Mutual Funds

This article originally appeared in the June 2014 issue of the AAII Journal. Many articles exist on how to use financial data to pick solid mutual funds. But what comes after screening based on quantitative metrics? What about the other side of fund selection—the qualitative...

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This article originally appeared in the September 2014 issue of the AAII Journal. There is a large body of research showing that investors depend on emotions and anecdotal information when making decisions. You are no doubt aware of this and are familiar with the resulting cognitive...

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This article originally appeared in the July 2015 issue of the AAII Journal. We’ve all heard that investors move and think like one big crowd, but there are really two crowds. The main herd, and the “anti-herd”—the main herd’s near mirror image. The media often call them...

mutual-funds-splash-rounded

This article originally appeared in the September 2014 issue of the AAII Journal. Like mutual funds, exchange-traded funds (ETFs) are a way for investors to participate in the stock, bond and commodity markets; achieve a diversified portfolio; and gain access to a broad array of...

The stock market has gotten off to a bad start this year, and to say Mr. Market is in a rotten mood today may be an understatement. Uncertainty about the Chinese economy and falling oil prices are to blame. For all the growth China has experienced, its economy and its stock market...

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This article originally appeared in the April 2015 issue of the AAII Journal. The Wall Street machine acts as a huge distraction that creates noise and confusion in the markets—and in our own brain chemistry—that makes long-term investing more difficult. Guy Spier, manager...

SentimentSurvey

Pessimism about the short-term direction of stock prices rebounded strongly as neutral sentiment pulled back from a 13-year high in the latest AAII Sentiment Survey. Bullish sentiment fell, extending its streak of unusually low readings. Bullish sentiment, expectations that stock...

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This article originally appeared in the May 2015 issue of the AAII Journal. Experience is the best teacher. How true! I have been a professional investment manager for 62 years, mainly at David L. Babson & Co., where I managed portfolios for all kinds of individual and institutional...

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This article originally appeared in the June 2015 issue of the AAII Journal. Robert Shiller is a Nobel laureate and the Sterling Professor of Economics at Yale University who studies market fluctuations and investor behavior. In April 2015, he spoke to AAII about stock and bond...

Mutual Funds

This article originally appeared in the November 2014 issue of the AAII Journal. About 70% of active equity mutual funds are closet indexers that generally fail to beat the market after fees. On the other hand, the other 30% of funds outperform on average. Thus, the task is to...