AAII’s Top 10 Articles for October


AAII’s Top 10 Articles for October

An in-depth look at the most commonly used financial ratios used for analyzing a company. The article includes a downloadable spreadsheet that automatically calculates these ratios using financial statement inputs you provide.

This article has generated 12 comments.

Here’s a primer on 10 of the most common and vital economic indicators. Even if you don’t follow these reports yourself, it is helpful to know where the “experts” are drawing their opinions from. If you do peruse these reports, remember that data can change rapidly and that broad trends are not judged by one isolated economic data point.

This article has generated 12 comments.

Valuing a stock or company is one of the most difficult tasks in investing. However, determining whether a stock is trading at an attractive valuation is paramount to investment success. The dividend discount model is one of the many methods used to determine fair value. This article delves into some of the challenges associated with calculating “intrinsic” value using this model.

This article has generated 8 comments.

Whether the interest rate movements are caused by Federal Reserve actions, economic conditions or inflation fears, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values. Here are some simple guidelines for judging the price volatility of your bonds.

Earnings, dividends and growth rates are useful figures in investment analysis. However, like water to humans, there is an underlying element essential to the survival and success of any firm—cash flow. This installment of the financial statement analysis series discusses the corporate cash flow statement, providing an in-depth look at its sections and explaining what the line items mean.

This article has generated 10 comments.

When securities markets swoon and apprehensive investors bail out of their holdings, they console themselves with deductions for capital losses when it comes time to file taxes. But long-standing rules limit deductions for losses on sales or redemptions of shares of individual stocks, bonds, mutual fund shares and exchange-traded funds (ETFs).

This article has generated 10 comments.

Many individual investors wish to buy bonds to achieve a secure cash flow and to reduce their risks in the stock market. However, with interest rates at a low level, some investors are concerned that after they purchase bonds, interest rates will rise and their bonds will decline in value. We examine the validity of this concern, certain alternatives to bonds and our proposed solution to low-interest rates. This article proposes a bond ladder of individual bonds structured to take into account your financial needs and objectives. The bond ladder will finesse the possibility of rising interest rates and will also enhance your appreciation of the value of cash flow and power of compound interest.

This article has generated 19 comments.

This article in a three-part series on claiming Social Security benefits discusses claiming strategies for married couples. The good news for a couple is that they can often add more to their cumulative lifetime benefits than a single individual can by using a smart claiming strategy. The bad news is the claiming decision is much more complex. Much of the complexity revolves around the rules governing spousal benefits and survivor’s benefits. Keep in mind, however, that the U.S. Congress may make changes at its discretion.

 This article has generated 22 comments.

The question every investor wants to know is: How well am I doing? Although some people are satisfied simply watching the dollars grow, most investors want that translated into a performance figure. A look at two methods.

You worked hard to build your nest egg. You saved, invested wisely and were careful to manage the myriad of risks that threatened your life’s savings. Having invested so much time, effort and sacrifice into getting where you are, it only makes sense that you would like to pass your life’s work on to your loved ones with the least amount of tax and government interference. There are well-established tools to ensure that your financial legacy reaches the intended recipients.

This article has generated 28 comments.

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