August/September 2009 Departments 6 New on MorningstarAdvisor.com Letter from the Editor Advisor Profile 17 Staying Nimble A core strategy is important, says Bruce Meyer, but so is the ability to respond to changing economic environments. 20 Investment Briefs Investments á la Carte 56 Four Picks for the Present Our analysts pick out a stock, a mutual fund, an ETF, and a separate account worthy of investment. Screens 62 The Not-Ready-for-HighYield Players 64 Moats Around Small Castles 9 10 Contributors On Topic 12 Are We at the Beginning of a New Small-Cap Era? By the Numbers 66 70 72 76 Mutual Fund Analyst Picks 50 Most Popular Equity ETFs Undervalued Stocks Most Popular Variable Annuities Sector Rap 58 Signs of Stabilization in the Housing Industry Deep problems remain in the market, but there are reasons to believe spring was a turning point. Gray Matters 24 Asia’s Way Forward The financial crisis gives Asia a chance to strategically position itself in the new international financial architecture. Will Asia seize the opportunity? 29 MPT Put Through the Wringer After another market crash, advisors question whether Modern Portfolio Theory is the best way to tackle asset allocation. 10 Questions 14 At Home Around the World In the Loop 79 New at Morningstar Phillips Curve 80 The No in Innovation 4