How AAII Builds and Presents Stock Screens

Year to date, the Oberweis Octagon screen leads all approaches tracked by AAII, up 42.9% through the end of July. Such a high return is very tempting when the market is up only 6.3% over the same period. But blindly chasing high returns without understanding the drivers and characteristics of a given approach is often…

 

Simple Steps to Overcome Information Overload

I have always thought it best to have many choices when buying something, selecting a mutual fund, or even making a decision. But as Charles Duhigg points out in his latest book, “Smarter Faster Better: The Secrets of Being Productive in Life and Business,” when people are faced with too much information they simply shut…

 

Are All Earnings Surprises Equal?

As we finish another quarterly earnings season, statistics show that companies are generally beating their EPS targets with ease, yet we are not really getting positive stock price reactions from these supposed positive earnings surprise. Positive earnings surprises occur when actual reported earnings are significantly above the forecasted earnings per share. Negative earnings surprises occur…

 

A Look at Relative Strength Measures

Just as a rising tide lifts all boats, a rising market tends to lift all stocks. Well, almost all stocks. Upward price individual stock performance during a strong market may represent only average performance while a minor stock price decline during a major bear market represents strong relative price performance. Price momentum is normally measured…

 

How Likely is a Market Downturn?

Would you rather purchase ground beef that contains 15% fat or that is 85% lean? Of course they are the same, but for most people, 85% lean ground beef sounds more attractive. That is why packages of ground beef or hamburger patties are presented or “framed” to emphasize the high level of “good” in the…

 

The Advantages of the Do-It-Yourself Approach to Investing in Stocks

With the right education and information, individual investors are fully capable of becoming effective managers of their own assets. If you have the time, interest and discipline, we truly believe that you can manage a stock portfolio that can outperform most mutual funds. Some investors should use mutual funds and ETFs to invest in equities….

 

David Bowie: Financial Renaissance Man

David Bowie, who died from cancer recently at the age of 69, will always be primarily remembered for his music, but he also made history as a pioneer in the world of finance. David Bowie is credited as the first musician to securitize the royalties from his music catalog into a 10-year note referred to…

 

Spaceship Earth

“I’ve often heard people say: ‘I wonder what it would feel like to be on board a spaceship,’ and the answer is very simple. What does it feel like? That’s all we have ever experienced. We are all astronauts on a little spaceship called Earth.” -R. Buckminster Fuller Spaceship Earth is more than a theme…

 

Rising Middle Class Provides Hope for Long-Term Peace

I had the pleasure of seeing a presentation recently by Herbert E. Meyer, who served as special assistant to the director of central intelligence and vice chairman of the CIA’s National Intelligence Council during the Reagan administration. Meyer is widely credited with being the first U.S. government official to forecast the Soviet Union’s collapse—a forecast…

 

Small-Cap Stock Trends

Investing is not always easy. A great deal of evidence supports the notion that over the long term, stocks of smaller companies tend to have greater returns than those of larger companies. To realize those higher long-term gains, however, you have to be willing to expect some periods of underperformance. You also have to be…