The August 2018 AAII Journal is Now Available Online

Feature Article: The Individual Investor’s Guide to Exchange-Traded Funds 2018 by Jaclyn N. McClellan Our expanded guide covers 542 exchange-traded funds, providing detailed return information and data as well as an update on the ETF industry.       Portfolio Strategies » Observations From Decades of Tracking Investment Newsletters by John Bajkowski , Charles Rotblut,…

 

The Origins of the AAII Model Shadow Stock Portfolio

AAII InvestoGraphic: Adjusting Overweight Positions Allowing a portfolio position to become oversized relative to your other holdings undermines the concept of diversification. This AAII InvestoGraphic offers guidance on how to pare down a position in a stock whose gains have caused it to have an outsized weighting relative to the other portfolio positions. The Model…

 

More Than a Quarter of Investors Cite Tariffs as Affecting Their Outlook on the Market

Last week’s Sentiment Survey asked AAII members what factors were most influencing their six-month outlook for stocks. More than a quarter of all respondents (28%) say tariffs and the possibility of a trade war. Politics were close behind, with 19% of respondents specifically mentioning President Trump and an additional 7% listing the political environment and/or…

 

AAII Sentiment Survey: Neutral Sentiment Stays Above 40%

The percentage of individual investors describing their short-term outlook for stocks as “neutral” stayed above 40% for a second consecutive week in the AAII Sentiment Survey. The latest results show a further decline in optimism and rise in pessimism. Bullish sentiment, expectations that stock prices will rise over the next six months, fell 3.1 percentage…

 

Retirement Planning Mistakes Investors Often Make

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Planning Mistakes Investors Often Make Planning for retirement is commonly focused on the accumulation of wealth. While building up savings prior to retirement is critical, having a plan for transitioning to and living in retirement is also important. It is in this second…

 

Using Cash and Short-Term Bonds to Avoid Taking Losses

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Analyzing a Stock by Its Dividend and Shareholder Yield One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is…

 

For Bucket Portfolios, the Devil Is in the Details

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Trinity Portfolio: Combining Diversification, Tilts and Trend-Following Cambria Investment Management’s Trinity Portfolio is named for the portfolio’s three core elements: 1) assets diversified across a global investment set; 2) tilts toward investments exhibiting value and momentum traits; and 3) exposure to trend-following. In…

 

AAII Weekly Digest: Making Sense of Mutual Fund Data

A Second Look at How Target Date Funds Change Their Allocations Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans. However, there remains confusion about how to use target date funds. This article offers an overview of…

 

The Impact of Saving Versus Return on Wealth

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Impact of Saving Versus Return on Wealth The dramatic impact on wealth from compound returns really starts to pick up after an investing period of 20 to 25 years. Older investors should place a bigger emphasis on saving more than on building aggressive…

 

How to Follow AAII’s Level3 Passive Portfolio

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Top Mutual Funds Over Five Years: Tech Takeover Technology funds lead this year’s list of the top funds, though two non-sector funds are also on the top-10 list. Guidance on How to Follow the Level3 Passive Portfolio The AAII Level3 Passive Portfolio is…