senior financial analyst, BankRate.com

Survey Says

On Twitter: @BankRateGreg

Links: http://www.bankrate.com/finance/checking/free-credit-union-checking-still-thrives.aspx

manager, Baird Small Cap Value

MoneyLife Market Call

On Twitter: @rwbaird.com

Links: www.bairdfunds.com

ShortHeadline: Michelle Stevens, manager of the Baird Small Cap Value fund (BSVSX) said that smaller companies are particularly attractive right now because they face less international exposure to the problems that are plaguing the global economy.

DetailInformation: In the MoneyLife Market Call interview with Chuck Jaffe, MarketWatch senior columnist, Stevens acknowledged her small-cap bias, but noted that “I do think, particularly right now, [small “cap stocks] are more attractive than large caps. That is counter to what some people are saying, but if you look at large-caps “ and yes they are cheap on the surface in terms of price-to-earnings ratios and some other metrics “ they are getting there in ways that maybe don’t deserve a multiple. “We’ve seen an awful lot of cost-savings out of large companies,” she said, “they have gotten a lot of earnings growth from things like currency translation, and the underlying revenue growth for many of those businesses is not all that inspiring.” In small caps, she noted, investors get better organic revenue growth, which is what matters when trying to build a solid multiple in this market. “The other element we like is that small-caps are much more domestic-focused,” she said. “You’ve got about half the exposure to international revenue in domestic small-cap stocks -- so it’s roughly 18% versus 35% for large-caps -- and in this market we like that because we’re not very bullish on growth prospects for the EuroZone and even some emerging markets like China, where we see downside risk.” Among the small-cap stocks Stevens likes now: Valmont Industries (VMI), Hexcel Corp. (HXL), and Ascena Retail Group (ASNA). During “Hold It or Fold It,” when guests give their appraisal of stock requests made by the MoneyLife audience, Stevens said she would buy Thermo Fisher Scientific (TMO), Linn Energy (LINE) and Shuffle Master (SHFL), she called I.D. Systems (IDSY) a “value trap,” put a sell on Seaspan Corp. (SSW), and said she would short KB Home (KBH).

head of Legg Mason Global Asset Allocation

Survey Says

On Twitter: @scholars_choice

Links: https://scholarschoice.myleggmason.com/portal/server.pt?open=18&objID=84213&cached=true&mode=2&userID=383474

editor, Kiplinger's Personal Finance

Big Interview

On Twitter: @janetbodnar; @kiplinger

Links: www.annualcreditreport.com

senior financial analyst, BankRate.com

Survey Says

On Twitter: @BankRateGreg

Links: http://www.bankrate.com/finance/checking/free-credit-union-checking-still-thrives.aspx

author of the Visual Guide to Financial Markets

Big Interview

On Twitter: @TheOneDave

Links:

partner, Tweddell Goldberg Investing

MoneyLife Market Call

Links: www.tginvesting.com

managing director, Thornburg Investments

Big Interview

Links: http://www.mhprofessional.com/product.php?cat=106&isbn=0071791116

ShortHeadline: Author of "Income Investing: An Intelligent Approach to Profiting from Bonds, Stocks and Money Markets"

Editor, Upside and Dow Theory Forecasts

MoneyLife Market Call

Links: www.dowtheory.com; www.upsidestocks.com

ShortHeadline: Rich Moroney, editor of both the Dow Theory Forecast and Upside newsletters, said he likes banks "more than I have probably ever liked banks," noting that attractive valuations have him looking at stocks most investors are avoiding, while he is shying away from the popular sectors like utilities and consumer staples.

chief investment officer, Harris Private Bank

Big Interview

Links: https://www4.harrisbank.com/Harris+Private+Bank+Home+Page

ShortHeadline: Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said that investors will spend the next four or five years in a mode of "active risk management" while the government starts to deal with a national debt problem and ultimately moves to the launching pad for a long-term secular bull market that could last over a decade.

DetailInformation: In the "Big Interview" on MoneyLife with Chuck Jaffe, MarketWatch senior columnist, Ablin said that "the market has to underperform the economy by, say, 30% over the next five years – which means we will see negative numbers in equities – to get to a point where we could then get in and say 'Now is the time to actually close your eyes and buy, and this is a great buy-and-hold opportunity.'" "I still think we are four years away," Ablin said. “If we can somehow resolve the national debt, then we have many more opportunities than we have challenges.” In the intervening period, Ablin noted that investors are likely to face conditions similar to what they have seen for the last decade or more, forcing them into a defensive posture. "If I were to set a course for the next four years … I would say that Treasury bonds are probably not a great place to be, that higher-risk equities are not a great place to be," Ablin said. "Where I would concentrate rather than at the extremes of the risk barbell … is in the middle, so you can perhaps build a portfolio of some of these hybrid securities like REITs, preferreds and master limited partnerships where you are trying o collect yield in the current environment but your valuations are anchored to more of an equity orientation."