Playboy Hugh Hefner marries his ‘runaway bride’






LOS ANGELES (AP) — Hugh Hefner is celebrating the new year as a married man once again.


The 86-year-old Playboy magazine founder exchanged vows with his “runaway bride,” Crystal Harris, at a private Playboy Mansion ceremony on New Year’s Eve. Harris, a 26-year-old “Playmate of the Month” in 2009, broke off a previous engagement to Hefner just before they were to be married in 2011.






Playboy said on Tuesday that the couple celebrated at a New Year’s Eve party at the mansion with guests that included comic Jon Lovitz, Gene Simmons of KISS and baseball star Evan Longoria.


The bride wore a strapless gown in soft pink, Hefner a black tux. Hefner’s been married twice before but lived the single life between 1959 and 1989.


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Study Suggests Lower Mortality Risk for Overweight People





A century ago, Elsie Scheel was the perfect woman. So said a 1912 article in The New York Times about how Miss Scheel, 24, was chosen by the “medical examiner of the 400 ‘co-eds’ ” at Cornell University as a woman “whose very presence bespeaks perfect health.”




Miss Scheel, however, was hardly model-thin. At 5-foot-7 and 171 pounds, she would, by today’s medical standards, be clearly overweight. (Her body mass index was 27; 25 to 29.9 is overweight.)


But a new report suggests that Miss Scheel may have been onto something. The report on nearly three million people found that those whose B.M.I. ranked them as overweight had less risk of dying than people of normal weight. And while obese people had a greater mortality risk over all, those at the lowest obesity level (B.M.I. of 30 to 34.9) were not more likely to die than normal-weight people.


The report, although not the first to suggest this relationship between B.M.I. and mortality, is by far the largest and most carefully done, analyzing nearly 100 studies, experts said.


But don’t scrap those New Year’s weight-loss resolutions and start gorging on fried Belgian waffles or triple cheeseburgers.


Experts not involved in the research said it suggested that overweight people need not panic unless they have other indicators of poor health and that depending on where fat is in the body, it might be protective or even nutritional for older or sicker people. But over all, piling on pounds and becoming more than slightly obese remains dangerous.


“We wouldn’t want people to think, ‘Well, I can take a pass and gain more weight,’ ” said Dr. George Blackburn, associate director of Harvard Medical School’s nutrition division.


Rather, he and others said, the report, in The Journal of the American Medical Association, suggests that B.M.I., a ratio of height to weight, should not be the only indicator of healthy weight.


“Body mass index is an imperfect measure of the risk of mortality,” and factors like blood pressure, cholesterol and blood sugar must be considered, said Dr. Samuel Klein, director of the Center for Human Nutrition at Washington University School of Medicine in St. Louis.


Dr. Steven Heymsfield, executive director of the Pennington Biomedical Research Center in Louisiana, who wrote an editorial accompanying the study, said that for overweight people, if indicators like cholesterol “are in the abnormal range, then that weight is affecting you,” but that if indicators are normal, there’s no reason to “go on a crash diet.”


Experts also said the data suggested that the definition of “normal” B.M.I., 18.5 to 24.9, should be revised, excluding its lowest weights, which might be too thin.


The study did show that the two highest obesity categories (B.M.I. of 35 and up) are at high risk. “Once you have higher obesity, the fat’s in the fire,” Dr. Blackburn said.


But experts also suggested that concepts of fat be refined.


“Fat per se is not as bad as we thought,” said Dr. Kamyar Kalantar-Zadeh, professor of medicine and public health at the University of California, Irvine.


“What is bad is a type of fat that is inside your belly,” he said. “Non-belly fat, underneath your skin in your thigh and your butt area — these are not necessarily bad.”


He added that, to a point, extra fat is accompanied by extra muscle, which can be healthy.


Still, it is possible that overweight or somewhat obese people are less likely to die because they, or their doctors, have identified other conditions associated with weight gain, like high cholesterol or diabetes.


“You’re more likely to be in your doctor’s office and more likely to be treated,” said Dr. Robert Eckel, a past president of the American Heart Association and a professor at University of Colorado.


Some experts said fat could be protective in some cases, although that is unproven and debated. The study did find that people 65 and over had no greater mortality risk even at high obesity.


“There’s something about extra body fat when you’re older that is providing some reserve,” Dr. Eckel said.


And studies on specific illnesses, like heart and kidney disease, have found an “obesity paradox,” that heavier patients are less likely to die.


Still, death is not everything. Even if “being overweight doesn’t increase your risk of dying,” Dr. Klein said, it “does increase your risk of having diabetes” or other conditions.


Ultimately, said the study’s lead author, Katherine Flegal, a senior scientist at the Centers for Disease Control and Prevention, “the best weight might depend on the situation you’re in.”


Take the perfect woman, Elsie Scheel, in whose “physical makeup there is not a single defect,” the Times article said.


This woman who “has never been ill and doesn’t know what fear is” loved sports and didn’t consume candy, coffee or tea. But she also ate only three meals every two days, and loved beefsteak.


Maybe such seeming contradictions made sense against the societal inconsistencies of that time. After all, her post-college plans involved tilling her father’s farm, but “if she were a man, she would study mechanical engineering.”


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With a Mall Boom in Russia, Property Investors Go Shopping





MOSCOW — Shoppers who find that 250 stores aren’t enough can go ice skating, watch movies or even ride a carousel, all under a single roof.




While it sounds like the Mall of America, this mall is outside Moscow, not Minneapolis.


“I feel like I’m in Disneyland,” Vartyan E. Sarkisov, a shopper toting an Adidas bag, said recently while making the rounds of the Mega Belaya Dacha mall.


Instead of bread lines, Russia is known these days for malls. They are booming businesses, drawing investments from sovereign wealth funds and Wall Street banks, most recently Morgan Stanley, which paid $1.1 billion a year ago for a single mall in St. Petersburg.


One mall, called Vegas, rose out of a cucumber field on the edge of Moscow and became, its owners say, larger than the Mall of America if the American mall’s seven-acre amusement park is not counted in the calculation of floor space.


A few offramps away on the Moscow beltway, another mall scored a different kind of victory: the Mega Tyoply Stan shopping center drew 57 million visitors at its peak in 2007, well ahead of the 40 million annual visits reported by the Mall of America.


As American malls dodder into old age, gaptoothed with vacancies, Russia’s shopping centers are just now blossoming into their boom years, nourished by oil exports that are lifting wages.


“It’s 1982 all over again in Russia,” said Lee Timmins, the country representative of Hines, a Texas-based real estate group that is opening three outlet malls in Russia, referring to the heyday of the American mall experience. Russians, he said, love malls.


The mall boom illustrates an extraordinarily important theme in Russian economics these days. The growing crowds at malls, and the keen interest in Russian malls on the part of Wall Street banks, are signs that the emerging middle class that made up the street protests against Vladimir V. Putin in Moscow last winter is becoming a force in business as well as politics.


Investors, who with money at stake are a bellwether of the new trends, are not waiting for the next round of protests; they are already placing bets on the rise of a broad affluent class in Russia.


“Over the past 10 years, Russia has turned into a middle-class country,” Charles Slater, a retail analyst at Cushman & Wakefield, a commercial real estate consulting firm, said in an interview. “What better to do than go to an enclosed, warm environment with many things on offer, whether that be bowling, cinema or food courts, things the customers have not been used to in the past?”


Moscow now has 82 malls, including two of the largest in Europe, according to the International Council of Shopping Centers, a New York-based trade association. Both are owned by Ikea Shopping Centers Russia, the branch of the Swedish assemble-it-yourself furniture franchise that manages 14 malls here. In Russia, malls are still novel; the first Western-style suburban mall opened in 2000. They are now changing hands as developers sell to institutional investors, like Morgan Stanley, shedding light for the first time on their eye-popping values.


At the core of the attraction for investors is the rising disposable income of Russians, nudged along by policies favoring the middle class, lest their challenge to President Putin’s rule intensify.


Russia has a flat 13 percent income tax rate. Most Russians own their homes, a legacy of post-Soviet privatizations, and so pay no mortgage or rent. Health care is socialized.


Not surprisingly, then, Russians have become fanatical shoppers. Russians spend 60 percent of their pretax income on retail purchases, a category that includes food, according to Jones Lang LaSalle, a real estate consulting firm. The country in second place in Europe is Sweden, where retailing accounts for 40 percent of total private spending. Germans, by comparison, spend 28 percent of their salaries shopping, according to Jones Lang LaSalle.


Malls, where the secrets of Western capitalism were finally peeled open and laid bare, with fast food, clothes, ice rinks, electronics and appliances wherever the eye falls, have mesmerized shoppers here — much as they did in their early years in the United States, from the 1960s to the 1980s.


Olga N. Zaitsova, 55, who was in the Mega Belaya Dacha mall with her granddaughter Anastasia, said she came every weekend, drawn by the warm play area for toddlers. “It’s just not comfortable to be outside when it’s so cold,” she said.


When she shops, she said, “now we buy things we want, not things we need.”


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Lunar New Year celebrants get no rest after Western holidays









At her store in Chinatown, Tracy Tieu replaces red and green Christmas trinkets with red and gold Lunar New Year decorations as she greets shoppers fresh from Las Vegas.


A mother strokes a jade dragon leaping from a dark wood emblem. A man and his wife unfurl scrolls bearing symbols of wealth. A student buys assorted little Buddhas, lining them up by belly size.


Inside the shop, Wing Ha Hing Gifts & Arts, Asian travelers this past weekend talk about how many aunts, uncles, cousins and grandparents they expect to host at noisy family gatherings.





One new year celebration may have ended — but for many Southern Californians the bustle of preparing for the Lunar New Year continues full force, with no time for holiday fatigue.


"We can't afford it," Tieu says. "We go with the season.... I order supplies six months in advance."


At crowded shopping plazas in Los Angeles' Chinatown and Koreatown, the San Gabriel Valley and Orange County's Little Saigon, seasonal foods line bakery shelves, holiday music plays on open-air speakers and Chinese, Korean and Vietnamese consumers are spending big — yet again — on their most important annual celebration.


The Year of the Snake begins Feb. 10. Those born under this sign are believed to have a good temper and strong passion, but can be suspicious.


The Lunar New Year is a time when debts are paid, arguments are laid to rest, hair is cut and homes are painted and polished and rituals are followed to sweep away ill fortune and welcome good luck. Doors and windows are decorated with themed images of happiness, prosperity and longevity, and incense is lighted in temples to pay respect to ancestors.


In the narrow, colorful shop her father opened in 1990, Tieu is surrounded by flowers, feng shui diaries, floating lotus candles and other traditional gifts.


Regina Gomez, a Chinese American from Nevada, was one of those hunting for bargains along Chinatown's main drag Sunday. She stopped at Tieu's store to prepare for the coming festivities. "When we buy for entertainment, it's better to buy for it here. It's less," she says, browsing with her kids, Shelby and Brittany. "I came to L.A. for Christmas and knew I should take a look before going home."


On the first morning of the new year, as everyone exchanges gifts and good wishes, Tieu plans to pass out crisp dollar bills in lucky red envelopes to some 20 nieces and nephews. "I have to give each of them at least $20 – anything smaller just isn't acceptable."


"It doesn't matter what we do or how much we gave for the previous holidays," adds Angie Tieu, her younger sister. "We have to remember the Lunar New Year, it's tradition, and we must spend."


On top of the financial costs, the extended holiday season carries health costs, said Calvin Ho, founder of the Plaid Bag Connection, a blog exploring the links between Asian groups outside their ethnic homeland. "We've been eating since the Moon Festival" in September "to Halloween, to Thanksgiving to Christmas and forward. Everyone overindulges because it's impossible not to."


Ho, who doesn't eat fried foods, says "with the holidays it's really hard to avoid it."


"Everything involves family," he said. "And when you are making multiple visits to different members of family day after day, you must sit down and share a meal. I get all my cravings in and it'll last until next fall."


Visiting Chinatown with her husband on Sunday, Elisa Aquino, who is half-Chinese, said she intends to serve dim sum dishes when she invites friends and relatives to her Carson home. "We go for a bang. High impact, lots of songs, lots of jokes.... I'm not cooking. We order," she adds.


Stephanie Yuan, working a souvenir kiosk nearby, said sales are brisk post-Christmas. "We are sold out of snake lucky charms," she says proudly, noting that the item features the animal highlighted in the 2013 Chinese zodiac.


"Here, you buy this one," she tells passing tourists, pointing to an Asian version of the Cheshire cat, complete with battery-operated paw, happy face and money pouch. On its white ceramic body is the Chinese character for $1 million. "It will lead you to a good way."


Merchants like Yuan and Thanh Ly, of neighboring Tambaba Fashion, can't take Lunar New Year off. "It's the day to sell," Ly says, folding traditional dresses made in Vietnam and Hong Kong. "We would like to have a vacation but we think about our living first. Some people buy last-minute."


Kevin Vong of Fresno isn't one of those. Outside Lien Hoa BBQ, he loads his truck with a whole roast pig, costing $195, carting it to a gathering to pray for the souls of his ancestors. He does this at the end of the Western new year, then again at the Lunar New Year. "I do not forget," he says. "I want someone doing that for me later. Years later."


anh.do@latimes.com





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Ban on demanding Facebook passwords among new 2013 state laws






CHICAGO (Reuters) – Employers in California and Illinois will be prohibited from demanding access to workers’ password-protected social networking accounts and teachers in Oregon will be required to report suspected student bullies thanks to new laws taking effect in 2013.


In all, more than 400 measures were enacted at the state level during 2012 and will become law in the new year, according to the National Conference of State Legislatures (NCSL).






Some of the statutes, which deal with everything from consumer protection to gun control and healthcare, take effect at the stroke of midnight. Others will not kick in until later in the year.


The raft of measures includes a new abortion restriction in New Hampshire, public-employee pension reform in California and Alabama, same-sex marriage in Maryland, and a requirement that private insurers in Alaska cover autism in kids and young adults, NCSL said.


In New Hampshire, a rarely used form of late-term abortion will become illegal except to save the life of the mother – and even then only if two doctors from separate hospitals certify the procedure is medically necessary.


John Lynch, the state’s outgoing Democratic governor, had vetoed the measure, saying it would threaten the lives of women in rural areas. But the state’s Republican-controlled legislature later overrode him.


In California and Illinois, laws that take effect at 12:01 a.m. local time will make it illegal for bosses to request social networking passwords or non-public online account information from their employees or job applicants.


Michigan’s Republican Governor Rick Snyder signed a similar measure into law earlier this month that took effect immediately. The Michigan law also penalizes educational institutions for dismissing or failing to admit a student who does not provide passwords and other account information used to access private internet and email accounts, including social networks like Facebook and Twitter.


But workers and job seekers in all three states will still need to be careful what they post online: Employers may continue to use publicly available social networking information. So inappropriate pictures, tweets and other social media indiscretions can still come back to haunt them.


Gun violence – in places where it’s all too common, such as Chicago, and in places where it’s unexpected, such as Sandy Hook Elementary School in Newtown, Connecticut – was big news in 2012. But only a handful of new state firearms laws are set to take effect in 2013.


In Michigan, the definition of a “pistol” under the law will now include any firearm less than 26 inches in length. The new definition encompasses some rifles with folding stocks and will make the weapons subject to the same restrictions as pistols.


In Illinois, certain guns currently regulated by state law, including paintball guns, will be excluded from the definition of a firearm and participants in military re-enactments will be exempt from some weapons laws.


Another big story in 2012 was the effort by lawmakers in a number of cash-strapped states to put their public employee pension funds on a sounder financial footing.


In California and Alabama, reforms designed to begin to address the unfunded liabilities of those retirement systems will take effect in 2013.


Among the other new laws on the books in 2013:


* In California, prison workers and peace officers will now be prohibited from having sex with inmates and prisoners in transport.


* In Illinois, sex offenders will be prohibited from distributing candy on Halloween, or playing Santa or the Easter Bunny.


* In Oregon, employers won’t be allowed to advertise a job vacancy if they won’t consider applicants who are currently out of work.


* In Kentucky, residents will be prohibited from releasing feral or wild hogs back into the wild and Illinois will ban the possession and sale of shark fins.


* And in Florida, the term “motor vehicle” will no longer apply to the specialized all-terrain vehicles with over-sized tires known as “swamp buggies” that are popular in some parts of the state.


(Reporting by James B. Kelleher; Editing by Greg McCune and Nick Zieminski)


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Kardashian, West feel ‘blessed’ over baby news






ATLANTIC CITY, N.J. (AP) — Kim Kardashian and Kanye West are feeling lucky about their first child together.


“It’s true,” the 32-year-old reality TV star said in a statement on her site Monday. “Kanye and I are expecting a baby. We feel so blessed and lucky and wish that in addition to both of our families, his mom and my dad could be here to celebrate this special time with us.”






Kardashian’s father, Robert Kardashian, died in 2003. West’s mother, Donda West, died in 2007.


Kardashian added in the blog post that she was “looking forward to great new beginnings in 2013 and to starting a family.”


The 35-year-old rapper revealed to a crowd of more than 5,000 in song form at a concert Sunday that his girlfriend is pregnant. Kardashian was in the crowd at Revel Resort’s Ovation Hall with her mother, Kris Jenner, and West’s mentor and best friend, Jay-Z.


The news instantly went viral online, with thousands posting and commenting on the expecting couple.


Most of the Kardashian clan tweeted about the news, including Kim’s sisters. Kourtney Kardashian wrote: “Another angel to welcome to our family. Overwhelmed with excitement!”


West told concertgoers to congratulate his “baby mom” and that this was the “most amazing thing.”


Representatives for West and Kardashian didn’t immediately respond to emails about the pregnancy.


The rapper and reality TV star went public with their relationship in March.


Kardashian married NBA player Kris Humphries in August 2011 and their divorce is not finalized.


West’s Sunday-night show was his third consecutive performance at Revel. He took the stage for nearly two hours, performing hits like “Good Life,” ”Jesus Walks” and “Clique” in an all-white ensemble with two bandmates.


Kardashian is expected to spend New Year’s Eve at public appearance at a Las Vegas nightclub.


___


AP Writer Bianca Roach contributed to this report.


___


Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin . Follow Bianca Roach at http://twitter.com/B__Roach


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F.D.A. Approves Sirturo, a New Tuberculosis Drug





The Food and Drug Administration announced on Monday that it had approved a new treatment for multidrug-resistant tuberculosis that can be used as an alternative when other drugs fail.




The drug, to be called Sirturo, was discovered by scientists at Janssen, the pharmaceuticals unit of Johnson & Johnson, and is the first in a new class of drugs that aims to treat the drug-resistant strain of the disease.


Tuberculosis is a highly infectious disease that is transmitted through the air and usually affects the lungs but can also affect other parts of the body, including the brain and kidneys. It is considered one of the world’s most serious public health threats. Although rare in the United States, multidrug-resistant tuberculosis is a growing problem elsewhere in the world, especially in poorer countries. About 12 million people worldwide had tuberculosis in 2011, according to Johnson & Johnson, and about 630,000 had multidrug-resistant TB.


A study in September in The Lancet found that almost 44 percent of patients with tuberculosis in countries like Russia, Peru and Thailand showed resistance to at least one second-line drug, or a medicine used after another drug had already failed.


Treating drug-resistant tuberculosis can take years and can cost 200 times as much as treating the ordinary form of the disease


“This is quite a milestone in the story of therapy for TB,” Dr. Paul Stoffels, the chief scientific officer at Johnson & Johnson, said in an interview. He said the approval was the first time in 40 years that the agency had approved a drug that attacked tuberculosis in a different way from the current treatments on the market. Sirturo works by inhibiting an enzyme needed by the tuberculosis bacteria to replicate and spread throughout the body.


Sirturo, also known as bedaquiline, would be used on top of the standard treatment, which is a combination of several drugs. Patients with drug-resistant tuberculosis often must be treated for 18 to 24 months.


Even as it announced the approval, however, the F.D.A. also issued some words of caution.


“Multidrug-resistant tuberculosis poses a serious health threat throughout the world, and Sirturo provides much-needed treatment for patients who have don’t have other therapeutic options available,” Edward Cox, director of the office of antimicrobial products in the F.D.A.’s center for drug evaluation and research, said in a statement. “However, because the drug also carries some significant risks, doctors should make sure they use it appropriately and only in patients who don’t have other treatment options.”


The consumer advocacy group Public Citizen opposed approval in a letter to the F.D.A. in mid-December, saying that the results of a limited clinical trial showed that patients using bedaquiline were five times as likely to die than those on the standard drug regimen to treat the disease.


“Given that bedaquiline belongs to an entirely new class of drugs, it is entirely feasible that death in some cases was due to some unmeasured toxicity of the drug,” the letter said.


Sirturo carries a so-called black box warning for patients and health care professionals that the drug can affect the heart’s electrical activity, which could lead to an abnormal and potentially fatal heart rhythm. The warning also notes deaths in patients treated with Sirturo. Nine patients who received Sirturo died compared with two patients who received a placebo. Five of the deaths in the Sirturo group and all of the deaths in the placebo arm seemed to be related to tuberculosis, but no consistent reason for the deaths in the remaining Sirturo-treated patients could be identified.


Doctors Without Borders and the Bill and Melinda Gates Foundation, both active in the fight against tuberculosis and other global diseases, applauded the F.D.A.’s decision.


Jan Gheuens, interim director of the TB Program for the Gates Foundation, called it a “long-awaited event” and said the fight against TB had not benefited from new drugs in the way H.I.V. had. Beyond the benefits of the drug itself, he said the quick approval process could be a model for other drugs sorely needed in the developing world.


He also suggested, however, that more trials should be conducted to get a better understanding of the side effects that led to the black box warning.


The F.D.A. approved bedaquiline under an accelerated program that allows the agency to conditionally approve drugs that are viewed as filling unmet medical needs with less than the usual evidence that they work. The drug’s approval was based on studies that showed it killed bacteria more quickly than a control group taking the standard regimen, but it did not measure whether in the end patients actually fared better on bedaquiline. Johnson & Johnson will conduct larger clinical trials to investigate whether the drug performs as predicted.


In a statement responding to Public Citizen’s letter, a spokeswoman for Johnson & Johnson said the company was committed to supporting appropriate use of Sirturo and would “work to ensure Sirturo is used only where treatment alternatives are not available.”


Dr. Stoffels said the hope was that other new tuberculosis drugs would also be approved that, when used in combination with bedaquiline, could shorten and simplify the current standard of treatment. “That is still a long time away,” he acknowledged, but “this is a first step in a new regimen for TB.”


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Big in 2012, but the Future Is Hazy for Bonds


The big story in the markets this year was not about stocks.


Americans sold off their stock mutual funds, the most popular way to invest in American companies, at the fastest clip since 2008, the year the financial crisis began. That occurred despite the fact that the stock market itself rose steadily; the benchmark Standard & Poor’s 500-stock index ended the year up 13.4 percent.


Investors have been opting instead for the assumed safety of bonds. Money has been steadily flowing into mutual funds holding bonds of all sorts for the last four years, but the pace accelerated this year. The percentage of household investments in bonds shot up to 26 percent from 14 percent just five years ago, according to Morningstar.


Entering the new year, a growing number of professional investors are betting that the craze for bonds has gone too far, perhaps dangerously so, as has been evident in the headlines from the year-end reports from large investment firms. “Bond PAIN in 2013?” Wells Capital Management’s chief strategist asked. “Caution: Turn Ahead,” BlackRock analysts wrote. “The inflection year,” said Bank of America.


This is not the first time that analysts have forecast an end to the decades-long rally in bond values. But previously many of the voices predicting it were pessimists who believed that investors would sell off their bonds when they lost faith in the American government’s ability to pay back its bonds, forcing the government and many other bond issuers to pay higher interest rates. When interest rates rise, older bonds with lower interest rates are worth less.


While those previous forecasts have proved expensively wrong, this year the forecasters are being joined by many economic optimists who argue that a strengthening American economy is likely to make investors willing to embrace the risks involved in stocks, luring them out of bonds. The question, they say, is only how quickly it will happen.


“Mathematically, it’s next to impossible to get the kind of returns on bonds you’ve seen over the last few years,” said Kate Moore, the chief global equity strategist at Bank of America.


When the turn does ultimately come, it is likely to cause pain for at least some of the people who have been investing in bonds in recent years.


“You don’t want to be the last one out the door when the trends turn,” said Rebecca H. Patterson, the chief investment strategist at Bessemer Trust. “All good things come to an end and we want to make sure we’re in front of it.”


Most of the talk of investors shifting money from bonds into stocks relies first on the assumption that politicians in Washington are able to resolve the current impasse over the so-called fiscal cliff, the automatic spending cuts and tax increases that will go into effect if Congress and President Obama cannot come to an agreement, and the coming debate over the nation’s debt ceiling. If the political discord continues, it could renew investor attraction to the safety of bonds and put off any shift into stocks.


But a number of surveys suggest that professional investors are already starting to prepare for a change. Hedge funds polled by Bank of America said that they had more of their portfolio allocated to stocks than at any time since 2006.


All but one of the 13 bank strategists tracked by Birinyi Associates expects stock markets to rise in 2013. When 2012 began, the same strategists were predicting a downturn in share prices. Even among mutual fund investors, there are signs that the flows out of stocks and into bonds have been slowing down recently.


The preference for bonds has already been costly for retail investors. Over the last year, most types of American bonds have returned less than an investment in the S.&. P. 500. When inflation is factored in, the benchmark 10-year Treasury security is delivering negative returns.


But many investors are still rattled by the 2008 financial crisis and the turbulence in the stock markets since then, which have led to wild swings. Over the last five years, all major types of American bonds have done better than leading stock indexes.


The Federal Reserve has been engaged in an aggressive effort to buy bonds and drive down interest rates. The long term goal of that program is to encourage banks to lend money and to drive investors out of bonds. But in the meantime, falling interest rates have made bonds more attractive. The Fed has said it wants to keep rates low until 2015, though it could let them rise sooner if the economy picks up faster than expected. The 10-year Treasury hovered near 4 percent in recent years but has stayed below 2 percent for much of 2012.


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Republicans back off plan to trim Social Security








WASHINGTON -- Senate Republicans backed off a demand to trim spending on Social Security by changing the cost-of-living adjustment, a proposal Democrats say was a nonstarter in talks to avert the so-called fiscal cliff.

Senate Minority Leader Mitch McConnell (R-Ky.) included the provision to move to a “chained CPI” -- an alternative measure of inflation -- in his offer Saturday evening. It was, aides cautioned, not the only sticking point that held up talks Sunday, with just over a day left for lawmakers to act to prevent automatic spending cuts and tax hikes.

But soon after the idea became public, Republican senators began distancing themselves from it.

QUIZ: How much do you know about the fiscal cliff?


"I'm not a fan," said retiring Sen. Olympia Snowe (R-Maine) as she left a closed-door meeting of the party caucus. "I don't think it should be part of it, and I think there are others who shared that view."

Sen. John McCain (R-Ariz.) said he supported the idea in theory, but that it should have never been offered as part of current talks, which are focused narrowly on tax rates.

Asked why his party leader made the proposal, McCain responded bluntly: “Damned if I know.”

“It’s a very bad, losing proposition,” McCain said. “What [Democrats] are saying now is, ‘Republicans want to preserve tax breaks for rich people and give up seniors’ Social Security.’ That’s the argument they’re using. Now whether it’s valid or not, it’s a winning argument. It should be off the table. And I think most Republicans believe it should be off the table.”

In the last offer he made to House Speaker John A. Boehner, President Obama had included the chained CPI as part of a larger deal that would have also included asking Republicans to agree to raise the debt ceiling for two years. But lawmakers now have all but written off the likelihood of that kind of large-scale “grand bargain.” Instead, they are working simply to prevent a year-end tax increase for nearly all Americans.

“I’ve supported chained CPI as part of a grand bargain, but this is no grand bargain,” said Sen. Kent Conrad (D-N.D.).


michael.memoli@latimes.com


twitter.com/mikememoli






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Purported photo of new BlackBerry phone with QWERTY keyboard leaks









Title Post: Purported photo of new BlackBerry phone with QWERTY keyboard leaks
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