April/May 2009 Departments 6 New on MorningstarAdvisor.com Letter from the Editor Advisor Profile 17 The Classics For clients with a long-term horizon, Mark Rosenbaum and Jana Basden say that nothing beats good ol’ asset allocation. 20 Investment Briefs Sector Rap 61 The Future of Big Pharma Things look grim, but investors who can bear it could benefit. By the Numbers 68 Mutual Fund Analyst Picks 72 50 Most Popular Equity ETFs 74 Undervalued Stocks 9 10 Contributors On Topic 12 Did Diversification Fail Investors? Screens 64 Yield Your Clients Can Use 66 Wide Moats, Good Stewardship: A Potent BearMarket Combination In the Loop 79 New at Morningstar Gray Matters 25 A Multiple-Lens Approach to Analysis How a series of indexes can bring market trends into sharp focus. Phillips Curve 80 To Beat the Devil 10 Questions 14 Accounting for His Success Investments á la Carte 58 Four Picks for the Present Our analysts pick out a stock, a mutual fund, an ETF, and a separate account worthy of investment. 4