“Enhanced” Index Funds: Can They Beat the Market?

 

 John “Jack” Bogle, founder and former chairman of the Vanguard Group and father of the index mutual fund, passed away this week at the age of 89. Here is an article he contributed to the AAII Journal in 2007, which has been edited to reflect new data. Since the inception of the first index mutual fund…

AAII Survey: Investors’ Outlook for U.S. Economy

 

 The U.S. stock market has been enjoying a resurgence after December’s sell-off. Since their Christmas Eve lows, the Dow Jones industrial average has rebounded 13.4%, the S&P 500 index is up 13.6% and the Nasdaq composite has added 15.6% through the close on January 18. While investors shouldn’t worry too much about upside volatility, the…

A Few Personal Thoughts in Remembrance of John Bogle

 

  As you have likely heard, Vanguard founder John (“Jack”) Bogle passed away yesterday. He was 89. Bogle not only founded the mutual fund giant Vanguard, but his influence on the world of investing will be felt for generations to come. This week, I’m going to share some of my thoughts and memories of him….

Investors Foresee 2019 Stock Prices Influenced by Trade and Politics

 

 This week’s Sentiment Survey special question asked AAII members what they thought would most influence the direction of stock prices in 2019. Nearly tied were trade (38% of all respondents) and Washington politics (37%). Responses regarding trade focused mainly on China, with some AAII members saying it depends on whether a settlement is reached. Responses…

AAII Sentiment Survey: Pessimism Rebounds

 

 Pessimism about the short-term direction of the stock market among individual investors rebounded in the latest AAII Sentiment Survey. Both optimism and neutral sentiment fell back below their respective averages. Bullish sentiment, expectations that stock prices will rise over the next six months, pulled back by 4.9 percentage points to 33.5%. Optimism is below its…

The Myths and Realities of Retirement Planning

 

 The Mathematics of Retirement Portfolios This article deals with several important retirement questions: “How much money do I need in my investment portfolio at the start of retirement?” and “How much can I safely withdraw from my investment portfolio during the retirement years?” A Do-It-Yourself Approach to Target Date Retirement Investing Target date mutual funds…

Revisiting 2018 Sells

 

 AAII Journal Editor Charles Rotblut revisits two of last year’s “Sells of the Week” that went on to decline in price: United States Steel Corp. (X) and Vera Bradley Inc. (VRA). He also explains to Chuck Jaffe how the underlying fundamental trends improved for Helen of Troy Ltd. (HELE) after he called a stock a…

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…