One-Third of Investors Not Concerned With Market Quickly Recouping Losses

 

 This week’s Sentiment Survey special question asked AAII members how important it is that the stock market recoup all of last year’s losses within the next few months. Slightly more than one-third of all respondents (36%) do not think this is very important. Many say they take a long-term view and don’t worry about short-term…

AAII Sentiment Survey: Optimism Back Above Average

 

 The percentage of individual investors expecting an increase in stock prices rebounded this week according to the latest AAII Sentiment Survey. Neutral sentiment declined while pessimism is slightly higher. Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 4.2 percentage points to 39.3%. Optimism is above its historical average…

Beating the Street With Shareholder Yield

 

 This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Beating the Street With Shareholder Yield Companies with meaningful dividend yields and growing dividends often represent undervalued investment opportunities, with the added bonus that the dividend yield often serves as some protection against price declines. Companies can also repurchase outstanding shares. When a company reduces…

AAII Survey: Investors React to Fed’s Decision to Slow Rate Increases

 

 Since 2015, the Federal Reserve has increased interest rates nine times. While those investing in interest-bearing instruments have applauded these increases, others, including President Trump, have railed against the central bank increasing interest rates too quickly. Following the last meeting of the Federal Open Market Committee (FOMC), Fed chairman Jerome Powell signaled that the central bank…

Your Returns May Be Anything but Average

 

  One argument underlying the notion of holding risky assets in long-term portfolios is time diversification. Time diversification holds that above-average returns tend to offset below-average returns over a long enough period. It’s based on the concept of reversion to the mean: Eventually periods of low and high returns converge back toward their average. The…

Investors’ Views Are Mixed on 2019 Market Sentiment So Far

 

 This week’s Sentiment Survey special question asked AAII members how they view the overall sentiment reflected by the market so far this year. Responses were very mixed. Just under a quarter of all respondents (24%) describe investors as being either cautious or uncertain. Many of these respondents point to the unknown outcomes of trade negotiations…

AAII Sentiment Survey: Neutral Sentiment Rises to a 7-Month High

 

 The percentage of individual investors describing their outlook for stocks as “neutral” is at a seven-month high. The latest AAII Sentiment Survey also shows a drop in optimism and an increase in pessimism. Bullish sentiment, expectations that stock prices will rise over the next six months, pulled back by 4.8 percentage points to 35.1%. Optimism…

Causes of Financial Stress

 

 This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Your Portfolio: Maintaining Perspective Given the recent bumps in the stock market, we revisit an article written in late 2008, during the last market meltdown to give you some perspective. Financial turmoil can prompt an emotional response that causes investors to flee stock holdings. But…

MoneyLife Radio Buy of the Week: U.S. Bancorp (USB)

 

 AAII Journal Editor Charles Rotblut explains to Chuck Jaffe why U.S. Bancorp (USB) is his “Buy of the Week” for February 12, 2019, 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…

Some Perspective on Buybacks Given Recent Criticism

 

  Buybacks have been put back into the spotlight as boogeymen. Earlier this week, Senators Chuck Schumer and Bernie Sanders wrote an op-ed in The New York Times attacking share repurchases. Among their accusations were that stock buybacks mostly benefit the wealthy and divert money from being spent on capital expenditures, salary increases and other worker benefits….