U.S. Memo Details Views on Killing Citizens in Al Qaeda


WASHINGTON — Obama administration lawyers have asserted that it would be lawful to kill a United States citizen if “an informed, high-level official” of the government decided that the target was a ranking figure in Al Qaeda who posed “an imminent threat of violent attack against the United States” and if his capture was not feasible, according to a 16-page document made public on Monday.


The unsigned and undated Justice Department “white paper,” obtained by NBC News, is the most detailed analysis yet to come into public view regarding the Obama legal team’s views about the lawfulness of killing, without a trial, an American citizen who executive branch officials decide is an operational leader of Al Qaeda or one of its allies.


The paper is not the classified memorandum in which the Justice Department’s Office of Legal Counsel signed off on the killing of Anwar al-Awlaki, a radical Muslim cleric who was born in New Mexico and who died in an American drone strike in Yemen in September 2011. But its legal analysis — citing a national right to self-defense as well as the laws of war — closely tracks the rationale in that document, as described to The New York Times in October 2011 by people who had read it.


The memo appears to be a briefing paper that was derived from the real legal memorandum in late 2011 and provided to some members of Congress. It does not discuss any specific target and emphasizes that it does not go into the specific thresholds of evidence that are deemed sufficient.


It adopts an elastic definition of an “imminent” threat, saying it is not necessary for a specific attack to be in process when a target is found if the target is generally engaged in terrorist activities aimed at the United States. And it asserts that courts should not play a role in reviewing or restraining such decisions.


The white paper states that “judicial enforcement of such orders would require the court to supervise inherently predictive judgments by the president and his national security advisers as to when and how to use force against a member of an enemy force against which Congress has authorized the use of force.”


It also fills in many blanks in a series of speeches by members of the Obama legal team about the use of force in targeted killings, including remarks by Attorney General Eric H. Holder Jr. at Northwestern’s law school in March. He asserted that the Constitution’s guarantee of “due process” before the government takes a life does not necessarily mean “judicial process” in national security situations, but offered little specific legal analysis.


Hina Shamsi, director of the American Civil Liberties Union’s National Security Project, called the paper “a profoundly disturbing document,” and said: “It’s hard to believe that it was produced in a democracy built on a system of checks and balances. It summarizes in cold legal terms a stunning overreach of executive authority — the claimed power to declare Americans a threat and kill them far from a recognized battlefield and without any judicial involvement.”


The release of the white paper comes as President Obama’s counterterrorism adviser and nominee as C.I.A. director, John O. Brennan, awaits a confirmation hearing before the Senate Intelligence Committee on Thursday. Pressure has been growing on the administration to make public, or at least provide the Intelligence Committees, with more of the secret legal documents.


On Tuesday, eight Democratic and three Republican senators, including some Intelligence Committee members, wrote to Mr. Obama asking for the legal opinions authorizing the killing of Americans. The letter followed one sent by Senator Ron Wyden, Democrat of Oregon, a member of the Intelligence Committee who has long sought access to the legal opinions.


The senators wrote that they needed the legal opinions to judge “whether the president’s power to deliberately kill American citizens is subject to appropriate limitations and safeguards.”


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Popular Windows app emulator Wine coming to Android







Great news for anyone who wants to bring more PC capabilities to their Android smartphone or tablet: The Next Web reports that popular Windows app emulator Wine will soon be coming to Android. According to The Next Web, chief Wine developer Alexandre Julliard has been working on porting the emulator to Google’s (GOOG) open source mobile operating system and started showing off how Wine would work on Android over the weekend in Belgium. Although The Next Web says that the port probably won’t be ready “for some time,” this will definitely be something to follow for Android fans who want to bring their favorite PC apps over to their mobile devices.


[More from BGR: iOS 6.1 untethered jailbreak now available for download, compatible with iPhone 5 and iPad mini]






This article was originally published on BGR.com


Linux/Open Source News Headlines – Yahoo! News





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What Football Game? Beyoncé Rocks the Superdome in Leather & Lace







Style News Now





02/03/2013 at 09:06 PM ET













One thing was certain going into Super Bowl XLVII: Beyoncé was going to put on a killer halftime show, and she was going to look amazing doing it. And if she practiced until her feet bled, there was no sign of it as she danced in her towering heels.


To strut out onstage during ‘Crazy In Love,’ the star wore an uncharacteristically demure belted lamé mini with wide lapels, but she quickly tore it away to reveal a leather bodysuit with a black lace skirt worn over her signature fishnets. She completed the look with thigh-highs and sexy black booties.


Destiny’s Child fans missing the trio’s epic matching outfits were given a treat when Kelly Rowland and Michelle Williams proved the rumors true, joining Beyoncé onstage for a medley that included ‘Bootylicious’ and ‘Single Ladies.’ Their costumes echoed Bey’s: Rowland wore a revealing V-neck Emilio Pucci bodysuit, while Williams was glam in a tough-girl ribbed leather mini.




And to ensure that Beyoncé’s hair was supremely whip-able (as demonstrated during ‘Baby Boy’ and ‘Halo’), stylist Kim Kimble gave her a “soft glam” look by curling it, then brushing out the curls and smoothing them with Kimble Hair Care Brazilian Nut and Acai serum. She sprayed it with L’Oréal’s classic Elnett hairspray to ensure it wouldn’t budge no matter what the superstar put it through.

Tell us: What did you think of Beyoncé’s Super Bowl outfit — and the Destiny’s Child reunion looks?

–Alex Apatoff

PHOTOS: VOTE ON MORE STAR STYLE HERE!




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Bullying study: It does get better for gay teens


CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.


The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.


The researchers said the same results likely would be found in the United States.


In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.


That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.


In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.


"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."


The study appears online Monday in the journal Pediatrics.


Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.


But the researchers said their results show the situation is more nuanced for young gay men.


In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.


The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.


Savage, who was not involved in the study, agreed.


"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.


Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.


"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.


Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.


"As you grow older, you become more accepting of yourself," Johnson said.


___


Online:


Pediatrics: http://www.pediatrics.org


It Gets Better: http://www.itgetsbetter.org


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Asian shares advance after U.S. jobs, ISM

TOKYO (Reuters) - Asian shares advanced on Monday, drawing momentum from U.S. data showing some promise of a credible recovery, supported by Federal Reserve's easing plans and solid manufacturing data from Europe and China.


The yen took a break from heavy selling against the U.S. dollar and the euro, but fell to its lowest since August 2008 against the Australian and New Zealand dollars early on Monday on confidence of bold monetary support from the Bank of Japan to overcome the country's stubborn deflation.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.6 percent after posting a weekly gain of 0.7 percent.


"Asian shares are likely to take the cues from the rise in U.S. equities and prices of risk assets are generally expected to face upward pressures," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory.


The Dow Jones industrial average <.dji> rose to 14,000 for the first time since October 2007 and the Standard & Poor's 500 Index <.spx> hit its highest point since December of that year.


U.S. data showed on Friday payrolls rose by 157,000 last month, with upward revisions for November and December, while the Institute for Supply Management said its index of national factory activity rose to its highest since April.


China followed with positive news over the weekend, saying growth in its official purchasing managers' index (PMI) for the non-manufacturing sector ticked up in January for the fourth straight monthly rise, confirming the world's second-largest economy was showing a modest recovery.


Resources-reliant Australian shares <.axjo> steadied after jumping 0.9 percent to a 21-month high on Friday. Positive economic news from China, Australia's largest export destination, usually boosts Australian investor sentiment.


South Korean shares <.ks11> were up 0.3 percent while Hong Kong shares <.hsi> added 0.7 percent.


NIKKEI MAY BE PEAKING


Japan's benchmark Nikkei stock average <.n225> rose 0.5 percent after climbing to a fresh 33-month high earlier as the yen declined. The index logged its 12th straight week of increases last week, the longest run of weekly gains since 1959. <.t/>


Nikkei has been moving in tandem with the yen's two-month-long losing streak with investors eyeing the change in the BOJ's top personnel in April for clues on the degree of the bank's reflationary policy.


"The Nikkei may be nearing its peak for now as we may get a specific name of the most likely candidate for the next BOJ governor soon. That may provide an opportunity to close long dollar/yen positions, while a firming yen will then likely spur investors to book profits on Japanese stocks," said Tetsuro Ii, the chief executive of Commons Asset Management.


The dollar eased 0.1 percent to 92.72 yen after scaling its highest since May 2010 of 92.97 on Friday, while the euro fell 0.3 percent to 126.32 yen, still near its loftiest since April 2010 of 126.97 touched on Friday.


In early Monday trade, the yen plunged to its lowest since August 2008 against both the Australian dollar, at 96.78 yen, and against the New Zealand dollar at 78.74 yen.


The euro inched down 0.1 percent to $1.3624, off Friday's 14-1/2-month peak of $1.3711 hit after data showed euro zone factories had their best month in January in nearly a year.


On Friday, the dollar index measured against a basket of key currencies fell to a 4-1/2-month low of 78.918 <.dxy>. The index was up 0.2 percent on Monday.


As economic optimism rose and concerns about the euro zone's debt difficulties eased, investors took on more risk.


Research provider TrimTabs Investment Research said on Saturday investors poured a record $77.4 billion in new cash into stock mutual funds and exchange-traded funds in January, surpassing the previous monthly record of $53.7 billion in February 2000.


In the oil market, tension across the Middle East put Brent crude on track to its biggest weekly gain since mid-November, and U.S. crude rose for an eighth straight week, although it eased 0.2 percent to $97.56 a barrel on Monday.


With the rise in equities on recovering appetite for riskier assets, safe-haven appeal waned, pushing up yields of U.S. Treasury bonds. The U.S. 10-year Treasury yield hit a nine-month high of 2.052 percent in Asia on Monday.


A weekly gauge of sentiment in the Japanese government bond market deteriorated sharply, remaining in negative territory for a fifth straight week as rising global appetite for risk sapped demand for bonds, the latest Reuters poll showed on Monday.


(Editing by Eric Meijer)



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India Ink: 'Lalla Roukh' at the Rose Theater


Richard Termine for The New York Times


Lalla Roukh Marianne Fiset and Emiliano Gonzalez Toro starred in this work presented by Opera Lafayette on Thursday at the Rose Theater.







On Thursday evening Opera Lafayette presented a graceful and witty production of Félicien David’s “Lalla Roukh” at the Rose Theater. This opéra-comique set in Mughal India had fallen into oblivion since its wildly successful premiere in 1862, well ahead of the wave of other French operas like Bizet’s “Pêcheurs de Perles,” Delibes’s “Lakmé” or Meyerbeer’s “Africaine.”




Operas like these, in which the West’s flirtation with distant locales is colored with condescension, can bring on a toothache in the stage director who has to choose between an unreconstructed eye-candy approach or a Splenda version that leaves an aftertaste of postcolonial embarrassment.


Here the director, Bernard Deletré, devised an unusual solution when he brought in an Indian fashion designer, Poonam Bhagat, and the exquisite Kalanidhi dance troupe choreographed by Anuradha Nehru to add vibrant touches of authenticity to the dress and movement of characters who otherwise seem less rooted in South Asia than in commedia dell’arte. The spoken dialogue was edited down to its dramatic essentials and delivered with great clarity by the glowing cast of singers, most of whom were native French speakers. Together with Ryan Brown, who conducted with a fine ear for flow and comic timing, they made a solid case for “Lalla Roukh” as an overlooked gem of more than historical interest.


The heroine is a princess from Delhi who travels to Bukhara to marry its king. On a mountain pass in Kashmir she is waylaid by a silver-tongued poet with whom she falls in love. She arrives at the court determined to throw over the royal match in favor of the penniless poet, but it turns out that he was in fact the king disguised to test Lalla Roukh’s heart.


The opera contains exquisite musical moments, like the ballet in Act I in which the chorus evokes the starry sky reflected in a clear mountain lake with filigree woodwind solos against caressing choral lines. The following ballet of bayadères is carried by lively rhythms on an array of exotic percussion instruments, here joined by the ankle bells of the dancers.


Although David’s Orientalism is never authentic, it is still rich in naturalistic touches. As a young man he spent two years in Cairo and his familiarity with non-Western modes comes through in finely wrought oboe solos, alluring chromatic vocal lines and, in one aria, pizzicato passages meant to imitate the sound of a guzla.


Marianne Fiset sang the title role with a glowing, well-supported soprano that brought out the Jane Austen-like independence and likability of her character. The tenor Emiliano Gonzalez Toro was outstanding as the poet-king Noureddin, bringing a scintillating array of nuances to a character who is by turns comic, regal and wistful. The role of Lalla Roukh’s quick-witted maid, Mirza, was sung by Nathalie Paulin with a honeyed soprano. Mr. Deletré, the director, stepped into the buffoonish role of Baskir, the king’s chamberlain, with conviction and comic abandon.


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Is it game over for Nintendo?






The Wii U is a bust (so far). And the legendary gaming company’s future is looking increasingly bleak


Nintendo had no choice but to go all in with the Wii U, the newest in a long line of ostensibly childhood-defining game consoles. Unfortunately, the company also inherited the weighty expectations of the original Wii — which, if you’ll remember, became a surprise hit when it debuted in 2006, or just two short years after the world was first introduced to a little-known senator named Barack Obama. But ever since the Wii U hit store shelves last November, sales have been disappointing. Now the company is dramatically lowering its forecasts for the future. 






Initial sales figures indicate that Nintendo has so far sold just 3.06 million Wii U game consoles, and anticipates moving just four million Wii U units through March — far below previous estimates of 5.5 million, predictions that weren’t even that optimistic to begin with. 


Initial reviews of the Wii U were mixed. Yes, it’s fun. But the console failed to offer a compelling reason for consumers to free up dusty shelf space alongside their Xbox 360s or PlayStation 3s. Some critics say the console is confused, and Nintendo didn’t know if it was targeting mature gamers fixated on first-person shooter games like Call of Duty and Borderlands, or more casual fans like the original Wii did with its motion-sensing nunchuck. Further complicating matters is a nimble new mobile industry, dominated by non-committal, take-anywhere games like Temple Run and Angry Birds


“Nintendo needs a change in strategy,” Michael Pachter, a gaming research analyst for Wedbush Securities, tells The New York Times. Even though Nintendo is an instantly recognizable brand the world over, the company still doesn’t license its gaming titles for other platforms (ever see Mario on an iPhone?). To make matters worse, on Thursday, Nintendo president Satoru Iwata said that the company has no intention of lowering the price of its $ 300 flagship gaming system anytime soon. “We were already offering it at a good price,” he said. 


That means Nintendo, unless it releases a best-selling breakout title soon (Zelda, perhaps? Super Smash Bros. Brawl?), will continue on its path toward an increasingly dark future. The company already had its worst year ever in 2011. Dramatic restructuring seems imminent.


Consoles — compared to phones, tablets, laptops, and many other gadgets — have a much slower product cycle. Manufacturers only press “reset” every couple of years so that game-makers aren’t constantly readjusting to new hardware.


For quickly aging dinosaurs like Nintendo, that means more plodding along. More disappointing forecasts. More reluctant critics. More lost opportunities to earn the trust of lifelong fans. More, more, more. (Or for Nintendo, less, less, less?)


“People have to try it to see it is fun,” Iwata said of the Wii U. Undoubtedly, it is.


But unfortunately for Nintendo, “fun” just isn’t good enough anymore.


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Busy Philipps Feels No Pressure to Bounce Back After Baby

Busy Philipps Body After Baby Pressure
David Livingston/Getty


Busy Philipps may be willing to dish out style advice to fellow expectant mamas — but she’s not about to start breaking out the postpartum weight loss lectures.


Currently pregnant with her second child, the Cougar Town star admits that while her celebrity status opens her up for public scrutiny, she’s not planning a big bounceback after baby.


“Like most things in this business, I think that you have to do what’s right for you and you can’t be too concerned about what some magazine is going to write about you,” Philipps, 33, tells HuffPost Celebrity.


“We’re in a business where a lot of people are blessed with pretty incredible bodies, that they work hard for or comes naturally, and not everybody has the same body.”

According to Philipps, staying healthy is priority during pregnancy and women “should be given a break” when it comes to packing on the extra pounds — especially by those dubious doctors!


“It’s interesting when people make comments about celebrities’ weight gain or lack of weight gain as if they’re a medical professional that’s treating that celebrity,” she notes. “Like, ‘This doctor does not treat Jessica Simpson, but thinks her weight is unhealthy.’ If you don’t treat her, then how do you know?”


After the arrival of daughter Birdie Leigh, now 4, the actress took her time regaining her post-baby bod — a journey, she says, lasted almost a year — preferring to instead instill a positive attitude (and approach) in her little girl.


“I wanted to be healthy for her and have a healthy body image so that she hopefully grows up to see that her self worth isn’t defined by how thin she is,” Philipps explains.


“Thrilled to be expecting another baby with husband Marc Silverstein, Philipps wasn’t sure if expanding their tight-knit trio was even in the cards for the couple. No one, however, was more ecstatic over the news than the big sister-to-be, whose wish is finally coming true.


“My daughter is very excited … it’s actually something that she has asked for for quite some time,” she says. “My husband and I were on the fence about whether or not we were going to add to our family, but now that we’re on our road, we’re really excited.”


– Anya Leon


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New rules aim to get rid of junk foods in schools


WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.


For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.


Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.


The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.


Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.


"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.


Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.


The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.


The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.


Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.


"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.


Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.


The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.


Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.


Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.


"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.


The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.


A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.


___


Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick


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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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