Portfolio

Get ready for a strong recovery in 2011, as corporate profits will boost the markets, predicts kasina CEO Steven Miyao. By mid-year, positive flows into equities will exceed flows into bonds, he said.

The new retirement plan requirement to disclose all fees will be particularly difficult for non-registered investments, such as bank collective funds, separately managed accounts and annuities, the SPARK Institute warns. Thus, it is developing standards to facilitate disclosure.

Americans’ financial outlook is improving, according to the December Country Financial Security Index. Thirty-eight percent rate their financial security positively, and another 15% sense their financial security is improving.

Some transaction participants appear to be rushing to market questionable Build America Bond, bank-qualified or other municipal bond deals before tax incentives expire at the end of the year and risking Internal Revenue Service enforcement action for violations of tax requirements, according to market sources.

Investors continued to ferry cash out of their municipal bond mutual funds at historic rates last week as a tumultuous sell-off sowed fear among buyers.

Morningstar said investors pulled $7.6 billion from muni bond funds, the category’s worst month for outflows except for the $8 billion redeemed in October 2008 during the credit crisis peak.

ETF assets reach $887.2 billion.

Fixed-income investors are exercising patience these days, with slow-moving rates that are expected to edge up slightly in 2011.

The Conference Board Leading Economic Index for the U.S. increased 1.1% in November to 112.4, following a 0.4% increase in October and a 0.6% increase in September.

While the occasional active investor/mutual fund will beat the market over time, the odds are weighted powerfully against that happening.