ED HYMAN    Chairman, ISI Group

BILL MILLER   Portfolio Manager, Legg Mason Opportunity Trust

It doesn’t feel like a bull market right now, but that’s what it is. Despite this year’s modest start, the market has not had a serious correction in nearly two years and despite some waves the underlying current has been up since the market bottom in 2009.

This week’s guests say this period resembles the mid to late 1990’s, which was a very good multi-year stretch for both the economy and the stock market. According to ISI Group, the S&P 500 started both 1996 and 1998 lower only to rally strongly by year end, up 20% and 27% respectively.

What kind of a year will 2014 turn out to be? Which economies will thrive and which will falter? Where will money be made and lost? This week we have two financial superstars with us to answer those questions and they will be with us for the next two editions WEALTHTRACK.

One has been an exclusive television guest here every year since our launch nine years ago. Ed Hyman is Chairman of the independent, institutional research and money management firm, ISI Group and has been ranked the number one economist by Institutional Investor magazine’s annual survey of institutional investors for an unprecedented 34 years in a row.

Joining Ed is another Wall Street legend, rarely seen on TV, who has appeared exclusively on WEALTHTRACK many times over the years. Bill Miller is Chairman and Chief Investment Officer of LMM, LLC and is the Portfolio Manager of the Legg Mason Opportunity Trust mutual fund which he has run since its inception in December of 1999. According to The Wall Street’s Journal’s ranking of diversified U.S. stock funds, Opportunity Trust was the second best performing mutual fund last year and number one in 2012 with gains of 68% and 40% respectively. According to Morningstar it also trounced the market and its peers over the last five years, but badly lagged both over the latest ten-year period. Miller still holds the mutual fund record for beating the market for 15 consecutive years, from 1991-2005, while running the Legg Mason Capital Management Value Trust.

This week, in part one of our two-part interview, we will ask both guests about their continued optimism about the economy and markets as well as what is really worrying them. Their views of what they call the greatest monetary experiment of all time is fascinating.

In our EXTRA feature we will also ask each of them to talk about their ability to stay at the top of their game and their profession during careers spanning more than three decades. This week Ed Hyman will explain what he sees as his competitive edge. I hope you get a chance to see both the show and EXTRA.

Have a great weekend and make the week ahead a profitable and a productive one.

Best regards,

Consuelo

AVOID THE UNDERPERFORMANCE TRAP

Investors chase performance: buy when funds are hot and sell when they cool off

How to avoid the underperformance trap?

• Invest with a fund manager who suits your investment style.
• Don’t chase performance
• Buy incrementally

The transcript is available to WEALTHTRACK Premium subscribers here. You can also purchase and download this transcript safely and securely with your credit card or PayPal account for $4.99. You will need the free Adobe Acrobat Reader (Mac/Win) or Preview (Mac) to view and print the transcript.

Bill Miller from the Archives

April 6, 2012 Two “Great Investors” who are calling for new thinking and strategies by investors, economists and policy makers. Legg Mason’s legendary fund manager Bill Miller and bond guru Paul McCulley are together, from Paris.

April 13, 2012 Part 2 of our exclusive WealthTrack interview with two “Great Investors.” Legg Mason’s legendary fund manager Bill Miller and bond guru, Paul McCulley discuss which investments they are choosing for the long term.

February 8, 2013 Legendary value investor Bill Miller. The only mutual fund manager to beat the S&P 500 for 15 years in a row, Miller’s Legg Mason Capital Management Opportunity Fund was the number one mutual fund last year. Where is he investing now? Find out!

Ed Hyman from the Archives

January 6, 2012 Wall Street’s long time number one economist Ed Hyman and Great Investor Bob Doll. What they expect in the economy and markets in 2012 and strategies to prosper in it.

January 11, 2013 Financial Thought Leader, Ed Hyman, Wall Street’s number one ranked economist and BlackRock’s star Global Allocation Fund manager, Great Investor Dennis Stattman. They will assess the U.S. economy, markets and investment opportunities for 2013.

January 18, 2013 Game Changers for 2013! In part 2 of WealthTrack’s annual exclusive with Financial Thought Leader, Ed Hyman, Wall Street’s number one ranked economist for an unprecedented 33 years running, he and Great Investor Dennis Stattman, long-time portfolio manager of BlackRock’s Global Allocation Fund identify the three big issues they predict will make a huge positive difference to investors this year.

In our recent exclusive interview with superstar economist, Ed Hyman and investment legend Bill Miller I asked each about their ability to stay at the top of their game during careers spanning over three decades. This week we ask Ed Hyman how he explains his unprecedented track record of being voted the number one economist in the coveted Institutional Investor magazine poll for 34 years in a row.Watch the clip here.