New Wave of Active ETFs; Richard Thaler Rethinks Retirement: October Research—Slideshow

After the Cold War’s end, one might have expected the United States to enjoy the fruits of victory as the world’s only superpower, and Russia to learn the democracy and free-market capitalism it had newly embraced. Instead, writes Global Economy columnist Alexei Bayer, “the two countries have followed a remarkably similar downward spiral.”

Rather than reforming and modernizing its industrial base, Bayer writes, Russia became increasingly addicted to revenues from its exports of natural resources. As for the U.S., it too has seen industrial decline, with our nation’s largest “export” turning out to be Treasury paper.

Russia may find itself with massive spare capacity after building pipelines to a Western Europe that’s grown wary of dependence on Russia. The U.S. for now remains a global safe haven but the trust of investors may prove vulnerable amid Washington’s political bickering over fiscal policy.

Where’s Your Compensation Heading?

Contributing Editor Ellen Uzelac looks at the shifting and unclear compensation landscape. Many financial advisors expect to see a spike in revenue in 2011 but continuing market volatility and uncertainty about regulation have put a chill on enthusiasm.

Ramping Up

As a certified financial planner back in 1990, Spenser Segal ran a retirement plan projection for a couple in their mid-50s who thought they had saved enough for their retirement dreams. They hadn’t, and now he was the first advisor they’d met. That meeting was a turning point in forming Segal’s desire to help more people than just a few hundred clients.

Today, as CEO and chairman of software and services company ActiFi, Segal is helping transform the way financial advice is delivered. Contributing Editor Ellen Uzelac profiles Segal and his efforts to make advisory practices more efficient, effective and scalable.

“Every day, I have conversations with advisors and I’ve gotten very good at being able to size up who thinks like a business owner and who thinks like a practitioner,” says Segal. His goal is to help those who want to operate as owners develop the greater and more lasting value that can arise from that.

It’s About Timing

Our Closing Bell columnist Bill Miller, who seeks out the whimsical in good times and bad, recalls that when he was training to be a financial advisor, he was taught the adage, “It’s not about timing the market; it’s about time in the market.”

Now, he suspects widespread loss of faith in buy-and-hold will inspire a new marketing approach, complete with glossy brochures, telling customers they need market timing, and he contemplates when that too will run its course.