Top Cheap Stocks To Own Right Now

Bank fees rose for the 15th straight year, with fees for overdrafts and out-of-network ATM usage hitting record highs, according to Bankrate.com.

The average overdraft charge rose 3% in 2013, to a record $32.20, Bankrate says. The average cost for using another bank's ATM rose 2%, to $4.13 ��also a record.

"Overdraft and out-of-network ATM fees are the low-hanging fruit in terms of raising fees," says Greg McBride, senior financial analyst for Bankrate.com.

Overdraft fees have risen so far that a recent study by Moebs Services says that it's cheaper to borrow $100 from a payday lender than it is to bounce a $100 check. The median price for a $100 loan from a payday lender is $18, Moebs says.

The fees in both cases are entirely avoidable, McBride says.

Overdraft fees were steepest in Milwaukee, where they average $34.16, and lowest in San Francisco, where they average $27.18.

Top Cheap Stocks To Own Right Now: Sirius XM Radio Inc.(SIRI)

Sirius XM Radio Inc. provides satellite radio services in the United States and Canada. It broadcasts a programming lineup of approximately 135 channels of commercial-free music, sports, news and information, talk and entertainment, traffic, and weather on subscription fee basis through two satellite radio systems in the United States; and holds an interest in the satellite radio services offered in Canada. The company also simulcasts music and selected non-music channels over the Internet; and offers applications to allow consumers to access its Internet services on mobile devices. As of December 31, 2010, it had 20,190,964 subscribers. In addition, the company designs, establishes specifications, sources or specifies parts and components, and manages various aspects of the logistics and production of satellite radios; licenses its technology to various electronics manufacturers to develop, manufacture, and distribute radios under various brands; and imports radios distri buted through its Websites. The company?s satellite radios are primarily distributed through automakers, retailers, and its Websites. Further, it provides music services for commercial establishments; a satellite television service to offer music channels as part of certain programming packages on the DISH Network satellite television service; music and comedy channels to mobile phone users through mobile phone carriers; Backseat TV, a service offering television content designed primarily for children in the backseat of vehicles; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedules and scores, and movie listings; and real-time traffic and weather services. The company was formerly known as Sirius Satellite Radio Inc. and changed its name to Sirius XM Radio Inc. in August 2008. Sirius XM Radio Inc. was founded in 1990 and is headquartered in New York, New York.

Advisors' Opinion:

• [By Rick Munarriz]

  2. Turn up the radio
  Sirius XM Radio (NASDAQ: SIRI  ) hit a five-year high this week after reporting mixed quarterly results.

  The satellite radio provider actually missed Wall Street's top- and bottom-line targets for the first quarter, but investors shook that off as Sirius XM stuck to its earlier guidance and actually beefed up its free cash flow outlook.

• [By Rick Munarriz]

  Things never get dull for the country's lone satellite-radio provider. Shares of Sirius XM Radio (NASDAQ: SIRI  ) moved lower this week, closing 2.3% lower to hit $3.01. The general market moved lower, but it didn't take as big a hit.

Top Cheap Stocks To Own Right Now: Progress Software Corporation(PRGS)

Progress Software Corporation operates as an enterprise software company worldwide. Its products include Progress OpenEdge platform, which offers development tools, application servers, application management tools, and an embedded database; Progress Orbix to address enterprise integration problems with standards-based solutions; and Progress ObjectStore, an object data management system to store data faster than relational database management system or file-based storage system. The company?s products also comprise Progress Responsiveness Process Management suite for business users; Progress Control Tower, an interactive business control panel; Progress Sonic, which comprises an enterprise messaging system and the enterprise service buses; Progress Actional that provides operational and business visibility, root cause analysis, and policy-based security and control of services; Progress Apama, which offers tools for creating, testing, and deploying strategies for applicat ions, including algorithmic trading, market aggregation, smart order routing, market surveillance and monitoring, and risk management; Progress Savvion BusinessManager, a business process management software; and Fuse products that provide customers with access to professional open source integration and messaging software. In addition, it offers Progress DataDirect Connect products, which provide data connectivity components; Progress DataDirect Shadow to provide foundation architecture for standards-based mainframe integration; and Progress Data Services product set that offers data integration for distributed applications. Further, the company provides maintenance, consulting, training, and customer support services. Progress Software Corporation sells its products to independent software vendors, original equipment manufacturers, and system integrators through direct sales force and independent distributors. The company was founded in 1981 and is based in Bedford, Massac husetts.

Advisors' Opinion:

• [By Rich Duprey]

  Believing it should have a single, cohesive platform for the development of�cloud and mobile application development technologies, Progress Software (NASDAQ: PRGS  ) announced this morning it was selling its�Apama�complex event processing solution to Software AG for an undisclosed sum.

• [By Rick Munarriz]

  Progress Software (NASDAQ: PRGS  ) moved higher after posting better-than-expected quarterly results this week. The provider of developer tools software saw revenue rise by a better-than-expected 10%, and its adjusted net income of $0.27 a share blew past the $0.22 a share that the market was forecasting.�

Best Safest Companies To Invest In Right Now: Bank of America Corporation(BAC)

Bank of America Corporation, a financial holding company, provides banking and nonbanking financial services and products to individuals, small- and middle-market businesses, large corporations, and governments in the United States and internationally. The company?s Deposits segment generates savings accounts, money market savings accounts, certificate of deposits, and checking accounts; and Global Card Services segment provides the U.S. consumer and business card, consumer lending, international card and debit card services. Its Home Loans & Insurance segment offers consumer real estate products and services, including mortgage loans, reverse mortgages, home equity lines of credit, and home equity loans. It also provides property, disability, and credit insurance. The company?s Global Commercial Banking segment offers lending products, including commercial loans and commitment facilities, real estate lending, leasing, trade finance, short-term credit, asset-based lending, and indirect consumer loans; and capital management and treasury solutions, such as treasury management, foreign exchange, and short-term investing options. Its Global Banking & Markets segment provides financial products, advisory services, settlement, and custody services; debt and equity underwriting and distribution, merger-related advisory services, and risk management products; and integrated working capital management and treasury solutions. The company?s Global Wealth & Investment Management segment offers investment and brokerage services, estate management, financial planning services, fiduciary management, credit and banking expertise, and asset management products. Bank of America Corporation serves customers through a network of approximately 5,900 banking centers and 18,000 automated teller machines. It was formerly known as NationsBank Corporation and changed its name on October 1, 1998. Bank of America Corporation was founded in 1874 and is based in Charlott e, North Carolina.

Advisors' Opinion:

• [By Jessica Alling]

  First things first -- immediately following the bank's earnings report, its shares rose 4% in trading thanks to a 30% increase in profits, among other improvements. But two days later, Bank of America (NYSE: BAC  ) underwhelmed the Street and most of the Big Four banks dropped pretty rapidly on the trading boards. After a week, investors came back to the banks and remembered that analyst expectations are not everything when it comes to earnings and brought Citi back to its post-earnings highs.

• [By Alyce Lomax]

  Bank of America (NYSE: BAC  ) has been landing in heaps of trouble lately, bringing back memories of the worst things about the financial crisis and housing crash. The most recent outrage has been allegations that it paid bonuses and even gift cards to employees who foreclosed on homeowners, lying to borrowers and its government rescuer. Meanwhile, New York has also sued HSBC (NYSE: HBC  ) for ignoring state law requiring that banks give homeowners opportunities to modify their loans and avoid losing their homes.

• [By Matt Koppenheffer]

  Analysts predicting quarterly earnings aren't the only ones that are pessimistic. Wall Street "strategists" -- the folks telling investors how they should allocate their investment dollars -- remain pessimistic on stocks. Bank of America's (NYSE: BAC  ) Merrill Lynch maintains a measure it calls the "Sell Side Indicator" that tracks the allocation suggestions of strategists. Currently, that indicator shows these experts recommending that investors keep just 49.8% of their portfolio in stocks. Here's how B of A's Savita Subramanian interprets that level:

Top Cheap Stocks To Own Right Now: Uranium Resources Inc.(URRE)

Uranium Resources, Inc. engages in the acquisition, exploration, development, and mining of uranium properties, using the in situ recovery or solution mining process. It owns developed and undeveloped uranium properties in South Texas; and undeveloped uranium properties in New Mexico. The company?s primary customers include utilities who utilize nuclear power to generate electricity. Uranium Resources, Inc. was founded in 1977 and is based in Lewisville, Texas.

Advisors' Opinion:

• [By John Udovich]

  Since the start of the week, small cap nuclear fuel stock USEC Inc (NYSE: USU) more than doubled for investors, something that has not happened for investors in uranium stocks like Uranium Resources, Inc (NASDAQ: URRE), Denison Mines Corp (NYSEMKT: DNN), Ur-Energy Inc. (NYSEMKT: URG) and Uranerz Energy Corp (NYSEMKT: URZ). To recap: USEC Inc closed at the $6 level on Friday, but then it surged to the $15 level on Monday only to open at the $10 level on Tuesday when it ultimately closed at $12.46. So what in the world is going on with USEC Inc and is it time to revisit nuclear fuel and uranium stocks?

Top Cheap Stocks To Own Right Now: S&P Smallcap 600(PH)

Parker Hannifin Corporation manufactures fluid power systems, electromechanical controls, and related components worldwide. Its Industrial segment offers pneumatic and electromechanical components, and systems; filters, systems, and instruments to monitor and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors that control, transmit, and contain fluid; hydraulic components and systems for builders and users of industrial and mobile machinery and equipment; critical flow components for process instrumentation, healthcare, and ultra-high-purity applications; and static and dynamic sealing devices. This segment sells its products to original equipment manufacturers (OEMs) and their replacement markets in the manufacturing, transportation, and processing industries. The company?s Aerospace segment provides flight control systems and components, including hydraulic, electrohydraulic, electric backup hydraulic, electrohydrostatic, and electro -mechanical components for precise control of aircraft rudders, elevators, ailerons, and other aerodynamic control surfaces. It also provides electronics thermal management heat rejection systems, and single-phase and two-phase heat collection systems for radar, ISAR, and power electronics. This segment markets its products primarily to OEMs in the commercial, military, and general aviation markets, as well as to end users. Its Climate and Industrial Controls segment offers systems and components primarily for use in the mobile and stationary refrigeration, and air conditioning industry; and in fluid control applications in various industries, such as processing, fuel dispensing, beverage dispensing, and mobile emissions. This segment serves OEMs and their replacement markets. Parker-Hannifin Corporation markets its products through direct-sales employees, independent distributors, wholesalers, and sales representatives. The company was founded in 1918 and is headquartered i n Cleveland, Ohio.

Advisors' Opinion:

• [By Marc Bastow]

  Motion and control systems manufacturer Parker-Hannifin (PH) raised its quarterly dividend 4.6% to 45 cents per share, payable on Dec. 6 to shareholders of record as of Nov. 8. The increase marks the 57th consecutive annual dividend increase.
  PH Dividend Yield:�1.55%

• [By Stephen Rosenman]

  Can you really take a company's yearly guidance seriously? Who can predict future events a year from now? It's so hard most companies skip the ordeal. Who can blame them? So many unforeseen events can derail a company's guidance. Yet, a few daredevil companies continue giving their yearly outlook. As far as I'm concerned, that's akin to writing the front page of next year's Wall Street Journal. I've already highlighted how Caterpillar (CAT) and Parker Hannifin (PH) - two excellent companies - almost never get their yearly guidance right.

• [By Ben Levisohn]

  The market in aggregate might have gone nowhere, but that wasn’t for lack of big moves from individual stocks. Parker-Hannifin (PH) gained 2.4% to $115.06 after it was upgraded to Outperform from Neutral at Baird, while Newmont Mining (NEM) gained 2.2% as gold miners headed higher today.

Top Cheap Stocks To Own Right Now: Gold Reserve Inc(GRZ)

Gold Reserve Inc., an exploration stage company, engages in the acquisition, exploration, and development of mining projects. The company was founded in 1956 and is based in Spokane, Washington.

Top Cheap Stocks To Own Right Now: Partner Communications Company Ltd.(PTNR)

Partner Communications Company Ltd. provides various telecommunications services in Israel. It offers cellular telephony services on GSM/GPRS and UMTS/HSDPA networks. The company also provides basic services, including domestic mobile calls, international dialing, roaming, voice mail, short message services, intelligent network services, content based on its cellular portal, data and fax transmission, and other services. In addition, it offers Internet services provider services that provides access to the Internet, as well as home WiFi networks; value added services, such as anti-virus and anti-spam filtering; and transmission services; and Web video on demand services, music tracks, and games. Further, the company provides voice over broadband and primary rate interface fixed-line telephone services; and data capacity services. Additionally, it offers content services comprising voice mail, text, and multimedia messaging, as well as downloadable wireless data application s, including ring tones, music, games, and other informational content; and sells handsets, phones, routers, and related equipment. The company markets its products through its sales centers, business sales representatives, traditional networks of specialized dealers, and non-traditional networks of retail chains and stores under the Orange brand name. Partner Communications Company Ltd. was founded in 1997 and is headquartered in Rosh Ha-ayin, Israel.

Advisors' Opinion:

• [By Roberto Pedone]

  Another under-$10 wireless telecom player that's starting to move within range of triggering a major breakout trade is Partner Communications (PTNR), a telecommunications company, provides cellular and fixed-line telecommunication services in Israel. This stock is off to a strong start in 2013, with shares up sharply by 29%.

  If you take a look at the chart for Partner Communications, you'll notice that this stock has been trending sideways for the last month, with shares moving between $7.28 on the downside and $7.96 on the upside. Shares of PTRN are bucking the overall market weakness today as the stock starts to move within range of triggering a breakout trade above the upper-end of its sideways trading chart pattern.

  Market players should now look for long-biased trades in PTNR if it manages to break out above some near-term overhead resistance levels at $7.80 to $7.85 a share and then once it clears its 52-week high at $7.96 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 107,303 shares. If that breakout triggers soon, then PTNR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $10 to $12.20 a share.

  Traders can look to buy PTNR off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.38 to $7.28, or below its 50-day at $6.97 a share. One can also buy PTNR off strength once it clears those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top Cheap Stocks To Own Right Now: Wendy's/Arby's Group Inc.(WEN)

The Wendy's Company operates as a quick-service hamburger company in the United States. The company, through its subsidiary, Wendy's International, Inc., operates as a franchisor of the Wendy's restaurant system. As of December 26, 2011, the Wendy's system comprised approximately 6,500 franchise and company restaurants in the United States and the United States territories, as well as in 26 other countries worldwide. The company was formerly known as Wendy's/Arby's Group, Inc. and changed its name to The Wendy's Company in July 2011. The Wendy's Company was founded in 1884 and is headquartered in Dublin, Ohio.

Advisors' Opinion:

• [By Chad Fraser]

  Nearly four years later, the call has paid off nicely, with Tim’s shares rising 104.0% since that article was released. The company has also paid a dividend since it was spun off by Wendy’s (NYSE: WEN) in 2006 and has raised its payout every year since 2008. It currently yields 1.76%.

• [By Brian Pacampara]

  What: Shares of Wendy's� (NASDAQ: WEN  ) climbed 10% today after the fast-food restaurant operator posted strong quarterly results and announced a plan to sell about 425 restaurants by mid-2014.�

• [By Rick Aristotle Munarriz]

  AP The hungry will get some new value-priced dining options at McDonald's (MCD) next month as the world's largest restaurant chain breaks the buck to offer a broader Dollar Menu. Facing what it foresees will be a challenging holiday quarter, McDonald's is going national with the Dollar Menu & More menu that it has been testing in five markets. The rollout will officially kick off on Nov. 4, but may be available at an eatery near you before that. McDonald's will make sure that you hear all about it. A national advertising campaign will kick off a week after its debut. Bucking the Trend The premise of Dollar Menu & More is simple. Instead of simple sandwiches, side salads, and dessert treats for a dollar, the new offerings will be slightly more robust and sell for $2. There will also be shareable items available for $5. Franchisees are on board with the shift -- indeed, they'd been pushing for it, and it's easy to see why. The profit on a $1 McDouble sandwich is far less than what they can earn by merely adding bacon to the same burger and charging $2 for it. With labor and operating costs on the rise, the burger beast probably didn't have much of a choice. Pricing flexibility is a big reason why rival Wendy's (WEN) moved away from a value menu where everything set patrons back just 99 cents. It now has more wiggle room under its "Right Price Right Size" signage. If poultry or beef prices shoot higher, it can adjust accordingly. McDonald's now feels that it can offer different value items at dollar intervals. This would make it seem as if customers will wind up paying more when they head out to the Golden Arches next month, but there's more to offering bargains than meets the eye. Too Much Gilding on the Golden Arches McDonald's knows it has a problem. After nearly a decade of consistently rising same-restaurant sales, McDonald's has posted several negative months of unit-level activity since last October. The company concluded that trying to m

• [By Alex Planes]

  The beginning of another error
  Other companies might have learned something from the major failure of USX, but Triarc wasn't one of those companies. On April 24, 2008, the holding-company owner of the Arby's fast-food chain made a $2.3 billion offer to acquire Wendy's (NASDAQ: WEN  ) , then the third-largest burger franchise in the United States. Pam Thomas Farber, daughter of Wendy's founder Dave Thomas, expressed great dismay over the sale, telling The New York Times, "It's a very sad day for Wendy's, and our family," and adding that Dave Thomas "would not be amused" if he had been alive to hear the news.

Medicare Part B and Part D Premiums for 2014

How much will I pay in premiums for Medicare Part B in 2014? And is there still a high-income surcharge for Part B and Part D prescription-drug coverage?

SEE ALSO: Special Report on Navigating Medicare

The monthly premium for Medicare Part B remains $104.90 for most people in 2014 – the same as in 2013. Seniors whose 2012 adjusted gross income (plus tax-exempt interest income) was more than $170,000 if married filing jointly or $85,000 if single will continue to pay higher premiums, as they have since 2007. The high-income surcharges remain the same as in 2013. If your gross income crosses the threshold, your total monthly premiums will range from $146.90 to $335.70 per person per month, depending on your income.

High-income seniors will also pay extra for their Medicare Part D prescription-drug coverage. The monthly surcharge of $12.10 to $69.30 (depending on income) will be added to the insurer's premiums (see the table below). The Part D surcharges are slightly higher than they were in 2013.

Both the Part B and Part D surcharges are based on your income in 2012, which is the last tax return the government has on file for most people. You can contest the surcharges if your income has dropped since then because of certain "life-changing events": getting married or divorced or becoming widowed; you or your spouse retiring or reducing your work hours; or losing income-producing property due to a disaster. For more information, see Medicare Premiums: Rules for Higher-Income Beneficiaries.

The Centers for Medicare and Medicaid Services also announced that the Medicare Part A deductible, which people pay when admitted to the hospital, will increase by $32 in 2014, to $1,216. That deductible covers up to 60 days of Medicare-covered inpatient hospital care. Beneficiaries will pay $304 per day for days 61 through 90 in 2014 (up from $296 in 2013) and $608 per day for hospital stays beyond 90 days (up from $592 in 2013). The daily coinsurance rate for days 21 through 100 in a skilled-nursing facility rises from $148 to $152.

For more information about open enrollment for 2014 Medicare Part D or Medicare Advantage plans, which runs until December 7, see Time for Medicare Open Enrollment.

table.kip-table { font-size: 12px; border: 1px solid #ccc; } .kip-table td { padding: 7px 5px; margin: 3px; } .kip-table thead td { background-color: #069; color: #fff; Font-size: 10px; font-weight: bold; } .kip-table tbody tr td { border-left: 1px solid #ccc; } .kip-table tbody tr td.left-head { border-left: none; color: #000; font-weight: bold; } tr.odd { background-color: #e8eaeb; }

	2012 ADJUSTED GROSS INCOME
	$85,000 or less (single), $170,000 or less (joint)	$85,001 to $107,000 (single), $170,001 to $214,000 (joint)	$107,001 to $160,000 (single), $214,001 to $320,000 (joint)	$160,001 to $214,000 (single), $320,001 to $428,000 (joint)	More than $214,000 (single), more than $428,000 (joint)
2014 Medicare Part B monthly premium	$104.90	$146.90	$209.80	$272.70	$335.70
2014 Medicare Part D monthly premium	premium only	$12.10 surcharge	$31.10 surcharge	$50.20 surcharge	$69.30 surcharge

Top 5 Dividend Stocks To Invest In 2014

Got a question? Ask Kim at askkim@kiplinger.com.

China Stocks Sink to 7-Week Low as PBOC Fails to Cut Money Rates

Chinese stocks slumped, dragging the benchmark gauge to the lowest level in seven weeks, as small companies plunged and the central bank's first cash injection in two weeks failed to reduce money-market rates.

Tsinghua Tongfang Co., a maker of personal computers, tumbled 6.2 percent to lead losses among technology companies. Zhejiang Beingmate Technology Industry & Trade Co. (002570) fell 8.9 percent after third-quarter net income plunged. The ChiNext index of Shenzhen-listed companies sank 5.1 percent, the most since June 24. The fixing on the seven-day money-market rate rose seven basis points to 5 percent. A gauge of financial shares pared its gain to 1 percent after rallying 3.6 percent.

The Shanghai Composite Index (SHCOMP) fell 1.7 percent to 2,097.38 at 1:21 p.m. local time, reversing an advance of 1.4 percent. The People's Bank of China added 13 billion yuan ($2.1 billion) using seven-day reverse-repurchase agreements today, according to a trader at a primary dealer required to bid at the auctions.

"We were rising in the morning because of the reverse repo, but after pricing that in, we have to note the market is still in a weak mode," said Zhang Haidong, analyst at Tebon Securities Co. in Shanghai. "Liquidity is still tight."

The Shanghai measure has lost 3.4 percent this month, poised for the first decline since June, and trades at 8.4 times projected profits for the next 12 months. That's lower than the seven-year average of 15.4.

5 Best Insurance Stocks To Own Right Now

The CSI 300 Index dropped 1.2 percent to 2,338.45. The Hang Seng China Enterprises Index (HSCEI) of mainland companies traded in Hong Kong climbed 0.6 percent. The Bloomberg China-US Equity Index fell 1.2 percent in New York yesterday.

Company Earnings

Trading volumes in the Shanghai index were 1 percent above the 30-day average for this time of day, after falling to the lowest level in two months yesterday, according to data compiled by Bloomberg. Earnings at the 146 companies in the Shanghai gauge tracked by Bloomberg that reported results so far this quarter have trailed analyst estimates by 5.7 percent.

Tsinghua Tongfang dropped to 8.12 yuan. A gauge of technology companies fell 4.4 percent on the CSI 300, the most among 10 industry groups. Zhejiang Beingmate slumped 8.9 percent to 33.05 yuan after third-quarter net income plunged 59 percent from a year ago. The ChiNext pared this year's gains to 71 percent.

"Small-cap companies had risen a lot previously and earnings so far aren't good, so it's damping market sentiment," says Wei Wei, an analyst at West China Securities. "There's still concern about the economy. The only thing supporting the market today is banking stocks."

Lenders Gain

Ping An Bank Co. climbed 4.8 percent to 13.75 yuan. Industrial Bank Co. advanced 3.4 percent to 11.93 yuan.

China may start a trial of preferred share offerings in industries including banking and electricity generation, the China Securities Journal reported, citing unidentified investment bankers.

"This could alleviate some of the funding pressure faced by medium-size banks,"said Gerry Alfonso, a trader at Shenyin & Wanguo in an e-mail.

PetroChina Co. and China Petroleum & Chemical Corp. are due to release third-quarter results later today.

The Shanghai index has slumped 7.1 percent this year on concerns a slowing economy will hurt profit growth and the government will introduce measures to curb property-price gains.

The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., climbed 0.3 percent to $36.55 in New York. NQ Mobile Inc. extended its three-day plunge to 62 percent after Muddy Waters LLC accused it of fabricating revenue, while Sohu.com Inc. tumbled on plans to boost marketing expenses.

It's Not too Early to Spot the Gold Differences

Despite the fact that many investors are currently playing a waiting game in regards to the price of gold, MoneyShow's Jim Jubak, also of Jubak's Picks, still feels it's the right time to examine some golden differences.

It's early in the transition of gold mining companies to lower the price of gold, but I think we can already stake out a few of the important differences among the mining companies.

On this scorecard, I think Yamana Gold (AUY) is a good example of what you should be looking for in the sector, even if it may still be a little early in the transition to buy anything. (If you disagree with me on timing, I'd start with a stock such as Yamana. Yamana is a member of my long-term Jubak Picks 50 portfolio. And I do think Yamana is a good trading vehicle for this market in gold.)

First, write downs. This is an obvious difference, and all things else being equal, you'd prefer a company with less in write downs, (such as Yamana,) to one with more in write downs, such as Barrick Gold (ABX). But the absolute size of the write down is actually less important than the details. A write down is just a paper expression of the fall in the price of gold if a company is simply writing down the value of current reserves. These write downs will go back into the company accounts when gold prices rise. They are, however, important in a more lasting way if they express a more permanent impairment of assets, either through a sale, or a closing, or abandonment of a project.

Second, how aggressively the miner is moving to reduce costs. Costs in the industry will come down by themselves, as contracts for mining services, and the like, get renewed at lower prices because of the falling price of gold. Waiting for that to happen is a very passive approach. What you'd like to see here is a company attack costs now, because with the price of gold low, every bit of cost reduction is important to cash flows, and a company's need for financing, and its ability to maintain outlays, such as dividends. To give you a benchmark on the aggressive side, all-in sustaining costs at Yamana Gold fell to $950 an ounce in the second quarter, a drop of $64 an ounce or 6%. The company sees all-in sustaining costs falling to $850 an ounce in 2014.

Three, how willing the company is to sacrifice a bit of current earnings in order to reap (potentially) higher returns when gold prices climb again. Yamana Gold reported second quarter earnings per share of 7 cents, 4 cents a share below Wall Street estimates. Revenue dropped 19.6% to $430.5 million, versus the $486 million analyst consensus. The obvious cause was the fall in the price of gold, but like all gold miners right now, Yamana had a decision to make on how much to increase production and sales to make up for lower prices. The company did increase gold sales to 233,714 ounces in the quarter, but that was a relatively modest boost from the 223,279 ounces sold in the second quarter of 2012. Companies that decide to sell less gold now, so they can sell more gold later, are likely to take a short-term hit to their share price. (Yamana took a big hit yesterday on that earnings miss, falling 7.33%, or 77 cents a share.) If you have a slightly more long-term view, however, that drop in share price yesterday means you are able to buy today's production (at today's price) at a lower cost.

5 Best Safest Stocks To Invest In 2014

Four, you would like to see a pipeline of new mines-with projected costs at the low end of the scale-ready to come into initial production in the next year or so, with a reasonable production ramp taking full production out into 2014 or 2015. Projects that are further out than that have higher execution risks-the future is indeed uncertain. In the second half of 2013, Yamana has three new mines that will be ramping to full production by the end of the year. That will give Yamana a big bump in production in the second half of 2013-about a 30% increase from the first half, with full 2013 production 13% above that for 2012. I think that's a favorable production profile, with a good trade off between higher uncertainty if the ramp were further away, and the likelihood of higher gold prices if the ramp were further out. Looking out a little further, with all operating mines in full production, Yamana projects production 30% higher in 2015 from 2012.

Five, the fate of dividends in the sector is a useful indicator of a company's read on cash flows. I like it that Yamana has said that it feels its current dividend of 26 cents a share is sustainable.

Full disclosure: I don't own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund may or may not now own positions in any stock mentioned in this post. The fund did own shares of Yamana Gold as of the end of June. For a full list of the stocks in the fund as of the end of June see the fund's portfolio here.

Hot High Tech Stocks To Invest In Right Now

What a crazy year this has been for ethanol producers and the refiners responsible for blending it into gasoline. After barely hovering above zero for much of the past few years, ethanol renewable identification numbers, or RINs, shot up to $1.00 per gallon in mid-February before pulling back to half of that in March. Even Valero (NYSE: VLO  ) , a major refiner and ethanol producer, had sharp words criticizing the volatility. What the heck happened?

RINs are created with each lot of biofuels produced and act as a way for the industry to track production. They are normally sold with the corresponding amount of biofuels, but can be sold on secondary markets without a physical volume to back it up. Speculation by third parties and fear of running into the 10% ethanol blend wall in 2013 and 2014 caused prices to spike. The volatility may continue for the medium term, but investors may be able to find solace in the country's leading biodiesel producer Renewable Energy Group (NASDAQ: REGI  ) . Fool contributor Maxx Chatsko explains why in the following video.

Hot High Tech Stocks To Invest In Right Now: Hartco Income Fd(HCI.TO)

Hartco Inc., through its subsidiaries, provides information technology products, services, and solutions to private and public organizations in Canada. It operates in two segments, Franchising and Distribution, and Commercial. The Franchising and Distribution segment offers logistics, marketing, and other services to its franchise network partners in Canada. It is also involved in distribution activities; and the franchising of businesses that sell a range of IT infrastructure solutions. This segment?s franchises operate under the banners of Metafore and MicroAge. The Commercial segment, through its subsidiary, Metafore Technologies Inc., designs, supplies, installs, and supports IT infrastructure solutions. The company was founded in 2000 and is headquartered in Montreal, Canada.

Hot High Tech Stocks To Invest In Right Now: Cad It(CAD.MI)

CAD IT S.p.A. offers software solutions, as well as provides maintenance, personalization, integration, and other correlated services to banking, insurance, and private and public administration markets primarily in Italy. The company�?s Finance division provides Financial Area, an application that manages various functions connected to the negotiation, settlement, accounting, and administration of domestic and foreign financial operations. It also offers various solutions for fund allocation, tangible asset management, private banking, link-up to international markets, derivate management, general group data, credit, and forex. The company's Public Administration division provides planning and control systems, and a range of instruments and services, including local taxation, a package for the management of revenue, and voluntary/forced tax collection activities; B-Eval, a tool to monitor, measure, and evaluate the objectives and activities of a public body; and Babel e, a business intelligence platform to support public administration in activities, such as cost analysis, planning and programming, PEG/detailed plan of objectives, strategic control, staff cost control, and aim assessment. Its Industry division offers solutions for the management of various activities, such as accounting, production, management control, workflow management, quality system, designing, and supply chain management; and an ERP solution that covers various areas of company management. The company also offers outsourcing services in the areas of technical infrastructure, data protection, hardware and software maintenance, applicative software maintenance, technical and applicative monitoring, and disaster recovery. CAD IT S.p.A. was founded in 1977 and is headquartered in Verona, Italy.

Best Heal Care Stocks To Watch For 2014: China Kangda Food Company Ltd (P74.SI)

China Kangda Food Company Limited, through its subsidiaries, engages in the production, processing, sale, and distribution of food products in China. The company is involved in the production and trading of food products; breeding and sale of livestock and poultry; development and sale of rabbits; planting and sale of vegetables; testing and checking of livestock; feed processing; sale of feed products; and provision of guarantee services. It provides chilled and frozen rabbit meat; chilled and frozen chicken meat; processed foods, including instant soup, curry food, chicken based cooked products, roasted rabbit food, meatballs, de-oxygenated consumer packed chestnuts, and seafood; and other products, such as pet food, dehydrated vegetables, poultry, rabbit organs, fruits, dried chili, pig liver, and seasoning products. The company distributes its products in 26 provinces and 30 cities in the People�s Republic of China and exports to approximately 20 countries and cities, including Japan, the United Arab Emirates, and various countries in the European Union. China Kangda Food Company Limited was founded in 1992 and is headquartered in Qingdao, the People�s Republic of China.

Hot High Tech Stocks To Invest In Right Now: Sino Gas & Energy Holdings Limited(SEH.AX)

Sino Gas & Energy Holdings Limited engages in the exploration and development of gas assets in China. It holds a 100% interest in the Linxing and Sanjiaobei production sharing contracts covering an area of approximately 3,700 square kilometers in Shanxi province, North China. The company was incorporated in 2007 and is based in Beijing, China.

Hot High Tech Stocks To Invest In Right Now: SL Industries Inc. (SLI)

SL Industries, Inc., through its subsidiaries, engages in the design, manufacture, and marketing of power electronics, motion control, power protection, and specialized communication equipment in the United States and internationally. The company offers power conversion products for use in customer�s specific equipment under the SL Power Electronics, Condor, and Ault brand names to the original equipment manufacturers (OEMs) of medical, industrial/instrumentation, military, and information technology equipment. It also provides custom power conditioning and distribution units for custom electrical subsystems for OEMs of medical imaging, medical treatment, military aerospace, semiconductor, solar, and advanced simulation systems under the Teal brand name; and power quality products, including three-phase AC reactors, DC link chokes, and a series of harmonic, RFI/EMI, and motor protection filters used in industrial plants, natural resource harvesting sites and facilities, a nd commercial buildings to protect equipment from power surges under the MTE brand name. In addition, the company offers high power density precision motors that are used in military and commercial aerospace, oil and gas, and medical and industrial product applications; and communication and power protection products/systems that are used to protect electric utility transmission lines and apparatus, as well as products and systems used in rail and highway industries. SL Industries, Inc. was founded in 1956 and is based in Mount Laurel, New Jersey.

Hot High Tech Stocks To Invest In Right Now: Hancock Holding Company(HBHC)

Hancock Holding Company, a financial holding company, provides various banking and financial services in south Mississippi, Louisiana, South Alabama, and Florida. The company accepts various deposit products that include non-interest bearing demand deposits, NOW account deposits, money market deposits, savings deposits, and time deposits. Its loan portfolio comprises provision of commercial, consumer, commercial leasing, and real estate loans to consumers and small and middle market businesses. Hancock also offers various trust services that include operating as an executor, administrator, or guardian in administering estates; provision of investment custodial services for individuals, businesses, and charitable and religious organizations, as well as investment management services on an agency basis; and trustee services for pension plans, profit sharing plans, corporate and municipal bond issues, living trusts, life insurance trusts, and various other types of trusts cre ated for individuals, businesses, and charitable and religious organizations. In addition, it provides consumer financing services; owns, manages, and maintains real property; offers general insurance agency services; holds investment securities; markets credit life insurance; and engages in discount investment brokerage services, as well as owns approximately 3,700 acres of timber land in Hancock County, Mississippi. The company operates 182 banking and financial services offices and 161 automated teller machines. Hancock Holding Company was founded in 1899 and is headquartered in Gulfport, Mississippi.

Advisors' Opinion:

• [By Eric Volkman]

  Hancock Holding (NASDAQ: HBHC  ) is resolutely sticking to its longtime dividend policy. Matching the same common stock payout it's distributed since September 2006, the financial services concern has declared a distribution of $0.24 per share. This is to be paid on September 16 to shareholders of record as of September 5.

Hot High Tech Stocks To Invest In Right Now: Hercules Technology Growth Capital Inc (HTGC)

Hercules Technology Growth Capital, Inc. (HTGC), incorporated on December 18, 2003, is an internally managed, non-diversified closed-end investment company. The Company is a specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and clean-technology industries at all stages of development. The Company's investment objective is to maximize the Company's portfolio total return by generating current income from its debt investments and capital appreciation from its equity-related investments. The Company invests primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. The Company also makes investments in qualifying small businesses through two wholly-owned, small business investment company (SBIC) subsidiaries, Hercules Technology II, L.P. (HT II) and Hercules Technology III, L.P. (HT III).

The Company focuses its investments in companies active in the technology industry sub-sectors characterized by products or services that requires advanced technologies, including, but not limited to, computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure or services, Internet consumer and business services, telecommunications, telecommunications equipment, renewable or alternative energy, media and life science. Within the life science sub-sector, the Company generally focuses on medical devices, bio-pharmaceutical, drug discovery, drug delivery, health care services and information systems companies. Within the clean technology sub-sector, the Company focuses on sustainable and renewable energy technologies and energy efficiency and monitoring technologies. The Company refers to all of these companies as technology-related companies and intend, under normal circumstances, to invest at least 80% of the value of its assets in such businesses. Advisors' Opinion:

• [By Lawrence Meyers]

  Business development companies like Hercules Technology Growth Capital (HTGC) invest money into middle-market companies that are experiencing fast growth.� Often, these investments take the form of mezzanine debt paying interest in the teens, and some warrants.� Hercules likes to focus more on senior secured revolvers and term loans to refinance existing debt, and will even take second-liens.� It has more attractive upside with its investments than other BDCs because it focuses on tech, energy tech, healthcare, life sciences and business services — all of which can fetch higher multiples upon exit.� It pays out a sturdy 7.3% dividend.

• [By Chad Tracy]

  StreetAuthority expert analyst Amy Calistri has had incredible success with BDCs in her Daily Paycheck portfolio. When she recommended Hercules Technology (NYSE: HTGC) in February 2010, the stock was trading for a little more than $10 a share.

Hot High Tech Stocks To Invest In Right Now: ACCSYS TECHNOLOGIES ORD EUR0.01(AXS.L)

Accsys Technologies PLC, together with its subsidiaries, engages in the development and commercialization of various technologies for the manufacture of Accoya branded acetylated wood in the United Kingdom. It also engages in the ownership and exploitation of intellectual property rights relating to the acetylation of cellulose and the production of acetic anhydride; provision of technical and engineering services to licensees; technical development of fiber board opportunities; manufacture of Accoya, the acetylated wood; and provision of sales, marketing, and technical services. The company is based in London, the United Kingdom.

Vanguard hits reset button on its managed-payout funds

The Vanguard Group Inc. is giving its managed-payout strategy a fresh start.

The indexing giant last week said that it will merge its three managed-payout funds, which are designed to build the principal investment along with inflation while making monthly payouts, into a single fund, in part to simplify the strategy for investors.

It also will give the strategy a fresh start with a new target after five years of struggling to meet its goal of keeping up with inflation.

Vanguard is eliminating the $110 million Vanguard Managed Payout Growth Focus Fund (VPGFX), which targets a 3% distribution, and the $804 million Vanguard Managed Payout Distribution Focus Fund (VPDFX), which targets a 7% distribution.

10 Best Stocks To Invest In 2014

Both funds will be merged into the $531 million Vanguard Managed Payout Growth and Distribution Fund (VPGDX), which targets a 5% distribution.

After the mergers, it will be renamed the Vanguard Managed Payout Fund, and its target distribution will be lowered to 4%, which puts it more in sync with the so-called 4% rule for retirement spending.

The lowered distribution target also gives the fund a better chance for success than its predecessors had.

All three of Vanguard's managed-payout funds have struggled to keep payouts in line with inflation over their five-plus years of life. A big part of that has to do with the very unlucky timing of the funds' launch, which came in the spring of 2008.

“We got hit right out of the gates with the worst-case scenario,” said John Ameriks, head of active equity at Vanguard, referring to the financial crisis.

The payouts on all three funds still haven't recovered from the market's collapse.

The Managed Payout Growth Focus Fund, for example, had a monthly payout of $67 in June 2008 but paid out just $57 this past June, a 15% decrease, according to the Independent Adviser for Vanguard Investors newsletter.

The new 4% targeted distribution rate is a reflection of Vanguard's outlook for interest rates, which it expects to remain low, Mr. Ameriks said.

“We haven't set ourselves a hugely easier task at 4%,” he said. “The objective is achievable, but we're still going to have to add a little bit of value to achieve it.”

If the newly merged fund is able to keep up with inflation, it could help financial advisers in their search for retirement income options,! said Josh Charlson, a fund analyst at Morningstar Inc.

“It's a good idea,” he said. “It could be one piece of a possible solution for generating the income needed in retirement.”

European Commission OKs ICE Takeover of NYSE Euronext

IntercontinentalExchange's (NYSE: ICE  ) impending acquisition of NYSE Euronext (NYSE: NYX  ) doesn't pose enough of a threat to competition to warrant concern, at least according to the European Commission. As a result, the European Union's executive branch has approved the proposed transaction, saying that it does not "raise competition concerns as NYX and ICE are not direct competitors in the markets concerned and would continue to face competition from a number of other competitors."

Both companies professed happiness at the ruling in separate press releases. IntercontinentalExchange quoted Chairman and CEO Jeffrey Sprecher as saying that "we welcome the decision by the European Commission."

NYSE Euronext CEO Duncan Niederauer opined that "this is obviously a significant step forward in completing our compelling combination, and we now look forward to working with our regulators to obtain the final approvals necessary to close the transaction."

The deal is still subject to final approval from the Securities and Exchange Commission and other national financial regulatory bodies.

Why Terex Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Terex  (NYSE: TEX  ) were collapsing today, falling as much as 16% after cutting its forecast for the quarter and full year.

So what: The construction-equipment maker appears to be falling in line with the industry, which is facing a lower demand across the market as the weak global economy has forced a delay in larger projects. Terex now says it expects earnings of just $0.50 to $0.60 a share, well below the analyst consensus at $0.82. In particular, management blamed weakness in the construction and material handling and port solutions segments. For 2013, it reduced EPS guidance to $1.90-$2.10 from a former range of $2.40-$2.70.

Now what: Like others in its industry, Terex said North American sales have improved but the European market continues to be a problem. While a drop in share prices seems warranted after such an announcement, there seems to be no long-term concerns here. Industry leaders like Caterpillar have made similar predictions, and it's fair to expect a recovery as the European economy gets better. Shareholders may have to wait longer than they wanted, but Terex and its peers should eventually bounce back.

Top Dividend Stocks To Watch For 2014

Want more on Terex? Add the company to your Watchlist by clicking right here.

This Is the Key to Making Money in Emerging Markets

This year marked a raucous end to one of the greatest economic booms in the last 100 years.

It happened in June, when more than 1 million protesters took to the streets in one of their country's largest cities.

At the time, they raised ire about steep increases in crime, inflation, and political corruption. They stomped the pavement over ill-gotten decisions to spend taxpayer money on posh football stadiums for the World Cup instead of schools, hospitals, and much-needed infrastructure.

This was the loudest uproar over the country's stumbling economy.

As consumption slows, consumer prices increase, and taxpayers continue to protest, we see an important lesson unfold from this country about how to invest in emerging markets.

In fact, it highlights the one simple strategy that can make you a lot of money...

Investing in Emerging Markets: Brazil's Rise and Fall

The protest I described took place in Brazil, which for nearly two decades enjoyed an economy that was nothing short of miraculous.

After an abrupt end to runaway inflation in 1994, a new currency, and liberalized trade laws, Brazil witnessed a massive influx of credit and consumption driven by a boom in commodity prices. It led to more than 25 million Brazilians rising from poverty.

The nation thrived under President Luiz Inácio Lula da Silva in the early 2000s, survived the recent global economic downturn with barely a scratch, and grew by 7.5% in 2010, the highest growth rate in 25 years.

#symbols-c4ca4238a0b923820dcc509a6f75849b { width: 253px; font-family: Arial; font-size: 11px; color: #333333; } #symbols-c4ca4238a0b923820dcc509a6f75849b .header { float: left; font-family: Georgia; font-size: 14px; color: #456626; line-height: 14px; padding-left: 14px; font-weight: bold; } #symbols-c4ca4238a0b923820dcc509a6f75849b .date { float: right; padding-right: 32px; font-weight: bold; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart { font-family: Georgia; font-size: 12px; color: #456626; width: 253px; height: 135px; line-height: 135px; text-align: center; } #symbols-c4ca4238a0b923820dcc509a6f75849b ul { list-style: none; padding: 0; margin: 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b li { padding: 0; margin: 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b li:nth-child(odd) { background-color: #eeebe6; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .name { float: left; width: 100px; overflow: hidden; padding: 3px; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .price { float: left; width: 55px; overflow: hidden; padding: 3px; text-align: right; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item .percent { float: left; width: 80px; overflow: hidden; padding: 3px; text-align: right; } #symbols-c4ca4238a0b923820dcc509a6f75849b .symbols-item.active { background-color: #456626; color: #ffffff; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart-container { width: 253px; height: 135px; padding: 0 0 5px 0; } #symbols-c4ca4238a0b923820dcc509a6f75849b .chart-container img { width: 253px; height: 135px; max-width: none; } .clear { clear: both; } iShares MSCI Brazil Capped Index Fund NYSE: EWZ Oct 04 loading chart... Price: 48.53 | Ch: 0.13 (0.3%)

Brazil shined as one of the most important emerging economies, coined in the BRIC acronym by a Goldman Sachs economist in 2001 with Russia, India, and China.

The nation's rise was so meteoric that the world united to award it the 2014 World Cup and the 2016 Olympics, the first South American nation to host the latter. The two events would showcase Brazil's arrival on the global economic stage.

But today, in just two short years, the economy is struggling. Brazil's stock market has fallen by 23% since Jan. 1, 2011. Investor capital is fleeing the country.

Slammed by rising inflation, a Byzantine tax code, and an inability to provide essential services to its people, Brazil became a victim of its own success and is now reeling from its boom years.

In 2012, the Brazilian economy grew at an anemic 0.9%. This year, its stock market is down more than 15%. Many have said that the boom years are dead, and now the country will suffer from its inability to reform the problems that plague its economy the most.

What's the problem - and what does it teach us about how to invest in emerging markets?

How to Invest in Emerging Markets: Play the Policies

Over the last 20 years, Brazil has done very little to reform its government.

In Brazil, companies now face the highest tax burdens of anywhere else on the globe in terms of its workforce. According to various reports, payroll taxes add an additional 58% to company salaries. Meanwhile, public sector pensions have reached unsustainable levels, as the average worker can obtain a 70% share of their final salary at the age of 54.

Total taxes have reached 36% of gross domestic product (GDP), the highest level in the emerging world and comparable to the basket-case economy of Argentina just to the south. And despite the downturn and rising entitlements, the government will not be able to raise taxes, despite desperate needs for hospital, schools, and infrastructure spending.

Meanwhile, inflation sits at 6%, and the cost of goods is rising steeply. According to The New York Times, a Samsung Galaxy S4 phone retailing at $615 in the United States is twice the cost in Brazil. A cheese pizza costs $30, and a Big Mac requires that the average person in San Paulo work nearly four times the amount of the average person in Chicago to afford it.

But worst of all, Brazil, which presents some of the best agricultural opportunities in the world, fails to properly allocate resources to the required infrastructure to help the nation thrive. The nation is the third-largest exporter of agricultural products, but infrastructure problems are driving up costs substantially.

Brazil only spends 1.5% of GDP on infrastructure like roads, ports, and railways, compared to a global mean of 3.8%. This has significant impact on various sectors, but agriculture is the biggest victim.

In Mato Grosso, a principal farming district in central Brazil, farmers spend 25% of their gross sales on shipping soy to ports, whereas the average Iowa soy farmer pays 9% to 10%.

Simply put, the country is not especially favorable to investment for its own taxpayers or for investors abroad until reforms are met.

This is part of knowing how to invest in emerging markets - looking for policies that support reduced taxation, increased transparency in government, and greater financial freedom.

How to Invest in Emerging Markets: The Best Strategy

Money Morning has discovered something every global investor should consider when evaluating foreign investment opportunities. We call it the "Liberty Investment principle."

This principle uses two tools to measure the economic liberty of a nation.

First, the Heritage Foundation Index of Economic Freedom helps investors understand the levels of taxation and government participation in the nation's market. The more freedoms granted to investors and businesses, the better.

The index also provides a scaled raw score to rank 185 nations on their economic freedoms, including property rights, investing rights, and taxation levels on businesses.

Money Morning's Martin Hutchinson first introduced the Liberty Investment principle to readers in 2012.

Hutchinson says that "each country should also have a high level of integrity - meaning they follow the rule of law. A good score on Transparency International's Corruption Perceptions Index is a good measure of this."

In both scenarios, Brazil drastically fails both tests. Brazil ranks 69th in transparency and 99th in economic freedom. So, it's no surprise that the country is struggling today.

Using this principle, investors have other countries to consider when hunting for how to invest overseas.

In South America, investors should instead look to Chile (currently the 6th freest economy, 20th most transparent), Uruguay (36th in freedom, 20th in transparency), and even Colombia (37th in freedom, 94th in transparency), the latter having made a significant amount of progress in the last decade. Meanwhile, investors should avoid Argentina (160th in economic freedom, 102nd in transparency).

Moving forward, Brazil will require a significant amount of reform before you should consider investing in the country's economy. Reforms to taxation, governance, and infrastructure spending are the only way that Brazil will emerge from its current quagmire and once again present opportunities to global investors that instill trust and long-term commitments to capital.

Wondering how to invest in Chile, one of the best emerging markets? We have three stocks for you.

Investing: Some new funds worth considering

As long as you're throwing out the bums in Congress — you are, right? — why not throw out some of your old, poorly performing mutual funds? Once you've done that, you can look at new funds, some of which are extremely promising.

Most mutual funds preach the virtues of long-term investing, despite the fact that most actively managed funds trade stocks at a frenetic rate. The average large-company blend fund, for example, replaces about 64% of its portfolio each year, according to Morningstar.

STOCKS: Can nothing stop the 'Teflon Bull' market?

But there's no particular need to hang on to a badly performing actively managed fund. Typically, a fund company judges a manager on his three-year record. There's no reason you shouldn't, either.

At least by the three-year test, there are plenty of large, poorly performing funds. The three funds with assets of more than $1 billion that have lagged their peers the past three years:

• American Funds Investment Company of America, $49 billion in assets, lagging 66% of its peers.

• Davis NY Venture, $11 billion in assets, lagging 81% of its peers.

• Hartford Capital Appreciation, $5.6 billion in assets, lagging 74% of its peers.

Other big three-year laggards include Fidelity Dividend Growth, LongLeaf Partners and Selected American Shares — run by the same team that runs Davis NY Venture, not coincidentally.

None of these funds got big by being dummies: All have had substantial periods of outperformance. But waiting for them to return to glory could be a long wait. In some cases, their own size may be an impediment; it can take longer to unwind big positions that managers no longer like, and longer to accumulate significant stakes in funds that managers do like.

In many cases, you can simply find a fund with a better record. For example, most funds that follow the Standard & Poor's 500 stock index have clobbered the average large-company blend fund, according to Morningstar. These funds often ! have much lower expenses than the average actively managed fund, which is an enormous edge. The bulk of your portfolio should be in low-cost funds that track a broad-based index, such as the S&P 500 or the Russell 3000, which tracks nearly the entire universe of U.S. stocks, large and small.

The fund industry is prone to rolling out specialized funds in red-hot areas, and you should avoid them. They usually lead to woe. If you're looking for a new, actively managed fund with the potential to outperform its peers, try to confine yourself to new funds run by managers with proven track records. One recent example: Akre Focus Fund (ticker: AKREX), run by Charles Akre, former manager of the top-performing FBR Focus Fund. Since the fund started in August 2009, it has gained an average 18.28% a year, and an average 21.73% a year the past three years, beating 97% of its peers.

Akre Focus hasn't gone unnoticed: It has about $1.7 billion in assets — not unmanageable, but not tiny, either. A few new funds run by seasoned managers:

• RiverNorth/Oaktree High Income (RNOTX), geared for income investors. The fund puts about 25% of its assets in closed-end funds, which are funds that trade on the stock exchange, often for substantially less than the value of their holdings. The rest is invested in high-yield and bank-loan bonds, says Jeffrey DeMaso, director of research at Adviser Investments in Newton, Mass. The RiverNorth section of the fund is run by Patrick Galley and Stephen O'Neill, both formerly of Bank of America; Sheldon Stone, co-manager of Oaktree's section, worked at TCW's high-yield bond department for a decade. "They cut their teeth being value investors in high-yield, convertible, and distressed bonds, DeMaso says.

• Seafarer Overseas Growth & Income (SFGIX). This emerging markets fund is managed by Andrew Foster, who comes from the hugely successful Matthews Asian Growth & Income fund. David Snowball, proprietor of The Mutual Fund Observer (www.mutualfund! observer.! com), isn't easily impressed, but he's very impressed with Seafarer, an emerging markets fund. "The fund can invest in any area of the world, and it can invest in companies in developed markets that benefit from emerging markets," Snowball says. If you're looking for an area where you can find real value, emerging markets is probably it. Even though they have rebounded, many emerging markets still sell at historically low levels, relative to earnings.

• Oakseed Opportunity Fund (SEEDX), a large-company growth fund started Dec. 31 by Greg Jackson, formerly co-manager of Oakmark Global Fund and John Park, formerly manager of Columbia Acorn Select. Both have been private-equity investors, and both managers have substantial investments in the fund. "They're investing their families' fortunes and their personal fortunes in the fund," Snowball says.

• Beck, Mack & Oliver Partners (BMPEX), an all-cap fund with a large-cap tilt. Beck, Mack & Oliver was formed in the depths of the Depression, and their main aim has been keeping wealthy people wealthy. They look to buy shares of quality companies at a discount, even if they have to wait years to find the right buying opportunity. Manager Zachary Wydra comes from Water Street Capital and Graham Partners, a private-equity firm.

• Riverpark Strategic Income, run by David Sherman of Cohanzick Management. This is an income fund for people who are worried about the bond market, as Snowball is. "I don't imagine that putting money in a straight-up bond fund will do you any good between now and when you die," Snowball says. The fund invests in a variety of short and intermediate-term securities and aims for reasonable returns with a minimum of volatility.

Hot Penny Companies To Watch In Right Now

Jumping into any new fund entails risk, and selling old funds — even stinky ones — can trigger capital gains taxes. Study any new fund car! efully. B! ut if you're looking to make a change in your actively managed funds, these all deserve a look.

Beige Book: Shutdown Takes Toll on Growth in Some Areas

Best Dividend Stocks To Invest In Right Now

Nam Y. Huh/AP WASHINGTON -- The Federal Reserve said economic growth slowed in a few key regions of the United States from September through early October, as businesses grew worried about a budget impasse that led to a partial government shutdown. Overall growth continued at a modest to moderate pace, according to the Fed survey released Wednesday. Eight of the Fed's 12 banking districts reported the same growth rate reported in August through early September. But four districts -- Philadelphia, Richmond, Chicago and Kansas City -- reported that growth had slowed. Businesses around the country remained optimistic about the future and consumer spending continued to increase, helped by strong auto sales. But many businesses noted increased uncertainty because of the partial federal shutdown, which began on Oct. 1, and a looming deadline to raise federal borrowing limit. Boston, in particular, reported that the tourism industry was worried about the impact of a prolonged shutdown. And several Districts reported that businesses were cautious about hiring. Senate leaders announced Wednesday that they had an agreement to avert a threatened Treasury default and reopen the government after the 16-day shutdown. The House was likely to approve the measure, too, leading many to anticipate passage in both chambers before the end of the day. The Fed's survey, known as the beige book, will be used by central bank policymakers in their next meeting on Oct. 29-30. Economists believe the Fed maintain its $85-billion-a-month in bond purchases to offset the impact of the shutdown.

Time to Buy the Refiners, Howard Weil Says

The refiners have been beat up, they’ve been thrown out, but they’re not down–at least not today.

REUTERS

Shares of refining companies are on the move today after brokerage firm Howard Weil released a positive note on the sector today. Analysts Blake Fernandez and Richard Roberts explain their reasons for optimism:

We have patiently waited for equity prices to fully digest downward 3Q revisions. Initial indications were that numbers needed to move lower, but the magnitude has taken both buy side and sell side by surprise. The Chevron (CVX) interim update citing weak downstream performance in 3Q should be the final communication the Street needs to fully digest a weak quarter…

After being on the sidelines for the bulk of this year, we feel the relative underperformance in the refining group provides an opportunity to start nibbling. Those feeling they had missed their opportunity to participate in the US energy renaissance may have another shot.

Fernandez and Roberts singled out three stocks for upgrades. Holly and Valero were upgraded to Sector Outperform from Sector Perform, while Marathon was made a Focus Stock.

Shares of Holly (HFC) have gained 1.9% to $43.29 at 10:43 a.m., shares of Marathon (MPC) have risen 1.8% to $68.41, and shares of Valero Energy (VLO) have ticked up 0.6% to $36.77. Tesoro (TSO) has dropped 0.8% to $45.21.

Clean Energy Investment Slashed in Third Quarter

Global investment in the third quarter fell 14% sequentially to $49.5 billion according to Bloomberg New Energy Finance data. The decline virtually guarantees that annual investment in renewable energy will decline from spending of $281 billion in 2012.

Spending in the U.S. dropped 41% from the second quarter of the year to just $5.5 billion, leading to an overall year-over-year decline of 20%. Cheap natural gas has diverted U.S. investment and lower subsidies in Germany and Spain coupled with a decline in Chinese spending on wind power are the main causes for the decline.

One bit of good news is that the installation of new solar photovoltaic systems is on track to set a record of 36,700 megawatts of new capacity in 2013. The rise in capacity comes at the expense of the solar PV industry where ever-falling prices offset the increases in new capacity.

Solar makers like First Solar Inc. (NASDAQ: FSLR) and SunPower Corp. (NASDAQ: SPWR) have come to depend on their project businesses to help offset the declining costs of solar modules. SolarCity Corp. (NASDAQ: SCTY) has recently made two acquisitions that increase their vertical integration in the solar installation market. For the moment at least, going vertical seems to be the path to whatever profits exist in the solar market.

Best Safest Stocks To Own For 2014

Spanish bonds have declined quite sharply since the past several days and the previous session was no exception either, as spread between the 10-year Spanish yields relative to benchmark German bunds widened the most since the Euro was created. The yield spread against 10-year German bunds widened to more than 500 basis points, a record high, as concerns grew that Spain�� lenders will need additional financial support to weather Europe�� debt crisis. Meanwhile, global risk aversion is pushing the German bunds to a record low, which in turn is adding more pressure on the yield spread to widen.

As long as the ongoing banking concerns in Spain persists, Spanish government securities are likely to continue weakening further while demand for the safest assets such as German bunds would pick up. This in turn could lead to further increase in spread between the securities of Euro zone�� largest and 4th largest economy.

The below graph shows the spread of Spanish 10-year bond over German bund for the last 3 months

Best Safest Stocks To Own For 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 Robert Eberhard]

  I like to think that I've shifted my mentality a bit over the past 18 months. I feel more like an investor than ever before, and plan on holding onto many of my investments for a long time. Once I make an investment decision, I try to avoid thinking about other opportunities that I let slip away. Alas, I am human, and my choice of Under Armour (NYSE: UA  ) last year over a group of other qualified candidates has had me thinking recently about the way I make investment decisions. Instead of dwelling on the missed gains, however, I decided to learn from the decision and adjust my thinking going forward.

• [By WALLSTCHEATSHEET.COM]

  Under Armour provides athletic apparel, footwear, and accessories to a growing health and wellness, athletic, and fitness enthusiast population around the world. The stock has been on a powerful move towards higher prices that has led to it trading at all-time highs. Earnings and revenue figures have increased over most of the last four quarters which has led to excited investors. Relative to its peers and sector, Under Armour has led in year-to-date performance by a wide margin. Look for Under Armour to OUTPERFORM.

• [By Alex Planes]

  Dick's interactive "store within a store" concept gives a unique and distinct feel to each department. When you're looking for golf stuff, for example you can visit a dedicated Golf Pro Shop. It's a superior in-store experience compared to big-box competitors, and some of the company's other brand partnerships also provide Dick's with the unique opportunity to offer exclusive product to their customers. Nike (NYSE: NKE  ) and Under Armour (NYSE: UA  ) both take advantage of having their own block of space within Dick's locations. This not only provides customers the opportunity to really evaluate the relative worth of each brand across a wide range of products, but it also gives Dick's a way to upsell its status-conscious buyers on the latest $50 compression shirt or $150 spring-loaded pair of shoes.
  
  Dick's also rose to the top of the sporting-goods list because of its convenient locations, competitive prices and focused approach on reaching out to digital consumers through social media and apps. Dick's app has a built-in GPS that automatically helps consumers find the nearest store. You'd think this would be the first thing built into any retailer's mobile apps, but a surprising number of companies overlook or marginalize such a simple function.

• [By Jon C. Ogg]

  Questcor Pharmaceuticals Inc. (NASDAQ: QCOR) and Under Armour Inc. (NYSE: UA) may seem to have little to nothing in common on the surface. Questcor is in the pharmaceutical business, while Under Armour is the sports apparel and casual wear business. The world has now seen that Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) is being acquired for some $10.4 billion. The commonality between Questcor and Under Armour is that they were featured on the same recent high growth list of public companies expected to double their revenues over the next two to four years.

Best Safest Stocks To Own For 2014: 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 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.

• [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.

10 Best Penny Stocks To Watch For 2014: 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 Selena Maranjian]

  Brazilian oil giant Petrobras (NYSE: PBR  ) plunged 37%, burdened by significant debt. Bulls have been heartened by rising production numbers as some offshore rigs are brought back into service, and some are hopeful that solid car sales in Brazil will boost Petrobras' business. But others point out the Brazilian government's heavy influence on the company's fortunes.

Best Safest Stocks To Own For 2014: 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.

Lincoln takes on Lexus in new MKZ ads

"Luxury uncovered" is the tagline of Lincoln's new ad campaign that aims to parlay the decent early sales of the MKZ into greater awareness of Ford's struggling luxury brand.

The MKZ is now Lincoln's best-known model, said Andrew Frick, Lincoln group marketing manager.

"Leading with the Lincoln brand as a whole right now wouldn't get us as far as leading with key products," Frick said. "When we lead with nameplates (models) we have better recognition."

The ads also have prospective buyers comparing MKZ and a Lexus ES and emphasize that an MKZ hybrid costs no more than a gas-engine powertrain.

Though MKZ sales were up 12% in September from a year earlier — before the current redesigned model was available — Lincoln's sales for the first nine months of 2013 are down 6%.

The new print, TV and social media campaign begins today and will run through the fourth quarter. Lincoln officials would not say how much they are spending.

Marketing executives are hoping social media users will glom onto the #luxuryuncovered hashtag and use it to talk about the brand. Up to 80% of shoppers research new cars online, said David Rivers, Lincoln marketing communications manager.

Using hashtags has become a regular practice for many companies, said Jon Pearce, chief creative officer of the Hudson Rouge ad agency, which created the latest promotions.

There are four 30-second TV spots initially, three focusing on MKZ, particularly the hybrid, and the fourth touting Lincoln's success in winning a J.D. Power award based on customer satisfaction.

The spots will air during prime-time programming such as football, "The Amazing Race" and "Dancing with the Stars."

Frick said the new campaign grew out of data on MKZ owners and their preferences. For example, the long front-to-back glass roof is chosen by 60% of those who buy or lease an MKZ.

The popularity of the MKZ hybrid prompted Ford to increase its share of production from 20% to 40% of the mix for the 2014 mode! l arriving in dealerships now.

Lincoln advertised during the last Super Bowl, but "we have no plan to be in the Super Bowl this year," Frick said.

Rivers said Lincoln got a lot of publicity and website traffic from two Super Bowl spots, but supply and quality issues delayed the car's launch so the dealers did not have ample stocks of MKZs until the spring.

Lincoln's next completely new model is the MKC compact crossover, but its launch has been delayed. None of the officials available said when the MKC might go on sale.

How the Adobe hack could fuel next wave of cybe…

SEATTLE – Adobe has taken several steps to calm concerns among its corporate users about the loss of customer account data and critical source code to hackers.

The company has begun advising enterprise customers that Adobe product users will be required to change their account password at their next login attempt.

The breach does not affect users of Adobe Creative Cloud or Digital Publishing Suite -- other than a password reset.

Adobe will also be sending notification letters over the next two weeks to customers whose individual accounts were breached.

The fact that it took an exposé by krebsonsecurity.com to prompt Adobe to alert customers of this devastating breach is not surprising, says Peter Toren, a former federal prosecutor of computer crimes, who is now with Weisbrod Matteis & Copley.

Most states have enacted data loss disclosure laws modeled after the pioneering California statute that was the first to require companies to notify customers, should any personal data held by the business turn up lost or stolen.

But adherence to such laws has been uneven. "As this highlights, data loss disclosure laws are not nearly as effective in protecting consumers as they should or need to be," Toren says. "Presently, there is no federal law addressing this issue and the state laws that do exist are patchwork of different standards and requirements."

Despite the law, there remains minimal incentive for companies to do the right thing. "Many companies believe that it is worth the risk of not reporting since reporting could mean a loss of consumer confidence in the brand," Toren says. "Until there is a federal law with real penalties for not reporting, these type of incidents are likely to continue."

Meanwhile, corporations would be wise to brace for a fresh wave cybercriminal activity that is likely to spin out of the Adobe breach, security experts say.

Now out in the Internet wild are personal and financial data for 2.9 million more individual! s -- Adobe product users. Perhaps more worrisome, source code for Adobe Acrobat PDF reader and Adobe ColdFusion web app developer's tool has begun circulating.

Concern is brewing that the bad guys seem certain to use knowledge of Acrobat source code to intensify already widespread attacks revolving around corrupted PDFs.

"Having the source code to an application is like having the blueprints to a product," says George Tubin, senior security strategist at Trusteer, an IBM company, "having access to it expedites the vulnerability identification process -- leading to more weaknesses being identified and used for cybercrime."

Dave Jevans, CTO and founder of cloud security vendor Marble Security, concurs. "It is 100 times easier to find new exploits if you have the source code, than if you have to disassemble the binary," Jevans says. "Plus you may discover exploits on other platforms, like the Mac."

The fact that ColdFusion's source code is out in the open is particularly ominous. ColdFusion supports the new HTML5 standard being used for the new generation of mobile apps, and it is widely used in building websites, business apps and mobile apps for corporate use.

Top Warren Buffett Companies To Buy For 2014

"Now that attackers have access to the ColdFusion source code they can much more easily find exploits and attack enterprises through their own web apps and mobile apps," Jevans says. "This could create the next wave of advanced attacks against enterprises."

Tubin points out that the bad guys have already started using ColdFusion vulnerabilities to deliver malicious content to computing devices.

By reverse engineering ColdFusion's code, bad guys are likely to find fresh security holes, that "can give hackers full access to the web server, all files on the server and admin rights to the server," Tubin observes. "Further, this type of compromise can be used as! a steppi! ng stone into the broader corporate network in an APT (advanced persistent threat) type of attack."

Blue Calypso Expands IP Portfolio by Purchasing Mobile Gamification Technology (OTCBB:BCYP)

Blue Calypso, Inc. (BCYP)

Today, BCYP surged (+1.17%) up +0.002 at $.173 with  631,330 shares in play thus far (ref. google finance Delayed: 2:29PM EDT September 26, 2013).

Blue Calypso, Inc. previously increased its intellectual property portfolio by purchasing proprietary mobile gamification technology in an all-stock transaction for approximately $150,000.

Blue Calypso has already applied for one new patent based on the integration of this technology with its own platform. Management expects to further develop the intellectual property purchased as well as file a family of patent applications. This new family of patents combined with Blue Calypso's existing patents, creates an unprecedented IP portfolio in the social media space.

Blue Calypso, Inc. (BCYP) 5 day chart:

SEC votes on executive-median pay gap rule

In a 3-2 vote, the Securities and Exchange Commission on Wednesday agreed to release a proposed rule that would require public companies to disclose the ratio of their chief executive's pay to the median pay level of its employees.

At his first open meeting since being confirmed by the Senate, commission member Michael Piwowar blasted the rule, saying the SEC should not have even considered it.

“The commission should not be spending any of its limited resources on any rule making that unambiguously harms investors, negatively affects competition, promotes inefficiencies and restricts capital formation,” he said.

The objective of the pay ratio, Mr. Piwowar said, is “to shame CEOs.”

“But the shame from this rule should not be put upon CEOs; it should be put upon the five of us who will be voting on this proposal today,” Mr. Piwowar said. “Shame on us for putting special interests ahead of investors. Shame on us for letting special interests distract us from our core mission. Shame on us for surrendering our rule-making agenda to those special interests.”

The Dodd-Frank law requires the SEC to amend its existing company disclosure rules to include the executive/employee pay ratio. Supporters of the rule, such as the AFL-CIO, argue that it would illuminate wide compensation disparities in the American workplace.

The SEC voted 3-2 to approve the release of the proposal for comment.

“I hope that in future rule makings the commission will hold itself to higher standards with respect to the process by which we deliberate,” Mr. Piwowar said.