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

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Positive Surprises Matter, But Some Want More

Posted on February 6, 2015 | Stock Superstars Report

Earnings estimates always take the spotlight each earnings season, with many market participants focused on how a company has performed relative to expectations. Within the SSR portfolio…

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Stronger Dollar Negatively Influencing Some Investor Attitudes

Posted on February 5, 2015 | AAII Survey

This week’s Sentiment Survey special question asked AAII members how the stronger dollar is influencing their sentiment towards companies with international operations. More than a third of all respondents (36%) said it is having a negative impact. Several of these individual investors said the stronger dollar is creating a headwind for corporate earnings or is causing them to be more selective about which stocks they buy. About 29% said the stronger dollar isn’t having an effect. Some of these respondents said they do not invest in foreign companies or view the currency fluctuations as part of a normal, cyclical trend. Slightly more than 10% of respondents said the stronger dollar is having more of a company-specific than a broad market impact on their sentiment.

Here is a sampling of the responses:

  • “It does not affect my thinking. This is just a cyclical change. Soon enough fortunes will be reversed.”
  • “Makes me less likely to buy or add to [shares of companies with international operations].”
  • “Guarded. Some are okay and some I would avoid.”
  • “I try not to invest in international companies.”
  • “[Companies with international operations are going to take hit to profits. Their share price will go down as a result.”
  • “No change. I have a longer-term view.”


AAII Sentiment Survey: Pessimism Jumps, Optimism Plunges

Posted on February 5, 2015 | AAII Survey

Pessimism among individual investors jumped, while optimism fell to levels not seen in about four months, according to the latest AAII Sentiment Survey. The moves reversed the changes recorded in last week’s survey results.

Bullish sentiment, expectations that stock prices will rise over the next six months, plunged 8.7 percentage points to 35.5%. Optimism was last lower on October 2, 2014 (35.4%). This is the second time in three weeks, but just the fourth time in the past 26 weeks, that optimism is below its historical average of 39.0%.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, declined 1.4 percentage points to 32.1%. Even with the decline, neutral sentiment is above its historical average of 30.5% for the fifth consecutive week.

Bearish sentiment, expectations that stock prices will fall over the next six months, reversed last week’s drop and surged by 10.0 percentage points to 32.4%. This is the largest amount of pessimism recorded by our survey since October 16, 2014 (33.7%). It is also the second time in three weeks, but just the fifth time in the past six months, that bearish sentiment is above its historical average of 30.5%.

The 3.1 percentage-point difference between bullish and bearish sentiment is the narrowest spread since July 31, 2014 (0.0). The bull-bear spread was last negative on August 7, 2014 (-7.3), when pessimism exceeded optimism.

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, falling 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 falling 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: 35.5%, down 8.7 percentage points
  • Neutral: 32.1%, down 1.4 percentage points
  • Bearish: 32.4%, up 10.0 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 2/4/2015

Posted on February 4, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Greif, Inc. (GEF) 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 2/03/2015

Posted on February 3, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Reliance Steel & Aluminum (RS) 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 Individual Investor’s Guide to the Top Mutual Funds 2015

Posted on February 3, 2015 | AAII Journal

The returns realized by mutual fund shareholders in 2014 depended significantly on the categories they chose and, at least on the domestic equity front, whether they went with an active or a passive fund.

We bring this up because a significant part of a fund’s returns are influenced by the performance of the category it operates in. For example, the average energy fund plunged 18.0% last year. The culprit: oil. Oil prices fell from $105.37 per barrel on June 30, 2014, to $53.27 per barrel on December 31, 2014. Fund managers required by their funds’ objectives to invest in energy stocks in their portfolios could do nothing but sit and grimace.

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AAII WEEKLY FEATURES 2/3/2015

Posted on February 3, 2015 | Weekly Features

Investor-Update

This week’s AAII Weekly Features has been updated.
View this week’s Top AAII Articles, Featured Stock Screen and Member Question.

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