AAII Survey: Would You Invest $10,000 in the Stock Market Right Now?

 

 It seems that the U.S. stock market has moved passed December’s abysmal performance, at least for now. Nearly half-way through January, the iShares Dow Jones U.S. ETF (IYY) is up nearly 11% from its Christmas Eve low. In fact, through the close on January 9, the Dow Jones industrial average and S&P 500 index had logged their…

The Myths and Realities of Retirement Planning

 

 Today, pension and Social Security benefits are not quite what they once were, financial institutions and insurance companies have become a concern and require close scrutiny, and health care costs seem to be rising out of control. With all of these scenarios continuing to be played out, wise planning is essential. This article will deal…

Brokers Announce New Stock Exchange – What We Know

 

  A new stock exchange was announced on Tuesday. Normally, this would not be particularly noteworthy for most individual investors. What differentiates the Members Exchange (MEMX) is who the founding members are: discount brokers Charles Schwab, E*Trade, Fidelity Investments and TD Ameritrade. Joining them are full-service brokers Bank of America Merrill Lynch, Morgan Stanley and…

Two Questions With Daniel Crosby

 

 In this bonus audio, psychologist and behavioral finance expert Daniel Crosby explains his preference for a rule-based, low-turnover approach to investing. He then shares the biggest lesson he’s learned over the course of his career. You can see Crosby’s full interview in the January 2019 AAII Journal: Steps You Can Take to Reduce the Risk…

Nearly Half of Investors Expect an Increase in the S&P 500 in 2019

 

 Last week’s Sentiment Survey special question asked AAII members how big of a percentage gain or loss the S&P 500 index will realize in 2019. Just under 45% of respondents expect an increase, though about half of them anticipate gains of 5% or less. Economic growth, earnings growth and the possibility of a resolution to…

AAII Sentiment Survey: Pessimism Plunges

 

 Pessimism among individual investors, which had been holding at a high level, plunged to its lowest level in more than three months in the latest AAII Sentiment Survey. Both bullish and neutral sentiment rose strongly. Bullish sentiment, expectations that stock prices will rise over the next six months, rose 5.4 percentage points to 38.5%. This…

Reviewing Readers’ Predictions for 2018, Looking Ahead to 2019

 

 This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Financial Literacy Tied to Greater Retirement Savings An analysis of employee retirement plans found evidence supporting a link between greater financial literacy and greater retirement wealth. Those who are more literate about financial and investment concepts allocate more to stock funds, own portfolios with higher…

Revisiting 2018’s Buys

 

 AAII Journal Editor Charles Rotblut revisits two of last year’s “Buys of the Week” that went on to rise in price: Procter & Gamble Co. (PG) and America’s Car-Mart Inc. (CRMT). He also explains to Chuck Jaffe how the underlying fundamental trends worsened for Magellan Health Inc. (MGLN) after he called a stock a “Buy”…

Fit for All Seasons: Managing and Monitoring Your Portfolio

 

 Portfolios occasionally get away from investors and become financial beasts. You may have one of these creatures in your file cabinet: Your portfolio may be something you started long ago and added to sporadically over the years, never looking very closely at these investments individually after your initial interest or considering how the individual investments…