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…

 

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…

 

Retirement Readiness is Being Assessed in the Wrong Manner

This week’s AAII Weekly Features highlight these valuable AAII articles: Methods for Valuing a Stock Based on Profitability and Growth: By using different valuation methods, a range can be established for determining whether a stock is cheap or expensive. Retirement Readiness is Being Assessed in the Wrong Manner: No consensus exists on an acceptable risk…

 

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…

 

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…

 

AAII’s Top 10 Articles for November 2015

Here are the Top 10 articles from AAII for November 2015 (based on page views):  Defining Your Investment Philosophy Without an easy-to-explain investment philosophy, you run the risk of chasing one investment fad to the next, losing the money along the way. Here are 10 questions that will help you determine that your personal investing philosophy…

 

Weekly Features–The Advantages of Simple Allocation Strategies

This week’s AAII Weekly Features highlight these valuable AAII articles: The Advantages of Simple Allocation Strategies David Dreman’s Contrarian Approach to Stock Selection Why Your Financial Advisor Should Be a Fiduciary Defining Your Investment Philosophy The featured AAII stock screen this week is the Dreman With Estimate Revisions approach. Our Member Question for this week is:…

 

AAII Weekly Features–David Dreman’s Contrarian Approach to Stock Selection

This week’s AAII Weekly Features highlight these valuable AAII articles: Model Fund Portfolio: Missing the Pre-Election Bull David Dreman’s Contrarian Approach to Stock Selection A Behind-the-Scenes Look at How Trades Are Executed Bond Pricing Made Simple The featured AAII stock screen this week is the O’Shaughnessy All Cap approach. Our Member Question for this week is:…