February 2014 AAII Model Portfolios Updated – Market Pulls Back to Open the Year

Posted on February 14, 2014 | Model Portfolios

After pulling back to begin 2014, it seems that the market has stabilized slightly and is in need of a catalyst to spur any movement in either direction. While our recovery seems to be ongoing, the improvements have been slow, especially in the labor markets. We have now had two months of weak jobs growth. And although the unemployment rate is decreasing, there are still a record number of long-term unemployed as well as underemployed workers. On a positive note, however, we will not be seeing a repeat of 2013’s gridlock on the debt ceiling. The Republican-controlled House passed a “clean” bill to increase the debt ceiling, meaning that the bill did not include any other demands. It is almost certain to pass the Democrat-controlled Senate. Additionally, new Federal Reserve Chair Janet Yellen spoke before Congress, highlighting the still-weak labor market. She will likely continue slowly tapering government bond-buying while keeping interest rates near zero.

AAII’s Model Portfolios were not able to escape the weakness of the overall stock market last month. During January, the Model Shadow Stock Portfolio lost 7.6%, underperforming both the Vanguard Small Cap Index fund (NAESX), which lost 2.1%, and the DFA US Micro Cap Index fund (DFSCX), which fell 4.4%. The Model Shadow Stock Portfolio has a compound annual return of 17.8% from its inception in 1993, while the Vanguard Total Stock Market Index fund (VTSMX) has gained 9.1% annually over the same period.

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January 2014 AAII Model Portfolios Updated – Model Portfolios Finish a Strong Year

Posted on January 15, 2014 | Model Portfolios

The year 2013 was one of the strongest for both of the model portfolios. The economy has been generally trending in the right direction. Unemployment is dropping while companies seem to be growing again. Since the “Great Recession,” the economy has been boosted by unprecedented stimulus measures put in place by the Federal Reserve. In early 2014, the Federal Reserve will begin its “tapering” program, meaning that it will slow down its monthly bond buying. The rate of the tapering will be slow and, judging by recent stock market activity, investors seem to believe that the economy is strong enough to withstand the pullback from easy money.

For December, the Model Shadow Stock Portfolio finished the year on a high, gaining 3.5% and outperforming the Vanguard Small Cap Index fund (NAESX), which gained 2.6%, and the DFA US Micro Cap Index fund (DFSCX), which was up 1.9%. The Model Shadow Stock Portfolio finished the year up an incredible 61.0%, well ahead of the Vanguard Small Cap Index fund, which has gained 37.6%, and the DFA US Micro Cap Index fund, which is up 45.1%. The Model Shadow Stock Portfolio has a compound annual return of 18.3% from its inception in 1993, while the Vanguard Total Stock Market Index fund (VTSMX) has gained 9.3% annually over the same period.

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December 2013 AAII Model Portfolios Updated

Posted on December 13, 2013 | Model Portfolios

1-Year Returns as of 11/30/13: AAII Fund Portfolio 27.5% — AAII Shadow Stock Portfolio 61.4%

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November 2013 AAII MODEL PORTFOLIOS UPDATED

Posted on November 15, 2013 | Model Portfolios

1-Year Returns as of 10/31/13: AAII Fund Portfolio 27.6% — AAII Shadow Stock Portfolio 55.7%

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October 2013 AAII Model Portfolios Updated

Posted on October 15, 2013 | Model Portfolios

1-Year Returns as of 9/30/13: AAII Fund Portfolio 21.7% — AAII Shadow Stock Portfolio 56.4%

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September 2013 AAII Model Portfolios Updated

Posted on September 13, 2013 | Model Portfolios

1-Year Returns as of 8/31/13: AAII Fund Portfolio 19.4% — AAII Shadow Stock Portfolio 49.8%

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August 2013 AAII Model Portfolios Updated

Posted on August 15, 2013 | Model Portfolios

1-Year Returns as of 7/31/13: AAII Fund Portfolio 27.3% — AAII Shadow Stock Portfolio 76.6%

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July 2013 AAII Model Portfolios Updated

Posted on July 15, 2013 | Model Portfolios

1-Year Returns as of 6/30/13: AAII Fund Portfolio 20.1% — AAII Shadow Stock Portfolio 63.3%

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June 2013 AAII Model Portfolios Updated

Posted on June 15, 2013 | Model Portfolios

1-Year Returns as of 5/31/13: AAII Fund Portfolio 27.2% — AAII Shadow Stock Portfolio 62.2%

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May 2013 AAII Model Portfolios Updated

Posted on May 15, 2013 | Model Portfolios

1-Year Returns as of 4/30/13: AAII Fund Portfolio 17.6% — AAII Shadow Stock Portfolio 38.6%

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