The action in the market so far is inconclusive. The year started beautifully, then we plunged into another year showing losses. So soon.

For long-term investors who are buying companies with good prospects for several years to come, this is a buyers market. But there is one group to either avoid or treat with extreme care–small caps.

These stocks are doing much worse than large- and mid-cap stocks. As of Wednesday morning (Jan. 14), the large-cap Dow Industrials and the S&P 500 are down 3.7% and 3.5%. The S&P Midcaps are doing better– down 3%. But the Russell 2000 (small cap) Index is down 5% and the S&P small caps are down 6%.

Investors have the basic idea right. The smaller companies may…

“Alcoa to cut 13,500 jobs”…another recession headline confirms unemployment will continue to get worse for a while yet. Outright cuts make the big news. But some companies hitting rough times have taken a gentler approach. Their workers have kept their jobs…

But their paychecks are shrinking.

More and more Americans have become involuntary part timers. Some of these half-fortunate workers looked for full time work, but were only able to find part-time employment. Most of them are still in the same job but working less. Goodbye to the rich time-and-a-half overtime work. These involuntary part-timers are even losing straight-time hours.

An involuntary part-timer, also known as an “underemployed” person in the statistics, is someone who wanted a full-time job but works 35 or…

2009 has started out well. If you keep your portfolio on line, you should be seeing green ink from one end to the other.

This is cause for celebration. But poking under rocks to find the losers is interesting. Every industrial group and sector has a smattering of stragglers. And one industry is doing much worse than any other. If you are feeling contrarian, this is where to look for bargains among the unloved–in real estate investment trusts.

Known as REITs, pronounced “reets,” these trusts pass most of their profits through to investors as generous dividends. Among the REIT losers so far this year, the current yields range from 4% to 22%.

The problem with REITs is that to pay out a portion…

In 2009, investors will get a second chance at a massive growth story, says Lynn Carpenter. Starbucks (NYSE:SBUX) is down over 50% this year, but with founder Howard Schultz back in charge, it is likely to recover its momentum in the New Year. Lynn says investors could double their money with Starbucks within a year.

Stop blaming the unions for Detroit’s shortcomings, says Lynn Carpenter. Of course, jobs have to be cut in a recession. But this is not the silver bullet for businesses. And every job lost is a consumer lost, which is a big deal in a consumer economy. Lynn says we have no hope of an economic recovery until spiraling unemployment is brought under control.

Last week, we looked at the problem looming in many established blue-chip companies that pay dividends now and may not later. They have heavy pension obligations bearing down on them.

These problems should be stated in financial reports. But sometimes they are hidden in plain sight.  A bit of dubious padding in pension plan earnings projections can neatly camouflage millions in shortfall.

By the way—even if you are not buying dozens of stocks for their dividends, this is something good to know. It will help you evaluate those slick plans that brokers, bankers and insurance salesmen hold out to you when you take out life insurance, buy an annuity, set up a 401(k) or do any long-term planning yourself.

Let’s start…

Lynn Carpenter says pension fund deficits could be a major threat to dividend payments. Legislation forces companies to keep private pension plans well funded, meaning some will have to raise large sums of cash at short notice. Lynn picks 9 firms that could soon be forced into making big dividend cuts.

The bears are back out for Halloween. US futures are down sharply this morning, as edgy investors anticipate more weak economic data. October 2008 has been the worst month for stock markets in decades. But Lynn Carpenter says the reasons for the next bull market are already in place….

Print media companies are moving more and more content online. And shedding staff in the process. Lynn Carpenter says investors should stay clear of newspaper stocks.