BUY OF THE WEEK 2/17/2015

Posted on February 17, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why NVIDIA Corp. (NVDA) is his “Buy of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.

Audio url: Buy of the week




The February 2015 passing company lists and performance data is now available on-line.

Posted on February 13, 2015 | Stock Screens

YTD Return of Top Performers: Foolish Small Cap 8 11.3% — Stock Market Winners 2.1%

Read more »



February 2015 AAII MODEL PORTFOLIOS UPDATED: Love Is in the Air, But No Valentine for Stocks

Posted on February 13, 2015 | Model Portfolios

We may be approaching the season of love, but all is not a bed of roses in the stock market. The S&P 500 index’s total return was -3.0% in January. However, large-cap stocks were not alone in struggling through January: Cupid’s arrow also failed to strike small-cap stocks, as the S&P SmallCap 600 index’s total return was -3.5% in January.

The Model Fund Portfolio saw a decline in January, losing 2.4%, while the Model Shadow Stock Portfolio, which invests in micro-cap value stocks, lost 4.4% last month.

The Model Shadow Stock Portfolio’s 4.4% decline for the month trailed one of its comparison benchmarks and beat the other: The Vanguard Small Cap Index (NAESX) lost 2.2% and the DFA US Micro Cap Index fund (DFSCX) lost 4.9% in January. As we have just completed the first month of 2015, year-to-date returns are the same as one-month returns. Since its inception in 1993, the Model Shadow Stock Portfolio has a compound annual return of 16.5%, while the Vanguard Total Stock Market Index fund (VTSMX) has gained 9.4% annually over the same period.

Read more »



Don’t Judge Apple’s Freshness by its Record Market Cap

Posted on February 13, 2015 | Dividend Investing

This week, Apple Inc. (AAPL) achieved what no other publicly traded corporation has ever done before: Its market capitalization reached and rose above $700 billion.

Read more »



The Price of Uncertainty

Posted on February 13, 2015 | Stock Superstars Report

The reason why is twofold. Investors dislike uncertainty. When a company’s outlook becomes murkier, investors demand more compensation in terms of a lower share price.

Read more »



Health Care Stocks Favored Among Investors

Posted on February 12, 2015 | AAII Survey

This week’s Sentiment Survey special question asked AAII members what sectors or industries they like right now. More than 40% of all respondents said health care (including pharmaceutical and biotech stocks). Technology and energy were a distant second and third, picked by 23% and 22% of all respondents, respectively. Financial stocks were fourth, named by 15% of all respondents.



AAII Sentiment Survey: Neutral Sentiment Surges

Posted on February 12, 2015 | AAII Survey

The percentage of individual investors describing their short-term outlook for stocks as “neutral” surged to its highest level since last summer. The sharp rise occurred as pessimism plunged.

Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 4.5 percentage points to 40.0%. The historical average is 39.0%.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, surged by 7.6 percentage points to 40.0%. This is the largest amount of neutral sentiment since July 24, 2014 (40.4%). The jump puts neutral sentiment above its historical average of 30.5% for the sixth consecutive week.

Bearish sentiment, expectations that stock prices will fall over the next six months, continued its recent volatility by falling 12.1 percentage points to 20.3%. The plunge puts pessimism at a six-week low. The historical average is 30.5%.

Neutral sentiment is at an unusually high level. The typical range of readings over the life of the survey is 22.1% to 39.3%. High levels of neutral sentiment have historically been followed by better-than-average gains in the S&P 500, as I explained in the June 2014 AAII Journal. This said, bullish sentiment was at an unusually high level last month and such readings have historically been followed by smaller-than-average gains in the S&P 500.

A combination of recent price volatility and fourth-quarter earnings reports have contributed to the recent swings in both bullish and bearish sentiment registered by our survey over the past few weeks. Keeping AAII members encouraged is the overall upward momentum of stock prices, comparatively low energy prices, earnings growth and sustained economic expansion. Causing other members to be cautious or pessimistic are disappointing earnings or guidance from certain companies, geopolitical events, the impact of lower oil prices on energy stocks, a sense that prevailing valuations for stocks are too high, the pace of economic growth and worries that an even larger decline in stock prices could occur.

This week’s AAII Sentiment Survey results:

  • Bullish: 40.0%, up 4.5 percentage points
  • Neutral: 39.7%, up 7.6 percentage points
  • Bearish: 20.3%, down 12.1 percentage points

Historical averages:

  • Bullish: 39.0%
  • Neutral: 30.5%
  • Bearish: 30.5%

The AAII Sentiment Survey has been conducted weekly since July 1987 and asks AAII members whether they think stock prices will rise, remain essentially flat or fall over the next six months. The survey period runs from Thursday (12:01 a.m.) to Wednesday (11:59 p.m.). The survey and its results are available online at: http://www.aaii.com/sentimentsurvey.



Sell OF THE WEEK 2/11/2015

Posted on February 11, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Walgreens Boots Alliance (WBA) is his “Sell of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.

Audio url: Sell of the week





BUY OF THE WEEK 2/10/2015

Posted on February 10, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Union Pacific Corp. (UNP) is his “Buy of the Week” on the MoneyLife Radio Program. MoneyLife is a daily personal finance show that sorts through the financial clutter to bring you the information you need to lead the MoneyLife.

Audio url: Buy of the week




Buying Growth Cheaply and Reinvesting; plus the February Monthly Report

Posted on February 6, 2015 | Dividend Investing

We are buying growth on the cheap this week with the new addition to the DI

Read more »



« Newer EntriesOlder Entries »