Stocks to Sell, Managers to Buy, and Much-Needed Perspective

A calm voice of reason in a noise-filled time. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=30088&elqTrackId=9010b13d0f8148208391bd8acdcc652a&elq=744a7816024a4ac595e416c3a54acfb9&elqaid=30088&elqat=1&elqCampaignId=13797) [Smart Investor] Smart Investor with [Susan Dziubinski, Director of Content]( [Susan Dziubinski] We tend to be glass-half-full, practical types at Morningstar. Sure, we'll raise red flags when we think particular investments are overbought or not completely understood--[ARK Innovation]( and [SPACs]( this earlier year, for instance--and provide perspective. But we're not alarmists. At our core, we believe that thoughtful, low-cost, long-term investing is a great way for anyone to accumulate wealth and achieve financial independence. We like to think that approach embodies smart investing. As a result, much of our content each week focuses on the positive--great investing ideas, sensible portfolio strategies, and level-headed perspective. Along those lines, this week we shared the 2021 nominees for the Morningstar Awards for Investing Excellence. Each year, we honor [outstanding portfolio managers]( [promising up-and-comers]( and [asset managers with a history of putting investors first](. (We'll announce this year's winners next week.) We also spotlighted [value stocks with more room to run]( [accounts for heavy savers]( and [a stock that top managers like](. But that doesn't mean we think everything is sunshine and rainbows. We recognize, for instance, that the market today appears frothy, meaningful yield is tough to find, and the financial landscape isn't as equitable as it may seem. To that end, this week we isolated [a dozen stocks to avoid]( [uncovered high-yield bond fund managers making bolder bets]( and streamed a live event (now available on demand) discussing [how investors from the Black community can overcome their unique financial challenges](. We think our editorial content is pragmatic--a calm voice of reason. We hope you think the same. ADVERTISEMENT [media]( [media] Morningstar Specialists [The Long-Term Forecast for U.S. Stock Returns]( [The Long-Term Forecast for U.S. Stock Returns]( Expect 7.5%. John Rekenthaler [12 Stocks to Avoid]( [12 Stocks to Avoid]( These stocks are all extremely overvalued by our standards--and carry a good deal of uncertainty, too. Susan Dziubinski [The Time Is Right for Aftertax 401(k) Contributions]( [The Time Is Right for Aftertax 401(k) Contributions]( The prospect of higher taxes and the uptake of in-plan conversions make this maneuver a no-brainer for heavy savers who have access to it. Christine Benz Popular This Week [Barney Frank at the Forefront]( The former congressman remains an outspoken advocate. Laura Lallos [Morningstar Awards for Investing Excellence--Outstanding Portfolio Manager Nominees]( Four portfolio managers earn accolades for industry achievements. Claire Butz [Some High-Yield Managers Are Making Bolder Bets]( The lowest-rated bonds appear to be trading in more dangerous territory lately. R.J. D'Ancona [How to Invest in Disruptive Technology Stocks]( This type of investing is not for the faint of heart, but we still see value in several of these companies. Dave Sekera, CFA [Dissecting Vanguard's New Dividend Indexes]( A pair of popular Vanguard dividend funds are getting new indexes, but their approach remains the same. Lan Anh Tran, Daniel Sotiroff Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2021 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602