Words of Advice: Letter to My Grandchildren

This article originally appeared in the October 2013 issue of the AAII Journal. Legendary investor Charles Ellis has spent 50 years working closely with nearly 100 investing organizations, knowing many of the world’s most effective and successful investment managers, teaching the advanced investment courses at both Yale and Harvard, writing over a dozen books and…

 

AAII Sentiment Survey: Highest Level of Optimism in Five Months

Optimism among individual investors is at its highest level in five months, according to the latest AAII Sentiment Survey. Pessimism fell to a new low for the year, while neutral sentiment is modestly lower. Bullish sentiment, expectations that stock prices will rise over the next six months, jumped by 5.3 percentage points to 37.4%. Optimism was…

 

AAII Sentiment Survey: Optimism Above 30% for First Time in Three Months

Optimism among individual investors about the short-term direction of stock prices is above 30% for the first time since Thanksgiving, according to the latest AAII Sentiment Survey. Pessimism fell to its lowest level of 2016 as it continued to pull back from its recent highs. Neutral sentiment, meanwhile, rose. Bullish sentiment, expectations that stock prices…

 

AAII Sentiment Survey: Pessimism Pulls Back From Last Week’s High

After nearly reaching a three-year high last week, the percentage of individual investors describing their short-term outlook as bearish pulled back in the latest AAII Sentiment Survey. Nonetheless, pessimism remains above average and optimism remains at unusually low levels. Bullish sentiment, expectations that stock prices will rise over the next six months, rebounded by 8.3…

 

AAII Sentiment Survey: Neutral Sentiment Jumps as Pessimism Declines

Neutral sentiment rebounded back above its historical average as pessimism continued to pull back from its recent high in the latest AAII Sentiment Survey. Optimism declined, continuing the streak of fewer than three out of 10 investors expecting gains in the stock market. Bullish sentiment, expectations that stock prices will rise over the next six…

 

Nine Rules to Better Stock Investing

This article originally appeared in the April 2015 issue of the AAII Journal. The Wall Street machine acts as a huge distraction that creates noise and confusion in the markets—and in our own brain chemistry—that makes long-term investing more difficult. Guy Spier, manager of the Aquamarine Fund, believes that the best way to overcome the shortcomings…

 

Enjoying the Investing Experience: 4 Tips From a Long-Time Investor

This article originally appeared in the May 2015 issue of the AAII Journal. Experience is the best teacher. How true! I have been a professional investment manager for 62 years, mainly at David L. Babson & Co., where I managed portfolios for all kinds of individual and institutional clients and then served as president and chairman…

 

Advocating the Paycheck Strategy for Lifetime Investing

This article originally appeared in the October 2014 issue of the AAII Journal. The Paycheck Strategy for Lifetime Investing is outside of the current investment paradigm of professional investment advisers, but we believe it can be the basis for a strategy to ensure a flow of income. Instead of focusing on periodic investment gains and losses,…

 

Choosing the Right Portfolio Allocation Approach for You

One of the longest-running debates in finance centers on the most critical part of investing: allocation. Opinions vary on what asset classes to allocate to, how much should be put into each asset class and when adjustments should be made. Volumes have been written on the subject. Yet a single simple consensus eludes us. In…

 

The Peter Lynch Investor Personality Test

I decided recently to reread some of the investing books that helped shape my investment philosophy and see if they are still relevant for individual investors today. Peter Lynch’s 1989 book “One Up On Wall Street” offered investors wonderful insight into the mind of one of the greatest modern investors. Peter Lynch gained his fame…