AAII’s Top 10 Articles for June 2016

Here are the Top 10 articles from AAII.com for June 2016 (based on unique page views): Achieving Greater Long-Term Wealth Through Index Funds John “Jack” Bogle, founder of the Vanguard Group of mutual funds, chats with AAII Journal editor Charles Rotblut about why he favors broad market index funds, as well as his thoughts about…

 

Over Half of Surveyed Investors Agree With The Fed’s Rate Decision

This week’s Sentiment Survey special question asked AAII members whether the Federal Open Market Committee was correct in keeping interest rates unchanged at its June meeting. More than half of respondents (56%) said the Fed was correct not to raise rates. Slow domestic economic growth and global uncertainty—including today’s Brexit vote—were the primary reasons given…

 

Overwhelming Number of Individual Investors Think Federal Reserve Has Too Much Power

Last week’s AAII special question asked how much power individual investors feel the Federal Reserve has over boosting the U.S. economy and the stock market. In all, 439 members responded. Among those that addressed whether the Federal Reserve has too much or too little power (75 in all), an overwhelming percentage–97.3%–feel that the Fed has too…

 

Two-Thirds of Survey Respondents Sticking With Stocks

May’s Asset Allocation Survey special question asked AAII members if, given $50,000, how they would invest it today. Nearly two-thirds of respondents (65%) said stocks or stock funds. Dividend-paying stocks were a particular favorite, picked by more than 11% of all respondents. Nearly 20% said they would keep some or all of the amount in…

 

Notes from the CFA Conference

The CFA Institute held its annual conference in Montreal this week. The conference draws global speakers from academia, the investment industry profession and even rock ‘n roll—Sir Bob Geldof spoke yesterday. (Unfortunately, he didn’t sing, opting instead to discuss investing in Africa.) The conference also attracts a truly global audience. Yesterday, I sat down across…

 

AAII Sentiment Survey: Pessimism Falls to a Five-Month Low

Pessimism among individual investors about the short-term direction of stock prices is at its lowest level in five months, according to the latest AAII Sentiment Survey. Nonetheless, less than one in three individual investors are optimistic. Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 5.0 percentage points to…

 

Presidential Election, Domestic Economy Weighing on Stock Outlooks

This week’s Sentiment Survey special question asked AAII members what factors are currently most influencing their six-month outlook for stocks. More than one out every four respondents (27%) mentioned the presidential election. (One member described it as “the craziest presidential election in my lifetime.”) The domestic economy was second, listed both positively and negatively by…

 

One in Three Respondents See Negative Impact From the Fed

This week’s Sentiment Survey special question asked AAII members what type of impact they perceive monetary policy to be having on the stock market. More than one out of three respondents (37%) said that the Federal Reserve is having a negative impact. Several (12% of all respondents) believe that continued low interest rates are artificially…

 

AAII Sentiment Survey: Neutral Sentiment Rises to a 2016 High

The percentage of individual investors describing their short-term outlook for stock prices as neutral jumped to its highest level of the year, according to the latest AAII Sentiment Survey. Optimism plunged, while pessimism rose for the first time in five weeks. Bullish sentiment, expectations that stock prices will rise over the next six months, fell…

 

Members Welcome Fed’s Rate Hike

With the Sentiment Survey during the week before Christmas, we asked AAII members for their thoughts about the Federal Reserve’s recent rate hike. More than 37% of respondents agreed with or approved of the rate hike. Nearly 29% said it was either about time to raise rates or that the rate hike was overdue. About…