times - though less often - a company flips a switch, and for all intents and purposes is turned "on", and immediately begin to reward investors. TNI Biotech Inc. (OTCMKTS:TNIB) just flipped its switch to the "on" position.

It may not be a household name (at least not yet), but TNIB may build a name for itself sooner than later, here in the United States as well as abroad. The biotech outfit's claim to fame is a diversified immunotherapy that is effective at treating everything from cancer to HIV to autoimmune diseases. 

It may sound too good to be true, but it isn't. The drugs TNI Biotech Inc. is developing are designed to induce an immune response from an individual, which in the grand scheme of things is the best and first-choice way to fight any disease; a patient's own immune system, if properly prompted, is more effective than any antibiotic or cancer treatment that could be injected or dosed.

The key and since to this fairly universal approach of treating diseases is Low Dose Naltrexone (or LDN) and methionine enkephalin (or MENK). They each have the ability to boost or restore the immune system by increasing the T and NK cells in the body, thereby activating its own natural defenses that haven't been fully activated - or activated at all - in order to fight several major ailments. TNI Biotech's research to date has shown each approach has solid efficacy, and the company has turned the technology into three specific drug candidates. One of them is IRT-103, or Lodonal... a play on the term "Low Dose Naltrexone."

That drug changed everything for the company and its investors today. Via the inking of a distribution agreement with Nigerian company AHAR Pharma, Lodonal is going to be marketed in AHAR's market, generating TNI Biotech's first-ever revenue.

What's so amazing about the announcement isn't that TNIB just became a very real biotech company. What's amazing is the size of the financial commitment AHAR Pharma has made to TNI Biotech for the rights to promote Lodonal.

All told, this partnership will guarantee TNIB more than $50 million in gross revenue next year. That's $50 more than the company will make this year, and $50 million more than this pre-revenue company has ever made. Yes, this is a huge deal for the formerly pre-revenue company.

Ever more compelling than that is how the AHAR deal is completely separate from the drug's revenue opportunity in the United States. Lodonal is ready to enter Phase 3 trials in the United States, and once the FDA responds to the company's planned trial protocols, can begin those trials here in North America. This testing should begin in 2014, and thanks to the AHAR deal will be well funded.

Best Investments In 2014

As for the ultimate potential here - not just for Lodonal but its other two drugs in the pipeline - the HIV/AIDS testing and treatment market is estimated to be worth $14 billion per year, the global oncology market is worth approximately $60 billion per year, and he autoimmune disease market (which includes several ailments) is worth about $44 billion on an annual basis. Combined, the company is working its way into position to enter arenas worth a total of more than $100 billion per year. Even a tiny fraction of that market would be a windfall for TNI Biotech and its shareholders.

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Charles Brandes Q3 Commentary - Emerging-Markets Concerns Rising — So Are Select Opportunities

Uncertainties Create Potentially Attractive Valuations for Stock Pickers

Executive Summary

• Weakness in emerging-market equities has created attractive investment opportunities at the company level.

• Investor preference for index funds and exchange traded funds in emerging markets has resulted in some pronounced valuation distortions—providing a lush landscape for active managers.

• The current negative environment in emerging markets underscores the importance of a going-against-the-herd mentality.

• As recent valuations in emerging markets have become more attractive, we have been slowly adding select positions to our Brandes International Equity Strategy and Brandes Global Equity Strategy.

As true value investors, Brandes oft en moves against the crowd amid markets' constantly changing performance cycles. Take the recent equity market weakness in a number of emerging market (EM) countries for example. Over the last year, while macroeconomic and geopolitical concerns cast a cloud of uncertainty over the asset class in general, we started to see some interesting investment opportunities at the company level as a result of such market weakness.

We believe the recent material outfl ow from EM funds, and the resulting adverse impact on the performance of the MSCI Emerging Markets Index, highlights the importance of active stock selection.1 It also reveals the pitfalls in treating EM—or any market, country, sector, industry or risk factors (such as low-volatility strategies which seek to be less volatile than the underlying index they attempt to replicate) for that matter—as one homogenous group via indexing or exchange traded funds (ETFs). In our view, amid constantly fl uctuating markets, focusing on individual company fundamentals and the price paid to acquire these investments remains the greatest drivers of long-term investment outperformance.

Short-Term Macroeconomic Concerns Contributed to YTD Declines in Emerging Markets

Y! ear to date through September 30, 2013, the MSCI Emerging Markets Index followed a bumpy path and ended down 4.1%, with many of the larger-weighted countries of Brazil, Russia, India, Indonesia and China experiencing weakening currencies and/or equity markets. A number of factors contributed to market concerns:

• Fears of the Federal Reserve tapering its quantitative easing program

• Economic slowdown in China

• Existing and growing structural issues that vary materially from country to country—including large trade imbalances and rising debt levels (especially short- term borrowings)

• Worries over a replay of the Asian fi nancial crisis of the 1990s

After years of strong performance, emerging markets have recently underperformed developed markets (DM), as shown in Exhibit 1.

[ Enlarge Image ]

Recent Emerging-Markets Concerns, Fund Flows and Concentration of Indexes

Th e cautious view of investors is evident in the $11.7 billion (USD) massive outfl ow of invested funds from EM year to date through August 30, 2013.2

Over the last 10-plus years, a signifi cant amount of the assets that fl owed into EM was increasingly allocated to index funds and ETFs. In 2002, passive investment strategies accounted for only 11% of EM investments. By year-end 2012, that percentage had grown to 51%.3 In our view, a key drawback to applying a passive strategy in emerging-market investing is the risk of overconcentration, as illustrated in Exhibit 2. Here we show the level of concentration of the fi ve largest companies in Brazil, Russia, India and China2 (BRIC countries) is high compared to the level of concentration in the United States. This overconcentration may limit investors' opportunity set.

[ Enlarge Image ]

Additionally, particularly in the BRIC countries, the largest fi ve companies tend to be! long to t! wo sectors: financials and energy. As of September 30, 2013, roughly 75% of the total capitalization of the five largest companies in each of the BRIC countries was in these two sectors.4

As a specific example, an EM index fund (or ETF) would have allocated 9.4% to the consumer staples sector during the second quarter even though the top 10 largest EM stocks in this sector were trading at a loft y average price-to-earnings (P/E) ratio of 28x.5 The Brandes Emerging Markets Equity Strategy as well as the Global Equity Strategy and International Equity Strategy had zero allocation to these top 10 names as of September 30, 2013.

Pronounced Valuation Distortions Underscore Importance of Stock Selection

As index funds and ETFs experience large inflows, investors in these passive strategies may be essentially purchasing concentrated holdings without considering price or the possibl

What Money-Smart Women Want

Leave it to a man with a big case of foot-in-mouth disease to reignite the heated conversation about whether women can handle money as well as men. At a recent forum at the University of Virginia, hedge fund manager Paul Tudor Jones remarked that women traders lose focus after becoming mothers and breastfeeding their babies. A predictable flap ensued, and Jones backpedaled and then apologized.

See Also: The Rules of Retirement for Women

Go ahead and roll your eyes, chuckle or stamp your foot, depending on your point of view. Arguing that there are differences in innate ability between the sexes always makes for trouble.

Certainly, when it comes to money management, women have plenty to crow about. Consider Sarah Ketterer, chief executive of Causeway Capital Management, who co-manages its International Value fund (CIVVX) and has helped guide it to the top 21% of its peer group for the ten-year period that ended June 30. In fact, the fund beat its competition in eight of the past ten calendar years.

Mars and Venus

Top Value Stocks To Own For 2014

Results aside, research shows that men and women do approach money and investing differently. A classic study by behavioral finance academics Terrance Odean and Brad Barber is often cited in gender-and-investing debates. The two examined tens of thousands of brokerage accounts from 1991 to 1997 and found that female investors traded less often than their male counterparts, thereby cutting costs — and boosting average returns by nearly one percentage point per year.

Economics professor Gary Charness, of the University of California at Santa Barbara, assembled data from a host of experiments to conclude that women are more risk-averse than men. Study participants were asked to choose how much of their experimental assets to allocate to a risky investment, with a payout at the end of the experiment based on what they'd earned. Given the choice, women invested less, keeping more for themselves. On average, they parted with just 50% of their laboratory windfall, while men were willing to invest about 70%.

And yet, women also tend to squirrel away more money. The Vanguard Group found that more women than men participated in their retirement plans at work, and women earmarked 8% to 11% more of their paychecks for saving.

All of this is significant because women are now the principal breadwinners in four out of ten families with children younger than age 18, reports Pew Research (63% of such women are single and 37% out-earn their husbands). The financial-services industry is taking notice of gender differences, and so should you.

For women, finding an adviser who speaks their language is key. Presentations that focus on a portfolio's return, investment style, market capitalization and performance compared with a benchmark tend to resonate with men. But women prefer a more personalized conversation that focuses on goals, says Karin Risi, head of Vanguard's advice-services unit.

Certified financial planner Eleanor Blayney sees it in her practice. "The husband says, 'How am I doing?' He wants an answer relative to an index, other funds, other clients. But the wife says, 'What does this mean to my lifestyle? To my kid going to college? To our decision to take a vacation? To my retirement plan?'"

For now, the conversation in most financial-services venues is decidedly male-centric, so Vanguard's finding that nearly three-fourths of women surveyed are dissatisfied with the industry isn't surprising. The industry has launched a number of initiatives to tweak communications with clients and recruit more women into the field — which should help everyone in the family play to their strengths.

Why You Should Reshop Your Auto Insurance

There's a good chance you're paying too much for auto insurance. A new study by NerdWallet found that American drivers are overpaying an average of $368 a year to insure their vehicles because they don't shop around for the lowest rates.

SEE ALSO: The Biggest Car Insurance Discounts

Only 12% of drivers surveyed by NerdWallet -- a site with price-comparison tools for dozens of financial products -- said they find car insurance shopping easy. Because most people find the process to be time-consuming and difficult , they go with the first or second rate quote they get, says Maxime Rieman, product manager for the NerdWallet insurance team. By taking the time to comparison shop, though, drivers are more likely to find substantial savings.

NerdWallet analyzed auto insurance quotes for 1,000 zip codes across the U.S. and found that rates for comparable drivers varied by 154%, on average, within any given zip code. For example, rates for a 40-year-old married male with a clean driving record ranged from $993 to $2,338 in New York. In Texas, rates ranged from $1,067 to $3,133. In California, they ranged from $753 to $1,534.

Rieman recommends reshopping your auto insurance once a year to get a sense of rates and to find out if you can get a better deal from another insurer. NerdWallet has an auto insurance comparison tool that approximates rates from several insurers based on key factors, such as your gender, where you live and what type of car you drive. It's a quick way to get quote estimates without entering a lot of personal information.

For more accurate quotes, you can use insurance comparison sites such as InsWeb and Insurance.com, but you'll have to provide more detailed information (see How to Get Accurate Car Insurance Quotes). You also can use TrustedChoice.com to find a local independent agent who can shop for you.

You also should reshop your auto insurance for any of these reasons:

You have a minor traffic violation. Speeding tickets and accidents can impact insurance premiums. So if your insurer hikes your rate after you get in a fender bender, Rieman recommends shopping around. You might find a lower rate from another insurance that doesn't place much of an emphasis on minor traffic violations.

Your zip code changes. If you move -- even to a neighboring city -- you might find rates are lower in your new zip code, Rieman says. See Car Insurance Rates: Location, Location, Location.

Your teenager starts driving. Your auto premiums likely will rise when your teen starts driving. But it is generally cheaper to add your teenagers to your auto policy than for them to purchase their own coverage, according to the Insurance Information Institute. You might find, though, that another insurer offers a better deal for families with teenage drivers than your current insurer does. (Learn more about cutting costs for teenage drivers.)

Forget The Greenback: Invest In These Currencies Instead

The only way the Federal Reserve will stop waving its magic stimulus wand is if job creation miraculously comes to life, rescuing the economy.

I wouldn't hold my breath.  

And, as long as Ben Bernanke and company keep buying bonds to artificially stimulate the economy, the dollar will undoubtedly continue its downward spiral. After the Labor Department reported that the U.S. economy added fewer workers than expected in August, the dollar fell to its lowest level in eight weeks.

Add our nation's nearly $17 trillion in federal debt, excess liquidity, credit-happy consumers and a massive trade balance to meager job growth, and the dollar's further debasing becomes even likelier.

So, while investing in the U.S. dollar might be a losing proposition, some foreign currencies thrive under those circumstances or simply do fine on their own. If you like the idea of cashing in outside our borders, here are a few options. 

Canadian Loonie
After the Fed alluded to easing up on stimulus in back-to-back meetings a few weeks back, the Canadian dollar dropped to a six-week low. Conversely, after poor news on the U.S. jobs front -- and the news that Canada added jobs at triple the forecast rate -- the loonie hit its highest level in two weeks.

So, as long as the U.S. remains status quo on its bond-purchasing plan, expect the loonie to gain momentum. Plus, the facts that Canada is resource-rich and a major exporter of oil and gold to the U.S. add a commodities angle and long-term aspect to the investment. Think of it as hitting the trifecta.

The best way for direct exposure to a rising Canadian dollar against the U.S. dollar is through foreign exchange (forex) trading. If you'd rather keep it simple, the Rydex CurrencyShares Canadian Dollar ETF (NYSE: FXC) will do the job.

Finally, a new group of actively managed exchange-traded funds focused on global currency movements will soon hit the market (courtesy of iShares) for yet another foray into the loonie.

Chinese Yuan
Pay no attention to talk of China's slowing economy. Any economic powerhouse that experiences 10% annual growth over three decades is bound to take a breather. That's precisely what China is experiencing and what plenty of investing gurus are overreacting to.

	Demand for the Chinese yuan is unprecedented, which explains a 29% gain over the past six years and a currency-leading 3.7% increase in the first half of this year.

It's not as though unemployment or low productivity are threatening to snuff out the Red Dragon's fire. On the contrary, the U.S. can only dream about the 7.5% annual growth that China projects in 2013.

Considering estimates that the Chinese economy could reach $123 trillion by 2040 -- or nearly three times the economic input of the entire globe in 2000 -- yuan investors are most likely in for a long, profitable ride. Although China isn't expected to overtake the U.S. in per-capita wealth, China's projected 40% share of global GDP would put the U.S. (14%) and Europe (5%) to shame nearly a quarter-century from now.

Demand for the Chinese yuan is unprecedented, which explains a 29% gain over the past six years and a currency-leading 3.7% increase in the first half of this year. Additionally, it appears that the yuan will be freely traded by 2015. There's no place for it to go except up.

I'd suggest a long-term play such as Chinese Renminbi Trust (NYSE: FXCH), which has the lowest expense ratio, 0.40%, of yuan-focused funds.

Norwegian Krone
The world's seventh-largest oil exporter, Norway's krone is known as a "petrol currency." It is backed by a government with zero debt, a budget surplus worth 11% of GDP, and a wealth fund worth $720 billion, or about $144,000 per man, woman and child.

Norway's central bank, which issues the krone, also boasts one of the highest capital ratios of any central bank in the world at 23.3%. Best of all, it isn't tied to any other currency, making it as low a risk as currency investing gets.

"The krone is not simply an alternative store of wealth, like gold, for example. It offers strong fundamentals, both structural and cyclical,"HSBC currency strategist David Bloom says. "Gold is a quasi-currency; (the krone) is the real thing. It does not simply reflect flows and sentiment. It is a currency that will reflect its economic fundamentals. These remain strong."

Best Stocks To Buy

Because no ETFs exist on the market to buy the krone -- yet -- consider Everbank.com. It offers a foreign currency account that functions like a money market and allows the transfer of money between major currencies.

Risks to consider: While the value of the U.S. dollar won't likely impact the krone, the loonie and yuan are connected at the hip. You may see short-term moves if the Fed acts.

Actions to Take --> Currencies move very slowly, so the best way to buy them is to make regular diversified investments over time.

P.S. -- My colleague Amber Hestla has stumbled onto something big... And since she first started telling people about this strategy, it's helped investors make thousands of dollars. So far, every single Amber's suggested trades has made investors money. We hate to brag, but a 100% track record is nearly unheard of. To learn everything you need to know about her unique income strategy, click here.

S&P 500 Extends Winning Streak to Six Days; Dow Makes the Most of Big Changes

So much for a scary September.

Agence France-Presse/Getty Images

Markets rallied again today, and if a downer of a month is destiny, we’ll have to wait a wee bit longer. The S&P 500 gained 0.7% to 1,683.99 today, while the Dow Jones Industrial Average rose 0.9% to 15,191.06 on a day when big changes were announced for the index.

Today’s rally continued a trend that has belied September’s bad reputation. Consider: Six trading days into the month–and nearly a third of the way through–the S&P 500 has gained 3.1%, and has yet to finish in the red. That’s it’s longest winning streak since July. The Dow Jones Industrial Average, meanwhile, rose fifth time this month, only interrupted by Friday’s 0.1% decline. It’s now up 2.6% so far this month.

Yes, investors are finally feeling some love for risky assets, as the big risks appear to be subsiding. A hard landing in China? Not yet. A U.S. attack on Syria? How about we give peace a chance? Even the beginning of the end for the Fed’s bond buying might not be such a worry if much of the potential damage is already priced in.

Top 5 Medical Companies For 2014

Or maybe not. I spoke with Barclays’ Barry Knapp today and he believes September could get a whole lot tougher. That’s because when the Federal Reserve begins tightening monetary policy–and yes, the end of QE qualifies–the market almost always falls, usually about 7% to 9%. “The market will turn more negative next week as it becomes clear the Fed will start to taper,” Knapp says. “I don’t think September is over.”

And even if that correction doesn’t occur this month, recent history suggest that the big September gains–or losses–in the S&P 500 come early in the month. According to my own admittedly shaky math, the S&P 500 gained 1.9% during the first six days of September in 2012, only to rise 2.6% for the entire month. In 2011, the benchmark fell 5.3% during the first six days of the month and finished down 7%. And in 2010, the S&P 500 gained 5.2% during the first six-trading days and closed September up 9%, a big gain, yes, but more than half the return was earned during the first third of the month.

Who’s feeling like a little risk taking?

Not investors in Restoration Hardware (RH). Its shares have dropped 2% in after-hours trading after it reported a profit of 49 cents a share, above forecasts for 43 cents, but offered mixed guidance. Oxford Industries (OXM) is off 7.3% at $60 after it announced a profit of $1.01, ahead of 98 cents consensus forecasts, but lowered its 2013 guidance. Shares of SunEdison (SUNE) have dropped 5.4% to $7.90 after it announced a secondary offering.

But it hasn’t been all bad news. Lannett (LCI) has gained 1.9% to $16.00 after it reported a profit of 12 cents, above the 7 cents forecast by analysts. And shares of Krispy Kreme (KKD) are unchanged after the company said it would earn 59 cents to 63 cents in the slides for a presentation tomorrow. Considering what happened the last time Krispy Kreme opened its mouth, that has to be considered good news.

Seven Highly Educated Jobs Making the Least Money

More than two-thirds of 2011's college graduates had student debt. Those students, according to the Project on Student Debt, had an average of more than $25,000 in back loans. To make matters worse for many recent graduates, college graduates have a smaller chance of finding a job than they once did.

For some, the jobs they get with their degree pay so little that it can take years for them just to pay off their loans. 24/7 Wall St. reviewed Bureau of Labor Statistics (BLS) data to find jobs that require a bachelor's degree to be competitive, yet pay less than the median annual wage of $34,750. For example, legislators — elected government officials — earn a median of less than $20,000 annually even though most have bachelor's degrees. These are the seven highly educated jobs making the least money.

Click here to see the seven jobs

Part of the reason these jobs pay less than the median is that they are temporary, so a full-time, supporting salary isn't always needed. Graduate-level teaching assistants, who earn a median of just over $30,000 per year, typically pursue a different career once they leave school. Many legislators are only elected for a single term, and some maintain a separate job while in office. President Barack Obama, for example, was a state senator and law school lecturer simultaneously.

In the case of legislators or radio and television announcers, a bachelor's degree is not required, but it tends to provide the skills needed to be successful in these positions. In other cases of low-paying occupations, it is more or less impossible to get a job without a degree. Most clinics require a candidate for a rehabilitation counselor position to have master's degree in counseling or a related field.

In order to identify the seven most overeducated jobs making the least money, 24/7 Wall St. reviewed wage data from the Bureau of Labor Statistics' Occupational Employment Statistics (OES) Database that earned less than the median annual salary of $34,750. We used the BLS Occupational Outlook Handbook to identify educational requirements and long-term job prospects. O*Net Online, an independent career research and advisory site, was used to determine the percentage of people in each occupation with a bachelor's, master's or doctorate. The seven occupations on our list required a bachelor's degree for most employers.

These are the seven highly educated jobs making the most money.

3 Big Stocks on Traders' Radars

BALTIMORE (Stockpickr) -- Put down the 10-K filings and the stock screeners. It's time to take a break from the traditional methods of generating investment ideas. Instead, let the crowd do it for you.

>>5 Stocks Under $10 Set to Soar

From hedge funds to individual investors, scores of market participants are turning to social media to figure out which stocks are worth watching. It's a concept that's known as "crowdsourcing," and it uses the masses to identify emerging trends in the market.

Crowdsourcing has long been a popular tool for the advertising industry, but it also makes a lot of sense as an investment tool. After all, the market is completely driven by the supply and demand, so it can be valuable to see what names are trending among the crowd.

While some fund managers are already trying to leverage social media resources like Twitter to find algorithmic trading opportunities, for most investors, crowdsourcing works best as a starting point for investors who want a starting point in their analysis. Today, we'll leverage the power of the crowd to take a look at some of the most active stocks on the market today.

>>5 Big Short-Squeeze Stocks Ready to Pop

These "most active" names are the most heavily-traded names on the market -- and often, uber-active names have some sort of a technical or fundamental catalyst driving investors' attention on shares. That's especially true now that earnings season is officially underway. And when there's a big catalyst, there's often a trading opportunity.

Without further ado, here's a look at today's stocks.

Bank of America

Nearest Resistance: $14.75

Nearest Support: $14

Catalyst: Technical Setup

>>5 Big Trades for a September Bounce

Bank of America (BAC) is no stranger to making the list of the NYSE's most active stocks purely because of its size -- the $155 billion bank is one of the most visible names in the financial sector. But today's price action is especially warranted thanks to a technical setup taking shape in shares of BAC.

BofA has been trending lower in the near-term since the middle of July, but since its price action has been constrained in a tight range, that correction has at least been easily measured. Today, BAC is testing trendline resistance; a breakout above $14.75 should be seen as a buy signal for the big bank.

Louisiana-Pacific

Nearest Resistance: $17.50

Nearest Support: $14.75

Catalyst: Ainsworth Lumber Acquisition

>>5 Stocks Insiders Love Right Now

Small-cap building product manufacturer Louisiana-Pacific (LPX) is up more than 10% today on big volume, following news that the Nashville-based firm was acquiring Canadian lumber firm Ainsworth Lumber. The news came at the same time as a ratings hike from DA Davidson to "buy" -- not long after a similar upgrade at Deutsche Bank. That increasing analyst sentiment for LPX is helping to spur upside potential after a pretty poor start to the year.

Technically, LPX is forming a double bottom pattern, a reversal setup that's formed by two major swing lows that bottom out at approximately the same price level. The double bottom triggers a buy signal when and if LPX pushes through resistance at $17.50.

Petrobras

Nearest Resistance: $15

Nearest Support: $13.50

Catalyst: Libra Auction Announcement

>>5 Rocket Stocks to Buy in September

Last up is Petrobras (PBR), the $94 billion Brazilian oil and gas supermajor that's been a volatile name for the last month on emerging market news. Shares of PBR are up close to 6% in this afternoon's trading following the announcement that Brazil's government will auction off the Libra offshore oil field on Oct. 21. The deal is likely to be the most expensive energy project in history -- and it'll also likely mean that the buyer will have to partner up with Petrobras to develop the project.

PBR has been consolidating sideways in a tight rectangle pattern since the last week of July, and while today's move higher is big, it's not big enough to break PBR free of that sideways channel. Resistance at $15 is the level to watch for that. Expect a move through $15 to get followed up by more of the same.

PBR has been a volatile name of late, so make sure you keep a tight stop in place if you decide to trade PBR.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.



-- Written by Jonas Elmerraji in Baltimore.

RELATED LINKS:

>>5 Foreign Stocks to Trade for Gains

>>5 Stocks Under $10 Making Big Moves

>>5 Sin Stocks Ready for Dividend Boosts

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to

TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

Follow Jonas on Twitter @JonasElmerraji

5 Hated Earnings Stocks You Should Love

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Stocks Ready to Break Out

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>4 Huge Stocks on Traders' Radars

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

JA Solar

My first earnings short-squeeze play is solar power player JA Solar (JASO), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect JA Solar to report revenue of $250.42 million on a loss of 54 cents per share.

>>5 Tech Stocks Rising on Big Volume

The current short interest as a percentage of the float JA Solar is pretty high at 15%. That means that out of the 30.82 million shares in the tradable float, 4.06 million shares are sold short by the bears. This is a big short interest on a stock with relatively low tradable float. Any bullish earnings news could easily spark a large short-covering really for shares of JASO post-earnings.

From a technical perspective, JASO is currently trending below its 50-day moving average and above its 200-day moving average, which is neutral trendwise. This stock has been downtrending over the last month and change, with shares falling from its high of $9.91 to its low of $7.28 a share. During that move, shares of JASO have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of JASO have started to bounce higher over the last week, and the stock is now moving within range of triggering a near-term breakout trade post-earnings.

If you're bullish on JASO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 50-day moving average at $8.03 a share and then once it takes out more resistance at $8.58 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.96 million shares. If that breakout triggers, then JASO will set up to re-test or possibly take out its next major overhead resistance levels at $9.60 to $9.91 a share. Any high-volume move above those levels will then put its 52-week high at $11.40 into range for shares of JASO.

I would simply avoid JASO or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $7.28 to $6.83 a share with high volume. If we get that move, then JASO will set up to re-test or possibly take out its next major support levels $5.90 to $5.34 a share.

Corinthian Colleges

Another potential earnings short-squeeze trade idea is post-secondary education player Corinthian Colleges (COCO), which is set to release its numbers Thursday before the market open. Wall Street analysts, on average, expect Corinthian Colleges to report revenue of $379.66 million on earnings of 3 cents per share.

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The current short interest as a percentage of the float for Corinthian Colleges is extremely high at 26.1%. That means that out of the 78.97 million shares in the tradable float, 19.98 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2%, or by 392,000 shares. If the bears are caught pressing their bets into a strong quarter, then shares of COCO could rip sharply higher post-earnings as the bears rush to cover some of their short positions.

From a technical perspective, COCO is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways inside of a consolidation pattern for the last three months and change, with shares moving between $2.06 on the downside and $2.97 on the upside. Any high-volume move above the upper end of its recent range could trigger a major breakout trade for shares of COCO post-earnings.

If you're in the bull camp on COCO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $2.75 to $2.90 a share and then once it clears its 52-week high at $2.97 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 777,330 shares. If that breakout triggers, then COCO will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $3.44 to $4 a share.

I would simply avoid COCO or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $2.37 a share and its 200-day at $2.31 a share with high volume. If we get that move, then COCO will set up to re-test or possibly take out its next major support levels at $2.15 to $2.06 a share. Any high-volume move below those levels will then put $1.90 to $1.87 into range for shares of COCO.

Williams-Sonoma

Another earnings short-squeeze candidate is multi-channel specialty retailer of products for the home Williams-Sonoma (WSM), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Williams-Sonoma to report revenue of $939.80 million on earnings of 47 cents per share.

Just this morning, UBS increased its price target on shares of Williams-Sonoma to $61 as consumer spending continues to improve. In the report, UBS also increased its EPS estimates for WSM.

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The current short interest as a percentage of the float for Williams-Sonoma is pretty high at 8.1%. That means that out of the 90.53 million shares in the tradable float, 7.62 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of WSM could rip sharply higher post-earnings and squeeze out some of the short-sellers.

From a technical perspective, WSM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $43.82 to its recent high of $61.38 a share. During that uptrend, shares of WSM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WSM within range of triggering a big breakout trade post-earnings.

If you're bullish on WSM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $60.67 to its 52-week high at $61.38 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 871,462 shares. If that breakout triggers, then WSM will set up enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75 a share.

I would avoid WSM or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $58.03 a share and then below more support at to $56.96 a share with high volume. If we get that move, then WSM will set up to re-test or possibly take out its next major support levels at $52.40 to $51.71 a share.

K12

Another earnings short-squeeze prospect is technology-based education player K12 (LRN), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect K12 to report revenue of $200.96 million on earnings of 3 cents per share.

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The current short interest as a percentage of the float for K12 is extremely high at 18.8%. That means that out of the 26.62 million shares in the tradable float, 5.38 million shares are sold short by the bears. This is a big short interest on a stock with a very low tradable float. Any bullish earnings news could easily send shares of LRN skyrocketing higher post-earnings as the bears rush to cover some of their short bets.

From a technical perspective, LRN is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares pushing higher from its low of $19.92 to its recent high of $32.40 a share. During that uptrend, shares of LRN have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of LRN within range of triggering a big breakout trade post-earnings.

If you're bullish on LRN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $32.40 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 198,859 shares. If that breakout triggers, then LRN will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are its next major overhead resistance levels at $37 to $39.74 a share.

I would simply avoid LRN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support at $29.91 a share and then below its 50-day moving average of $29.80 a share with high volume. If we get that move, then LRN will set up to re-test or possibly take out its next major support levels at $26 to $25.84 a share. Any high-volume move below those levels will then put its 200-day at $24.36 into range for shares of LRN.

Krispy Kreme Doughnuts

My final earnings short-squeeze play is retailer and wholesaler of doughnuts, complementary beverages and packaged sweets Krispy Kreme Doughnuts (KKD), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Krispy Kreme Doughnuts to report revenue of $111.36 million on earnings of 15 cents per share.

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The current short interest as a percentage of the float for Krispy Kreme Doughnuts is notable at 3.8%. That means that out of the 64.23 million shares in the tradable float, 2.37 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 3.3%, or by 77,000 shares. If the bears are caught pressing their bets into a bullish quarter, then shares of KKD could trend sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, KKD is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares moving higher from its low of $12.59 to its recent high of $23.57 a share. During that uptrend, shares of KKD have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of KKD within range of triggering a near-term breakout trade post-earnings.

If you're in the bull camp on KKD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $23.57 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.42 million shares. If that breakout triggers, then KKD will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $30 to $32 a share.

I would avoid KKD or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $20.60 a share to its 50-day moving average at $20.07 a share with high volume. If we get that move, then KKD will set up to re-test or possibly take out its next major support levels at $18 to $16 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

The Benefits Of Starting An IRA For Your Child

While IRAs are well-known among adult investors, they also make excellent savings vehicles for children who, because of their age, are poised to take full advantage of time – and the power of compounding. Your child – regardless of age – can contribute to an IRA provided he or she has earned income from a job. Here, we take a look at two types of IRAs for kids, the benefits these tax-advantaged investment vehicles offer, and how to open and make contributions to an IRA for kids.

Types of IRAs for Kids

There are two different types of IRAs that are suitable for children: traditional and Roth. The primary difference between traditional and Roth IRAs is when you pay taxes on the money that you contribute to the plan. With a traditional IRA, you pay taxes when you withdraw the money during retirement (at your then-applicable tax rate). A traditional IRA contains pre-tax earnings. With a Roth IRA, you pay taxes when you put the money into the account, so it contains earnings after tax. The money grows tax free while it's in either a traditional or Roth IRA.

If you claim your child as a dependent, he may be required to file an income tax return of his own if his income exceeds a certain amount set by the IRS ($6,100 for 2013). If your child earns less than this amount, she is likely in a 0% income tax bracket and she probably won't benefit from the up-front tax deduction associated with traditional IRAs. Because of this, it makes sense in most cases to focus on Roth IRAs. With a Roth IRA, you get no deduction when you make contributions, but years later the money – both contributions and earnings – comes out tax-free. In general, the Roth IRA is the IRA of choice for minors who have limited income and who, therefore, would not benefit from a deductible traditional IRA.

Because many kids don't earn enough money to benefit from the up-front tax deduction associated with traditional IRAs, it makes sense in most cases to focus on Roth IRAs. With a Roth IRA, you get no d! eduction when you make contributions, but years later the money – both contributions and earnings – comes out tax-free. In general, the Roth IRA is the IRA of choice for minors who have limited income and who, therefore, would not benefit from a deductible traditional IRA.

Benefits of IRAs for Kids

Opening an IRA for your child provides him or her not only a head start on saving for retirement, but also valuable financial lessons. Even a small IRA (Schwab, for example, allows you to open a custodial account with just $100) can provide a platform to teach your child about taxes, retirement, compounding, and the relationship between earning, saving and spending.

While retirement income is likely to be the last thing on your young child's mind, most kids are intrigued with the idea that a small investment today can turn into a big chunk of change later. Young children may not understand the concepts behind interest, earnings and compounding, but they are old enough to appreciate the fact that their money can grow.

A single $1,000 IRA contribution made at age 10, for example, could grow to $11,467 over 50 years, assuming a conservative 5% average annual growth rate. Contribute $50 each month, and the account might grow to $137,076 (with the initial $1,000 contribution and the same hypothetical growth rate of 5%). Or double the contribution to $100 each month and the account could reach $262,685. As children make more money and eventually become adult earners, their annual contributions are likely to be higher, and the IRA could grow correspondingly. Setting aside money each month or year for an IRA – even if the contributions are small – helps your child develop awareness and healthy financial habits.

Another benefit of IRAs is that your child may be able to tap into the account for qualified higher education expenses and up to $10,000 towards a down payment on a first home without penalty. With a Roth IRA, you can withdraw any contributions, but not the investment earnings, for any reason without tax or penalty.

IRA Accounts

If your child is a minor (under age 18 in most states; under age 19 and 21 in others), many banks, brokers and mutual funds will let you set up a custodial or guardian IRA. As the custodian, you (the adult) control the assets in the custodial IRA until your child reaches age 18 (or 21 in some states), at which point the assets are turned over to him or her. The IRA is opened in your child's name, and you will have to provide his or her social security number when you open the account. Keep in mind, not all firms allow minors to have IRAs. Firms that currently open accounts for minors include:

Charles Schwab E*Trade Scottrade T. Rowe Price TD Ameritrade Vanguard Children of any age can contribute to an IRA as long as they have earned income from a job, be it babysitting, yard work or walking neighborhood dogs. For 2013, the maximum your child can contribute to an IRA (either traditional or Roth) is the lesser of $5,500 or his or her taxable earnings for the year. For example, if your son earns $3,000 this year, he could contribute up to $3,000 to an IRA; if your daughter earns $10,000, she could contribute only $5,500, the maximum contribution. If your child has no earnings, he or she cannot contribute at all.

The important thing to remember is that your child must have earned income during the year for which a contribution is made. Money from allowance or investing income does not count as earned income and, therefore, cannot be used towards contributions. Ideally, your child will receive a W-2 for work performed; otherwise, it is a good idea to keep excellent records from jobs that don't provide a W-2: babysitting, yard work, mothers' helpers, entrepreneurial endeavors, etc. Your records should include:

Type of work When the work was done For whom the work was done How much your child was paid You may be able to pay your child for work done around the house provided it is legitimate and the pay is at the going market rate (you probably won't get away with paying your son $150 an hour to mow the lawn, for example). If your family has a business, you can put your child to work doing age-appropriate tasks for reasonable pay. Your business minimizes its tax liability and your child earns income that will qualify him or her to make an IRA contribution.

Many parents choose to "match" their child's earnings and make the IRA contribution themselves. For example, if your daughter earns $3,000 at a summer job, you can let her spend her money as she wishes and you make the $3,000 IRA contribution with your own money. You might also offer to contribute a percentage of what your child earns, such as 50% (your child earns $3,000 and you contribute $1,500). Whatever approach you decide to take, the IRS doesn't care who makes the contribution as long as it does not exceed your child's earned income for the year. Since the contribution is made to your child's IRA, your child – not you – receives any tax deduction.

The Bottom Line

Young people have a tremendous advantage in time: even relatively small IRA contributions can grow significantly over time due to the power of compounding. In addition to the cold hard cash building in an IRA account, your child will have the added benefit of developing healthy financial habits: many financial experts and educators believe that the earlier children begin learning about money, the better their chances for financial stability in the future.