The Senate’s Proposed Change to Recognizing Capital Gains

As I write this, the full Senate is considering the Tax Cuts and Jobs Act (TCJA). One provision in the Senate’s version of the TCJA impacts the treatment of capital gains. Specifically, the provision would eliminate your ability to specify which lot you sold if you purchased shares of the same security on more than…

 

10 Questions to Ask About a Fund Manager

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   How to Measure the Skills of Your Fund Manager Investors can take advantage of an observed characteristic that predicts higher fund performance. As long as the fund keeps its strategy unaltered, and as long as the observed characteristic predicts good performance, investors will benefit…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

How to Measure the Skills of Your Fund Manager

This week’s AAII Weekly Features highlight these valuable AAII articles: How to Measure the Skills of Your Fund Manager: The statistical measure R-squared can reveal whether a fund manager is a closet indexer or is truly following a strategy different than the benchmark index. What Exactly Do Online Investment Advisory Services Do?: In contrast with…