AAII Survey: Which Geographic Regions Hold the Greatest Investment Risk?

Geographical diversification is the practice of diversifying an investment portfolio across different geographic regions in order to reduce the overall risk and improve returns. There is a good amount of debate about the importance of investing in different regions of the world instead of investing on in U.S. companies or just North America. Investing in…

 

Bulls Continue to Recover in Mixed Market

Weekly Market Summary Two major news events failed to generate much response from the U.S. market this week: the Congressional testimony of former FBI Director James Comey and the Parliamentary election in the U.K. While Comey’s testimony didn’t paint the president in the most favorable light, there were no bombshell revelations that some were hoping…

 

AAII Sentiment Survey: Neutral Sentiment Rises to Two-Month High

The percentage of individual investors describing their short-term outlook for stocks as “neutral” is at its highest level in two months, according to the latest AAII Sentiment Survey. At the same time, optimism is back below 30%. Pessimism is lower as well. Bullish sentiment, expectations that stock prices will rise over the next six months,…

 

Brexit Leaves Nearly 75% of Respondents’ Allocations Unaffected

July’s Asset Allocation Survey special question asked AAII members how Great Britain’s decision to leave the European Union affected their allocation decisions. Nearly three-quarters of respondents (73%) said the referendum’s outcome either did not affect their portfolio allocation decisions or that they are not making any changes in reaction to the vote. Some of these…

 

Creating and Following a Real Financial Plan

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: IRA Rollover Chart: Rules Regarding Rollovers and Conversions This article provides a helpful chart, adapted from the Internal Revenue Service (IRS), that shows what types of retirement accounts can be rolled over or converted into another type of retirement account.   Life After Loss: 6 Smart…

 

Election & Global Uncertainty Affecting Investors’ Stock Outlook

This week’s Sentiment Survey special question asked AAII members what factors are most influencing their six-month outlook for stocks. The top two factors were the U.S. presidential election (listed by 45% of respondents) and global economic uncertainty (named by 39%). More than one out of four respondents (27%) specifically pointed to the uncertainty being created…

 

Majority of Investors Believe Brexit Will Happen, But Won’t Impact Investment Strategy

The global markets were caught somewhat off guard to the June 23 vote in the U.K. to leave the European Union. In the days that followed, stock markets around the globe first retreated strongly only to rebound, nearly erasing the “Brexit” losses. While most long-term investors consider short-term volatility due to headline risk as mere…

 

Think Twice Before Making Your Own Market (Br)exit

There is an old investing adage: “the market is always right.” Investors would be wise to question this adage in light of last week’s Brexit referendum. If the market is always right, then why were traders bidding stocks up as the British were voting to leave the European Union? For that matter, why did stocks…

 

Over 1 in 3 Surveyed Investors Say Market Matched Expectations

This week’s Sentiment Survey special question asked AAII members how the performance of the stock market over the first half of the year compares to their expectations. Slightly more than one out of three respondents said the returns matched their expectations. A nearly even number of respondents said the returns exceeded their expectations (20%) or…

 

AAII Sentiment Survey: Optimism Rebounds to a 4-Week High

Optimism among individual investors about the short-term direction of the stock market rebounded to a four-week high in the latest AAII Sentiment Survey. Neutral and bearish sentiment both declined, but remain above their respective historical averages. Bullish sentiment, expectations that stock prices will rise over the next six months, rose 6.9 percentage points to 28.9%….