The September 2017 AAII Journal is Now Available Online

Feature Article » Exchange-Traded Funds Technology Takes Over the Top-Performing ETF List by Jaclyn N. McClellan Two semiconductor funds help put technology on top, though last year’s dominant sector, health care, maintained a presence. Portfolio Strategies » Minimizing Taxes With Asset Allocation by Stephen E. Wilcox Strategically taking into consideration both tax laws and the…

 

Weekly Survey: Retail Investors Respond to Rising Market Volatility

After experiencing some all-time-low volatility, it appears the U.S. stock market is seeing an uptick in volatility. On July 26, the CBOE Volatility Index, or VIX, widely considered to be Wall Street’s “fear gauge,” fell to its lowest level on record. Leading up to that, the VIX had steadily fallen to lows not seen in more…

 

Optimizing Your Retirement Income: What Works Best and Why

With tens of millions of baby boomers already retired millions and more likely to enter retirement in the next decade, the hard truth is that only a small minority are accumulating enough savings to provide for their income needs during decades in retirement. This uncomfortable reality is particularly true given the overall rise in life…

 

June AAII Asset Allocation Survey: Largest Allocation to Equities Since 2005

Equity allocations among individual investors rose to their highest level in more than a decade last month. The June AAII Asset Allocation Survey also shows fixed-income holdings at a multi-year low. Stock and stock fund allocations rose by 1.4 percentage points to 68.8%. This is the largest allocation to equities since April 2005 (70.3%). June…

 

Does Owning a Large Number of Funds/ETFs Mean You are Truly Diversified?

Mutual funds are an easy way for investors to gain exposure to a number of different asset classes and investment styles. While I am a firm believer that individual investors can consistently outperform the market by investing in individual stocks, it does take a level of dedication, patience and discipline that many investors do not have….

 

Readers Worry About Political Risk Affecting U.S. Markets, But Not Acting On It

No matter your political affiliation, the goings-on in Washington, D.C., has had an impact on investors over the last several months. Post-election, U.S. stocks rose strongly in the hopes of increased infrastructure spending, lower taxes and reduced regulations. Eventually, though, the market looked for policy implementation and was disappointed by the initially failed repeal of…

 

Valuation’s Usefulness for Forecasting and Setting Asset Allocation

Dividend yields, price-earnings ratios and cyclically adjusted price-earnings ratios have long been used to forecast long-term stock returns, which may lead some investors to believe that these multiples can also be valuable tools for asset allocation. A dividend yield (D/P) is defined as a company’s dividends per share divided by the current stock price; a…

 

Overweight, or Underweight on Stocks? Members Weigh In

Last month’s Asset Allocation Survey special question asked AAII members if they are overweighting or underweighting stocks. Nearly 43% of respondents said they overweighting stocks. Many of these respondents cited the long-term performance of stocks, while others said they are seeking dividends or don’t view bonds as being attractive right now. Slightly more than 23%…

 

May AAII Asset Allocation Survey: Fixed-Income Falls to a Two-Year Low

Individual investors’ fixed-income allocations fell to a two-year low last month, according to the May AAII Asset Allocation Survey. Both equity and cash allocations rose. Stock and stock fund allocations rebounded by 2.1 percentage points to 67.4%. The rise puts equity allocations at their second-highest level of the year. May was the 50th consecutive month…