The average dollar invested in an actively managed equity mutual fund over the past one, three and five years outperformed its benchmark index through June 30, according to a new report released by Standard & Poor’s on Thursday.

The so-called Midyear 2009 S&P Indices Versus Active Funds Scorecard, or SPIVA, compared the returns of active funds vs. S&P benchmarks in a variety of different asset classes. The data takes into account survivorship bias, which eliminates funds that go under or merge into other funds.

Historically, the results of the SPIVA analyses heavily favor the indexes. That’s what happened with the last report, covering year-end 2008, when indexes won in a landslide.

But the Midyear 2009 report contains a surprise. While the average actively managed funds trailed their benchmarks on an equal-weighted basis, when measured on an

Legg Mason Partners Capital A (SCCAX) seeks capital appreciation. It is non-diversified.

The fund invests primarily in equity securities of US firms ranging from small capitalization to large companies. It may also invest in equities of foreign issuers, as well as equity-linked and fixed-income securities.

Google Inc. (GOOG), Travelers Co.s Inc. (TRV) and Juniper Networks Inc. (JNPR) are among the fund’s key holdings.

Legg Mason Partners Mid Cap Core A (SBMAX) was incepted in September 1998. The investment seeks long-term growth of capital.

The fund invests in equity securities of medium-sized companies within the range of components of the S&P MidCap 400 index or the Russell Midcap index at the time of purchase. It follows a disciplined core investment strategy, combining in-depth fundamental and quantitative analysis.

The fund has been managed by Brian M. Angerame since May 2005. Angerame has over 14

If the consensus earnings estimates coming out of Standard & Poor’s and “the Street” (via Thompson Reuters) are realistic, then it looks pretty good for a stable to rising market value.  We say value instead of prices, because price and value don’t always coincide.

At 923 the S&P 500 is about 12 times the 2010 $74.10 forecast for the S&P 500 operating earnings by Standard and Poor’s, or the $74.48 forecast by “the Street” according to Thompson Reuters.  Barron’s reports a Capital IQ survey of six strategists’ forecast of $68.45 for 2010, making today’s 923 index price about 13.5 times 2010 operating earnings.

Actual S&P 500 operating earnings in 2007 and 2008 were $82.54 and $49.51.  That puts $74 at almost 90% of the 2007 earnings level — quite an amazing and surprising expected accomplishment given all we’ve been through.

S&P forecasts $55.61 operating earnings in 2009 for the S&P 500, while “the

ProFunds Technology UltraSector (TEPIX) was incepted in June 2000. The investment seeks daily investment results that correspond to 150% of the daily performance of the Dow Jones U.S. Technology Sector index.

The fund may invest in equity caps, collars and floors, swaps, American Depositary Receipts and options on securities and securities indices. It routinely employs leveraged investment techniques and may use sampling techniques in seeking its investment objective. The fund is non-diversified.

Microsoft Corp. (MSFT), International Business Machines Corp. (IBM) and Cisco Systems Inc. (CSCO) are among the fund's top holdings.

ProFunds Mid Cap Growth (MGPIX) seeks daily investment results that correspond to the daily performance of the S&P MidCap 400/Citigroup Growth index.

The fund normally commits at least 80% of assets to equity securities contained in the index and/or financial instruments that have similar economic characteristics. It

top longs/(shorts) w/ TOTAL returns since 1st purchase making me money TODAY: ASCA 48% SOLR 40% INOD 40% KONG 28% ARST 25% (MOS 46% CHTT 15%)

Today was owned by the banking sector as the “Bank Stress Tests” were released today. By in large this stress was viewed vastly different from all sides of the aisle. Regardless of anyone’s opinion, the market’s opinion was positive as banks roared higher pushing the NYSE composite Index and S&P500 higher. Lagging behind was the NASDAQ composite index and the IBD indexes. It shouldn’t be a major surprise seeing the banks leading for one day as the stress tests showed most banks can withstand further downside, but we’ll need to see leadership from the IBD indexes. Once again, we did see major support for the NASDAQ and other indexes showing there is a bullish tint …

top longs/(shorts) w/ TOTAL returns since 1ST purchase making me money TODAY: ASCA 37% KONG 30% SOLR 41% FIRE 26% RGR 21% INOD 29% (MANT 32% DV 25%)

By Market Speculator

From the open bell to the close stocks were being accumulated. Institutional players stepped up to the plate with cash from the sidelines. Leading the way was the NYSE Composite index up 4.16% followed by the S&P 400 (Mid-Cap) up 4.15%. Small caps weren’t far behind. Volume was up double digits (percentage terms) acorss the board marking a heavy accumulation day.

While Small and Mid-Cap stocks were the highlight of the day it is important to note the NASDAQ composite index was able to retake its 200dma on higher volume. A very important and highly positive move for the index. Although the NASDAQ has been the leading index it lagged today as other …

Nietzsche said “Out of chaos comes order”. Obama says there are signs of green shoots and glimmers of hope. George Soros and Nouriel Roubini say if you thought 2008 was bad, you ain’t seen nothin’ yet.

Quite a range of possibilities! How to deal with them?

Getting out of the way of the 2008 train wreck when we did before it happened was a good thing. Now the issue is what to do with the cash

Financial Life Stage Issues:

In retrospect, we would like to have participated in the current stock rally, but prudence trumped opportunity in the portfolios for most of our clients, because they are “mature” portfolios, meaning the owners cannot replace losses with new income; and most currently or soon will rely on their portfolios for current income to support their lifestyle.

This writer is in that broad “mature” portfolio category.  While actively working and not drawing

Robert Prechter, New York Times best-selling author and renowned market analyst, was recently asked to present his thoughts on the real estate market and the financial crisis to the Georgia Legislature. The following article has been adapted from the transcript. Elliott Wave International has made the full presentation available free, including the full transcript and 30-minute online video.

By Robert Prechter, CMT

I’d like to try to answer a question: “Are we near a low in the stock decline?” Because in these times when stocks and real estate are declining together, they tend to bottom roughly together as well. So I want to take a minute and look at a valuation chart for the stock market.

What we have here on the “X” axis is the bond yield/stock yield ratio for …

Monday November 13, 2008 Navivest

Standard & Poor’s is making changes to the S&P 500 and the S&P 400 MidCap. Following are details of the changes:

Wynn Resorts Ltd. (WYNN) is replacing Ashland Inc. (ASH) in the S&P 500, Ashland will replace Lear Corp. (LEA) in the S&P MidCap 400, S&P MidCap 400 constituent DENTSPLY International Inc. (XRAY) will replace Hercules Inc. (HPC) in the S&P 500, and Bucyrus International Inc. (BUCY) will replace DENTSPLY in the S&P MidCap 400 after the close of trading on Thursday, November 13.

Ashland will be acquiring Hercules in a transaction that will result in a company with a market value appropriate for the S&P MidCap 400, and which is expected to close on or about that date, pending final approvals. As of today’s close of trading Lear Corp. had a market value of approximately $129 million, ranking 400th in the S&P MidCap 400 index.

Market timing is not a good idea, but standing aside when a global train wreck is happening in proportions that rival the worst periods in modern history is not market timing — it is self-preservation.

Being out of the market makes deciding how to re-enter problematic, and some opportunity could be missed, but far greater opportunity is missed if capital is destroyed.

We are in cash from 80% to 100% in various accounts since mid-summer.

We believe that discretion is the better part of valor in this situation. Nobody really knows what comes next. We are in a Black Swan. The unknown unknowns dominate.

In times of such lack of clarity, we think keeping powder dry is probably a good thing to do.

As Alan Abelson said in his editorial this week in Barron’s:

The climate, in our jaundiced view, remains treacherous. The economy is destined to get worse - much worse, before it gets