AAII Home AAII Blog

Yesterday’s 3.29% decline in the S&P 500 index was the biggest such move since February. Yet it only put the S&P 500 a mere 4.9% below its record closing high. If it felt like the drop was worse, there are two big reasons why. The first is the relative headline calm we’ve...

One fear many investors have is incurring a large drop in the stock market. “Major drawdowns,” as defined by AQR Capital Management, are those where prices drop by at least 20% from peak to trough. The investment firm counts 11 such drops as having occurred in the stock market...

Based on casual analysis, it seems there has been a decline in the number of analysts making long-term earnings forecasts on publicly traded stocks. When the subject was raised during a regular portfolio review meeting, we lacked the evidence to support or debunk this hunch. So,...

It didn’t receive much in the way of attention, but last week the U.S. Securities and Exchange Commission (SEC) announced its intention to end the pilot program testing five-cent bid/ask spreads. The program mandated minimum quotations and trading increments for stocks of certain...

On Tuesday, The Wall Street Journal observed in its morning briefing that “The S&P 500 has gone 53 trading days without a move of 1% in either direction, the longest such streak since January.” As of today’s close, the streak now stands at 56 days. This is just the fifth...

Special note: This commentary originally ran in March 2017. I received more feedback about it than any other Investor Update column I’ve written over the past eight years. Since many of you found it helpful and I’m out of the office this week, I decided to republish it. My...

I guess it was bound to happen sooner or later: A reporter asked me to comment on a tweet from President Trump. Two weeks ago, the president addressed quarterly earnings. Here are his exact words: “In speaking with some of the world’s top business leaders I asked what it is...

Those of you who regularly read my weekly commentary know that I attend conferences and other industry events. The presentations are generally informative, but it’s the personal interaction that’s the big draw for me. I’ve made numerous connections over the years, many I...

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...

I’ve long been a fan of stock screens. They filter a database to identify stocks with specific traits. A value screen may identify stocks trading at low price-earnings (P/E) ratios with above-average levels of return on equity (ROE). A growth screen can find stocks that consistently...