Increasingly, Just One Analyst Is Behind a Stock’s Long-Term Earnings Forecast

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, using AAII’s Stock Investor Pro stock screening and database…

 

SEC to End Five-Cent Spreads on Small-Company Stocks

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 smaller companies. It was originally scheduled to expire on October 2, 2018….

 

Mr. Market Has Reverted Back to a Calm State

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 time in five years that…

 

Helpful Steps My Late Father-in-Law Took

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 father-in-law passed last week. Les was…

 

What You Can Expect at the AAII Conference

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 never would have made had I simply stayed in my office. Those…

 

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…

 

Selecting Stocks From a Screen

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 grow profits and are projected to continue doing so…