Morningstar Advisor - August/September 2009 - 79

In the Loop New at Morningstar Rodriguez let no segment of the government off the hook in its response to the credit crisis. “My trust is severely shaken in the Federal Reserve, Congress, and the executive branch,” he said. r Chris Davis, chairman of Davis Selected Advisers Inc., said that because flagging markets lead to panicked investors, advisors have the opportunity to provide a huge service by encouraging clients to stay the course. “We manage money. We don’t manage clients,” Davis said. “That’s what you do.” Davis said that navigating a path to success even in that worst-case scenario hinges on the ability of financial advisors to help clients understand that, over time, investing in the stock market remains profitable and safe. If you missed this year’s conference, go to MorningstarAdvisor.com to order a set of audio recordings from the 2009 conference or download recordings of individual sessions. The 2009 Morningstar Investment Conference More than 1,200 financial-services professionals gathered during the last week of May for the 2009 Morningstar Investment Conference in Chicago. Morningstar analysts and top-flight speakers shared their insight into the state of investing during panels, presentations, and informal hallway discussions. Some highlights: r PIMCO cofounder Bill Gross said the ongoing process of corporate deleveraging and the corresponding governmental releveraging will create an entirely new set of rules and investing tenets—what he referred to as a “new normal.” “There will be an end (to current economic woes), but there will be a different world we’ll have to get used to,” he said. r Vanguard founder John Bogle said the recession is evidence of unethical behavior among some in the financial community and that many financial professionals were seduced by impressive short-term successes that industry peers generated with dubious practices. “The financial-services sector subtracts value from society,” he said, comparing it with gambling, law, and government as entities that simply move money around and extract a bit for themselves. “Think of how the system has gotten out of control. We’re subtracting value. In the long run, the financial-services sector cannot survive on that.” r a passionate speech, Bob Rodriguez, the In hugely successful manager of FPA Capital FPPTX and FPA New Income FPNIX, pulled no punches in taking to task the mutual fund industry and the U.S. government. He chided professional money managers and investment analysts for not recognizing the housing and credit bubble. Rodriguez also called for the fund industry to explain its recent performance without marketing gloss. “We owe our shareholders more than platitudes,” he said. Video interviews, additional reports on the sessions, and more are also accessible online. While the speakers for next year’s conference aren’t set yet, the dates are: the 2010 Morningstar Investment Conference will be from June 23–25 at McCormick Place in Chicago. MorningstarAdvisor.com 79

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Morningstar Advisor - August/September 2009

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