Second-Quarter Earnings and Tips on Analyzing the Numbers

Second-quarter earnings will begin to heat up next week. Thomson Reuters projects S&P 500 index earnings growth of 20.7% and revenue growth of 8.1% on a blended basis. (The blended number uses results from both the 20 S&P 500 companies that have reported as of this morning and the consensus forecast of analysts’ estimates for…

 

June AAII Asset Allocation Survey: Fixed Income Bounces Back

Individual investors’ fixed-income allocations rebounded last month after having previously fallen to their lowest level in nearly a decade. The June AAII Asset Allocation Survey also shows declines in equities and cash. Stock and stock fund allocations fell 1.4 percentage points to 68.6%. Nonetheless, equity allocations remain above their historical average of 61.0% for the…

 

May AAII Asset Allocation Survey: Fixed-Income Allocations Lowest Since 2008

Individual investors’ allocations to bonds fell to their lowest level in nearly a decade last month. The May AAII Asset Allocation Survey also showed a rebound in equity allocations and a decrease in cash allocations. Stock and stock fund allocations rose 2.5 percentage points to 70.0%. The rebound followed four consecutive monthly declines. Equity allocations…

 

AAII Asset Allocation Survey: 11-Month High for Cash

Individual investors’ cash allocations rose to an 11-month high last month. At the same, equity allocations declined to their lowest level since last summer according to the April AAII Asset Allocation Survey. Stock and stock fund allocations declined for a fourth consecutive month, falling 2.2 percentage points to 67.5%. Equity allocations were last lower in…

 

Keep Calm and Ignore the Market’s Volatility

Lately, friends and acquaintances have been bringing up the stock market’s volatility in conversation. While it’s always possible for me to be an outlier, I suspect in this case that I’m not. The magnitude of the moves is one reason market volatility is a topic of conversation. I suspect many people still view a 200-point…

 

March AAII Asset Allocation Survey: Five-Month Low for Equity Allocations

Individual investors’ allocations to equities are at their lowest level in five months according to the latest AAII Asset Allocation Survey. At the same time, fixed-income allocations are higher. Stock and stock fund allocations declined for a third consecutive month, falling 0.4 percentage points to 69.7%. Equity allocations were last lower in November 2017 (68.6%)….

 

February AAII Asset Allocation Survey: Cash Allocations Rise

Cash allocations among individual investors rose to a four-month high last month. The February AAII Asset Allocation Survey also shows declines in equity and bond allocations. Stock and stock fund allocations declined for a second consecutive month, falling 1.1 percentage points to 70.1%. January was the 59th consecutive month that equity allocations were above their…

 

January AAII Asset Allocation Survey: Equity Allocations Stay Above 70%

Individual investors’ exposure to equities declined slightly, but stayed above 70% for a second consecutive month in January. The January AAII Asset Allocation Survey also shows small increases in fixed income and cash allocations. Stock and stock fund allocations pulled back by 0.8 percentage points to 71.2%. January was the 58th consecutive month that equity…

 

Quality Can Help Put the Odds in Your Favor

Let’s start this week’s commentary with a hypothetical scenario: A person you trust says they have two stock picks for you. Both stocks are expected to rise in price. The charts for each stock are showing similar formations and the recent news seems equally positive. You only have enough available cash to buy one of…

 

A Majority of Investors’ Year-End Allocations Close to Expectations

Last month’s special question asked AAII members how their current allocation compares to what they expected it to look like at the start of 2017. Slightly more than half of all respondents said their allocations were close to what they had anticipated. Approximately 25% of all respondents said they had more exposure to equities than…