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Common Investor Mistakes & Other Insights from John Bogle

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

 

Should fund managers let cash build in the absence of opportunities, or should they remain fully invested at all times? While most mutual fund managers are required to stay invested, some have the flexibility to raise their cash allocations, raising an allocation dilemma for shareholders.

John “Jack” Bogle founded the Vanguard Group of mutual funds. In this conversation with AAII Journal editor Charles Rotblut, Bogle speaks about the common mistakes he’s seen investors make, high-frequency traders and his concerns about the ownership structure of most mutual fund companies.

 

It is highly likely that you have savings or retirement money tucked away in a money market mutual fund (MMF), or maybe more than one. Following the 2008 financial crisis, there has been debate about how much regulatory change is needed, including whether floating net asset values should be required.

 

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 criteria that can help investors better understand and select investments to fill their portfolios? This article helps answer some of those questions.

 Our Member Question for this week is:

 

Do you believe that any of the following global fixed-income markets are in bubble territory?

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Vote to answer this week’s Special Question: If you are invested in fixed-income instruments, has your exposure/allocation changed over the last year? If so, how, and what was the motivating factor?

Last Week’s Results:

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Last week we asked our readers whether they currently use a robo-advisor or are thinking of using one. The results are discussed at the AAII Blog.

The Individual Investor’s Guide to the Top Mutual Funds 2016

AAII’s annual mutual fund guide provides information and performance statistics on more than 730 funds. Our research shows that expenses for mutual funds fell from last year. Of the 71 category averages tracked in both 2014 and 2015, 57 categories saw a decline in average expense ratio, compared to 14 categories with increased expenses.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.