Helpful Steps My Late Father-in-Law Took

Special note: This commentary originally ran in March 2017. I received more feedback about it than any other Investor Update column I’ve written over the past eight years. Since many of you found it helpful and I’m out of the office this week, I decided to republish it. My father-in-law passed last week. Les was…

 

August AAII Asset Allocation Survey: Stocks and Cash Allocations Increase

Individual investors’ fixed-income allocations declined compared to last month, according to the August AAII Asset Allocation Survey. While fixed-income allocations decreased, equity and cash allocations increased. Stock and stock fund allocations increased by 0.2 percentage points to 68.5%. While the overall stock allocation increased, it’s worth noting that stock fund allocations increased 0.9 percentage points,…

 

Seeking More Than One Factor Can Boost Returns

One of the current trends within the investment industry is to focus on factors. Also referred to by the monikers “smart beta” and “strategic beta,” factor investing involves buying stocks with certain, quantifiable characteristics. Factors include low valuation, small size, price momentum and many others. There has also been a proliferation of factor exchange-traded funds…

 

July AAII Asset Allocation Survey: Only Slight Changes

Individual investors’ allocations changed just slightly last month, according to the July AAII Asset Allocation Survey. Equity allocations decreased modestly, while fixed-income and cash allocations were marginally higher. Stock and stock fund allocations declined by 0.3 percentage points to 68.3%. Nonetheless, equity allocations remained above their historical average of 61.0% for the 64th consecutive month….

 

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%)….