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The Seven Themes That Will Lead to Maximum Profits in 2010

If the crippling financial events of 2008 and 2009 proved one thing, it’s that investors need to rethink the entire philosophy of "portfolio management."

Today, the best-performing managers around the world manage their portfolios based on broad-and-potent market themes. And with good reason.

It’s much easier to follow macro trends based on broad-based themes than it is to cobble together a bunch of different stocks into a portfolio and call it diversified. Theme-based investing is also much more profitable. And it allows you to better manage your risks.

In short, theme-based investing lets you have your cake and eat it, too.

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The Two Secrets to Successful Market Timing

Many so-called experts would have you believe that it’s impossible to “time” the markets. They’re wrong. There is a secret to market timing. And, investors who know what to look for will be able to lock in extreme profits.

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Preparing For the Next Asia

[Editor's Note: This interview was adapted from a recent issue of the McKinsey Quarterly, the business Journal of McKinsey & Co. It is reprinted with McKinsey's permission.]

Asia has proven comparatively resilient against the current downturn, but hurdles still lie ahead. In order to maintain robust growth rates in the face of weak U.S. demand, the region’s dynamic economies must stoke domestic consumption and embrace environmentally sustainable development policies, says Stephen Roach, chairman of Morgan Stanley Asia (NYSE: MS) and author of “The Next Asia: Opportunities and Challenges for a New Globalization.”

Clay Chandler, Asia editor with McKinsey & Co.’s publishing group, spoke with Roach in Hong Kong recently. During the interview, Roach analyzed the prospects for increased integration and cooperation between the region’s economies; explored the pitfalls and potential for countries like India and Japan; and considered whether the “Asian Century” has finally arrived.

Here is the text of that interview.

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Inside Wall Street: Does a Potential New Wall Street Pandemic Fester Underneath Apparent BlackRock Conflicts?

The U.S. Treasury Department recently announced it has preliminarily granted BlackRock Inc. (NYSE: BLK), a mega-money-management and risk-advisory firm, a second-round interview to potentially buy toxic assets from beleaguered U.S. banks.  The Treasury’s plan was to let a chosen few…

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How Credit Default Swaps Could Reverse the Economic Recovery

While the entire U.S. housing market was on the verge of collapse and corporate America was being systemically undermined, regulators purposely looked the other way.

Why would they do this?

The truth is that U.S. regulators believed the American public couldn’t handle…

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Secretive Bank Stress Tests Heighten Investor Stress

The bank stress test of the nation’s 19-largest financial institutions is a flawed exercise that threatens to elevate the very economic-system stress it was designed to relieve.

The U.S. Treasury Department isn’t scheduled to release the results of the much-ballyhooed bank…

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Will the Dark Cloud of Commercial Real Estate Blot Out the U.S. Recovery?

[Editor's Note: This is the first of a two-part look at how the U.S. real estate market will affect the nation's economic recovery. Today's focus: Commercial real estate. Next week: The residential rebound.]

By William Patalon III
Executive Editor
Money Morning/The Money Map…

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Stock Markets Move Past Gloom and Doom in Anticipation of the U.S. Economy's Recovery

The recent stock market rally may not be a bear-market trap or a “dead cat bounce,” but may in fact be the first signs of dust from an oncoming and unexpected bull stampede.

In the face of gloom-and-doom predictions, rapidly rising…

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“Shadow Fed” Casts a Shadow Over the Solvency of the U.S. Banking System

It’s called the “Shadow Fed.”

And it’s the next potential hot spot in the ongoing financial crisis. But few outside the Federal Home Loan Bank system, the Federal Deposit Insurance Corp. (FDIC) the U.S. Federal Reserve and the U.S. Treasury Department are…

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How the U.S. Credit Crisis Will Lead to an Overhaul of the U.S. Student Loan System

The costs of the ongoing credit crisis have been well chronicled. But there’s a bright spot, too.

In a crushing blow to lobbyists, bankers, and loan intermediaries, the credit crisis and the accompanying collapse of the securitization market may actually force…

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