Causes of Financial Stress

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Your Portfolio: Maintaining Perspective Given the recent bumps in the stock market, we revisit an article written in late 2008, during the last market meltdown to give you some perspective. Financial turmoil can prompt an emotional response that causes investors to flee stock holdings. But…

 

The June 2017 AAII Journal is Now Available Online

Feature » Piotroski Price-to-Book Screen by John Bajkowski The ranking system’s highest scores work well for high price-to-book stocks, but F-Scores of 6 to 7 work better for low price-to-book stocks. Financial Statements » Using Accruals to Judge How Persistent Earnings Will Be by Charles Rotblut, CFA Accruals can be described as forecasts of future…

 

Screening for Stocks Based on the Latest CAN SLIM Criteria

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Focus on the Value of a Business, Not the Stock’s Valuation Valuation ratios do not tell you what you are getting for your money, whereas intrinsic value allows you to assess the stock’s potential. Rupal Bhansali, manager of the Ariel International (AINTX) and the…

 

David Dreman’s Contrarian Approach to Stock Selection

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Shorting: A Strategy for Profiting From Price Declines AAII Journal editor Charles Rotblut discusses short selling with Greg Swenson, co-manager of the Grizzly Short Fund (GRZZX). Swenson offers insights into how he identifies potential short-sale candidates and how investors may handle the risks inherent…

 

David Dreman’s Contrarian Approach to Stock Selection

David Dreman is a famous investor whose name is linked with the definition of “contrarian.” Contrarians think independently, as opposed to going along with the crowd. Dreman feels that irrational behavior in the markets tends to push a stock’s value away from its true value. The savvy contrarian investor executes a value investing approach with…

 

AAII’s Top 10 Articles for July 2016

Here are the Top 10 articles from AAII.com for July 2016 (based on unique page views):   The Top 10 Economic Indicators: What to Watch and Why Everyone wants to keep a pulse on the economy, but no one wants to wade through the massive volume of statistics. A look at the top 10 economic…

 

12 Steps to Drive Emotions Out of Investing Decisions

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Avoiding the Mistakes Made by Ineffective Investors Investors can often do more harm than good to their portfolios by chasing after IPOs, reaching for yield and not understanding what they are buying. But who knew that a decades-old episode of Leave it to Beaver could offer…

 

Social Media Can Feed Investor Panic

Social media has become ingrained in our daily lives, but for investors, this could come at a cost. A Wall Street Journal article discusses the impact between knowing what others are thinking and the performance of one’s investment portfolio in the next market crash. The article cites a 2013 paper from neuroeconomists Benedetto De Martino and colleagues, then…

 

The Case for Contrarian Investing

As investors, we are always being inundated with offers for the “next big thing” that will generate returns in excess of the overall market. While they may deliver what they promise over the short-term, inevitably reversion to the mean takes hold and that outperformance turns into underperformance. Then there are the investors who look at…

 

AAII Journal Update: The Advantages of Simple Asset Allocation

The November 2015 AAII Journal is now available online. Feature Article This month’s feature article is The Advantages of Simple Allocation Strategies. Author Wesley R. Gray suggests that investors are better off reducing the number of asset classes in their investment portfolio since data shows that complex strategies do not significantly outperform simpler ones. This…