Sell OF THE WEEK 2/25/2015

Posted on February 25, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Diageo plc (DEO) 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





AAII WEEKLY FEATURES 2/24/2015

Posted on February 24, 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.

Read more »



BUY OF THE WEEK 2/24/2015

Posted on February 24, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why DR Horton (DHI) 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




Why Are Utility Stocks Powering Down?

Posted on February 20, 2015 | Dividend Investing

We cannot always identify a reason why a particular stock’s price has risen or fallen over a short-term period, but at times we do see patterns.

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Short-Term Uncertainties and Long-Term Trends

Posted on February 20, 2015 | Stock Superstars Report

We’ve been noticing the price volatility in airline stocks recently and believe it is related to the volatility of oil prices. As you know, fuel prices have a significant effect on an airline company’s profitability. In economic speak, fuel prices are known as an input.

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Winning the Game of Finance

Posted on February 19, 2015 | Investor Update

Investor-Update
Financial management is, in part, a game. It comes not only with certain rules, both also with incentives and penalties. There are rewards for making astute choices, though doing so can require both spending time with the “rulebook” and thinking thorough the various options.

My wife and I going through this right now with a vacation we’re planning. I have miles on American Airlines and she has a large number of points on a credit card. In trying to figure out the best way to use both, one thing has become clear: We need to reevaluate our choices of credit cards. If you truly understand your spending patterns (meaning the types of businesses you mostly spend money at), it is possible to more efficiently make use of credit card rewards and thereby boost your savings rate. What I haven’t done yet—and doing so will require some legwork—is to figure out whether it’s better to get airline miles or cash back. I do think the answer partially depends on how much one travels. Of course, the big key is to never carry a balance from one billing cycle to the next. (For those who do carry credit card debt, balance transfer offers can lessen, but not eliminate, the penalty of doing so.)

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Greek Economy Having Little Impact on Investor Attitudes

Posted on February 19, 2015 | AAII Survey

This week’s Sentiment Survey special question asked AAII members about how Greece’s attempts to renegotiate its debt are influencing their short-term outlook for U.S. stocks. More than two-thirds of respondents (69%) said the Greek situation is not influencing their outlook. About one out of every five respondents overall (21%) said the Greek economy is too small in terms of its global economic influence to have a lasting impact on the U.S. markets. An additional 12% of all respondents think an agreement between the European Union and the new Greek leaders will be reached.

Nearly 18% of respondents said the situation with Greece is negatively influencing their outlooks. Many of these members said they are avoiding European stocks because of the uncertainty or view the situation as being bad for the European Union.

Here is a sampling of the responses:

  • “Greece is a small economy and won’t drag down the European Union. Any impact on the U.S. market will be short-lived.”
  • “I’m sure the European Union will find a way to compromise with Greece.”
  • “The instability of Europe, including the Greek renegotiations, is one significant factor influencing my outlook.”
  • “The unresolved issue makes me leery of both eastern and western European stocks.”
  • “Not at all. Greece is a neverending saga of financial mismanagement.”


AAII Sentiment Survey: Optimism Surges to Second-Highest Level of 2015

Posted on February 19, 2015 | AAII Survey

Individual investor optimism about the short-term direction of stock prices is at its highest level since the start of the year, according to the latest AAII Sentiment Survey. Pessimism, meanwhile, is at a three-month low.

Bullish sentiment, expectations that stock prices will rise over the next six months, jumped 7.0 percentage points to 47.0%. This is the largest amount of optimism since January 1, 2015 (51.7%). The historical average is 39.0%.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, fell 4.6 percentage points to 35.1%. The decline comes a week after what had been the highest reading since July 24, 2014 (40.4%). Nonetheless, neutral sentiment remains above its historical average of 30.5% for the seventh consecutive week.

Bearish sentiment, expectations that stock prices will fall over the next six months, declined 2.4 percentage points to 17.9%. Pessimism was last lower on November 6, 2014 (15.1%). The historical average for bearish sentiment is 30.5%.

As the S&P 500 has rebounded off of its late January lows, we’ve seen a shift in individual investors’ short-term outlooks. Bullish sentiment is up by a cumulative 11.5 percentage points over the past two weeks, while bearish sentiment is down by cumulative 14.5 percentage points. Pessimism is now at an unusually low level (more than one standard deviation below its historical average).

Keeping AAII members encouraged, in addition to the upward momentum of stock prices, are 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: 47.0%, up 7.0 percentage points
  • Neutral: 35.1%, down 4.6 percentage points
  • Bearish: 17.9%, down 2.4 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 2/18/2015

Posted on February 18, 2015 | Podcast

AAII Journal Editor Charles Rotblut explains to Chuck Jaffe of MarketWatch why Gartner (IT) 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





AAII WEEKLY FEATURES 2/17/2015

Posted on February 17, 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.

Read more »



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