New Money

What's Happening With Your Foreign Funds

By Katy Marquardt

Posted: August 12, 2008

So far this year, international funds of all flavors have suffered steep losses. Most developed markets, from the UK to Japan, are down 10 percent to 20 percent, reports Morningstar, and most emerging markets—especially those heavy on natural resources—have posted even greater declines. The reasons mirror many of the problems in the United States: credit woes, rising inflation, a cutback in consumer spending, and fears of a global recession. (On that note, a Citi report released today says worries over the global economy are "overdone" and that a modest slowdown is underway.)

Chances are your international funds are down. Morningstar provides some context: Every international fund it tracks that's available to retail investors is in the red so far this year. Foreign funds that invest in large companies are down an average of about 16 percent. Funds that invest in small and midsize value-oriented companies have dropped the same amount, and those that buy small and midsize companies with a growth bent are down even more.

Morningstar highlights two otherwise solid funds that have posted larger-than-average losses. One is Artisan International Small Cap, which has dropped nearly 25 percent so far this year, versus an 18.7 percent average loss for its category. Behind the decline are its geographic exposure, sector overweights and underweights (which reflect how much exposure a fund has to an industry, compared with its benchmark index), and individual stock picks, Morningstar says. Versus its peers, Artisan's portfolio is relatively heavy on China and Hong Kong, which have both been posting steep declines, and lighter on Japan, which has suffered less. The fund also holds a bigger stake in the financial sector and a smaller stake in the healthcare sector (which tends to hold up well in down markets) than most of its rivals.

Morningstar says it still has faith in the fund because of its long-term record.

energy

This is not a speed reading class. Read slowly and learn something.

The government has endless small (1-2kt) atomic artillery warheads that it does not know how to dispose of. The Chinese have a more serious problem. Below is a letter to the Whitehouse used as a minimum discourse on the subject. Use it freely.

Dear Mr. President,

The United States always had inherent cheap energy that made it independent of outside sources. Until the recent price at the pump spiraled so conveniently at election time, the political aspects of this fact made them impossible to consider. This proposal does not require the expenditure of money beyond the evaluation by experts you have in the Atomic Energy Commission. The political evaluation is yours. The following is merely a minimum review of the physical aspects.

Every nuclear nation conducted underground test atomic explosions. Ours were conducted north of Las Vegas and are still sitting there, waiting to prove themselves. We learned that all the energy released by an atomic explosion could be contained by little soil above, and would be injected into the local region, shattering it and substantially raising its temperature. Such an injection is the recipe for rejuvenating a tired oil field that had consumed its easy oil, or those such as an American shale field or a Canadian tar field that never had easy oil and would enjoy having some. Almost more important are places that never even hoped for easy oil but just high temperatures they could extract steam from and generate electricity. These already exist in our early test sites. They are merely poorly located, but they still could help Hoover Dam produce cheap electricity for Los Angeles.

Exploded above the surface, atomic ammunition produces a radioactive mess, but exploded below the surface it can produce a useful man-made geothermal deposit with a small glassy bubble forever containing any radioactivity. Producing small nuclear ammunition is easy. Disposing of it, as we know, is the problem. The only objections to a practical solution will be political, but considering the storm of political objections rising against high priced fuel, any cheap solution making us independent of foreign oil should prevail.

Harnessing continuous atomic methods of generating power will always be dangerous, expensive, and not so acceptable politically. The Russians really learned this at Chernabyl. When applied, atomic energy must be completely consumed all at once. This calls for underground explosions and friendly extraction of the heat energy later. Damaged oil fields may have to be partially redrilled which is cheaper than off shore or arctic drilling. Our knowhow and means can be shared with other nations lacking it. Easy oil should be universal.

Agriculture can grow much better energy products which do not conflict with food products. At growth both counter the carbon dioxide produced when later consumed in engines and bodies. The energy of the wind and the sun is being harnessed. The only breakthroughs remaining will be cheap medical and psychological ones. The production of children must be delayed.

CHARLES WEBBER charleswebber@sbcglobal.net, 951 961 7499

4130 Mennes St.

Riverside, CA 92509

Charles Webber of CA @ Aug 14, 2008 16:00:28 PM

energy

This is not a speed reading class. Read slowly and learn something.

The government has endless small (1-2kt) atomic artillery warheads that it does not know how to dispose of. The Chinese have a more serious problem. Below is a letter to the Whitehouse used as a minimum discourse on the subject. Use it freely.

Dear Mr. President,

The United States always had inherent cheap energy that made it independent of outside sources. Until the recent price at the pump spiraled so conveniently at election time, the political aspects of this fact made them impossible to consider. This proposal does not require the expenditure of money beyond the evaluation by experts you have in the Atomic Energy Commission. The political evaluation is yours. The following is merely a minimum review of the physical aspects.

Every nuclear nation conducted underground test atomic explosions. Ours were conducted north of Las Vegas and are still sitting there, waiting to prove themselves. We learned that all the energy released by an atomic explosion could be contained by little soil above, and would be injected into the local region, shattering it and substantially raising its temperature. Such an injection is the recipe for rejuvenating a tired oil field that had consumed its easy oil, or those such as an American shale field or a Canadian tar field that never had easy oil and would enjoy having some. Almost more important are places that never even hoped for easy oil but just high temperatures they could extract steam from and generate electricity. These already exist in our early test sites. They are merely poorly located, but they still could help Hoover Dam produce cheap electricity for Los Angeles.

Exploded above the surface, atomic ammunition produces a radioactive mess, but exploded below the surface it can produce a useful man-made geothermal deposit with a small glassy bubble forever containing any radioactivity. Producing small nuclear ammunition is easy. Disposing of it, as we know, is the problem. The only objections to a practical solution will be political, but considering the storm of political objections rising against high priced fuel, any cheap solution making us independent of foreign oil should prevail.

Harnessing continuous atomic methods of generating power will always be dangerous, expensive, and not so acceptable politically. The Russians really learned this at Chernabyl. When applied, atomic energy must be completely consumed all at once. This calls for underground explosions and friendly extraction of the heat energy later. Damaged oil fields may have to be partially redrilled which is cheaper than off shore or arctic drilling. Our knowhow and means can be shared with other nations lacking it. Easy oil should be universal.

Agriculture can grow much better energy products which do not conflict with food products. At growth both counter the carbon dioxide produced when later consumed in engines and bodies. The energy of the wind and the sun is being harnessed. The only breakthroughs remaining will be cheap medical and psychological ones. The production of children must be delayed.

CHARLES WEBBER charleswebber@sbcglobal.net, 951 961 7499

4130 Mennes St.

Riverside, CA 92509

Charles Webber of CA @ Aug 14, 2008 16:00:17 PM

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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