Top Blog Posts for August

Here are the most-read blog posts for August 2016:   How Risky Are ETFs? Last year’s “flash crash” called into question the safety of ETFs and brought increased scrutiny from regulators and investment professionals. Don’t Underestimate Equities in Retirement Many retirees reflexively believe that they can live off of the interest from their investments while…

 

Majority of Investors Worry About Divergence Between Corporate Earnings & Market Levels

According to FactSet, as of the market close on August 25, over 98% of companies in the S&P 500 have reported earnings for the second calendar quarter earnings season. Of those, 71% have reported positive earnings surprises–actual earnings were above the mean estimate. For the second quarter, the blended earnings decline–reported earnings decline as well…

 

Uses & Misuses of Ben Graham-Style Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Uses and Misuses of Ben Graham-Style Investing: Deep value investing has outperformed the market averages over long periods of time, so why wouldn’t everyone with a long time horizon embrace it? While all investors strive toward essentially the same goal—to make money in the market—their paths…

 

Are All Earnings Surprises Equal?

As we finish another quarterly earnings season, statistics show that companies are generally beating their EPS targets with ease, yet we are not really getting positive stock price reactions from these supposed positive earnings surprise. Positive earnings surprises occur when actual reported earnings are significantly above the forecasted earnings per share. Negative earnings surprises occur…

 

Earnings Estimates: A Primer

This article originally appeared in the May 2015 issue of the AAI Journal. Earnings estimates are the profit forecasts made by brokerage firm analysts. The consensus earnings estimate is the average of all published forecasts for a specific company or index. The consensus earnings estimate is compiled by a small number of companies, such as Thomson…