The September 2018 AAII Journal is Now Available Online

COVER ARTICLE Identifying and Screening for Vice and Virtue Stocks By Charles Rotblut, CFA Using so-called sin and ESG stocks as examples, we show how to use thematic approaches to identify potentially attractive stocks.     EDITOR’S NOTE Editor’s Note By Charles Rotblut, CFA Just before we went to press, two things were happening in…

 

Actions to Take During the Five Years Prior to Retirement

Actions to Take During the Five Years Prior to Retirement Transitioning to retirement from a working career is a challenge for many people. To help, The New York Times interviewed financial advisers, economists and retirees to create what they described as a “five-year countdown to retirement.” We’ll share their suggestions along with a few comments…

 

You CAN Lose With Bonds

Dividend Safety Signs and Warning Flags Many investors have sought shelter from the stock market storm in more mature dividend-paying companies since the income from these firms provides at least some positive return in an otherwise bleak environment. What signs can you look for that indicate the safety of a company’s dividend payment stream? Choosing…

 

How Many Stocks Do You Need to Be Diversified?

Diversifying Through Reinsurance and Marketplace Lending Interval Funds With equity valuations at historically high levels and bond yields at historically low levels, investors are searching for alternatives to the traditional 60% stock/40% bond portfolio. Alternative investments such as reinsurance and marketplace lending provide diversification through exposure to different forms of risk. Observations From Decades of…

 

Stock Buybacks Are Being Maligned

Stock buybacks have been the topic of discussion lately. Not from an investment strategy perspective, but more so from the perspective of what corporations should be doing with their cash. This is not surprising given the tax cuts, strong corporate earnings and the ongoing conversations surrounding worker pay. While some of the arguments may seem…

 

Assessing the Risk of a Mutual Fund

Sector Classification Change Could Alter Some ETFs A shift in sector and industry classifications will impact exchange-traded funds (ETFs) and mutual funds that target the affected industries and sectors. The change could also result in the renaming of some funds in addition to the potential changes to holdings and the weightings of various stocks within…

 

Inflation or Slowing Economic Growth: Which Do You Fear More?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Inherited IRA Rules for Spouses, Heirs and Trusts Inherited IRAs have unique traits and do not follow all the same rules as traditional individual retirement accounts and Roth IRAs. Though some similarities exist, the applicable rules are dependent on whether the new owner of…

 

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…