The March 2019 AAII Journal is Now Available Online

COVER ARTICLE: To Beat the Market, Invest Differently Than the Market By Charles Rotblut, James O’Shaughnessy Decisions based on less than five years of performance returns are mostly based on noise. Many strategies look good over shorter periods, but fare much worse over longer periods.   IN THIS ISSUE:   Revisiting the “What Works on…

 

Quality Can Help Put the Odds in Your Favor

Let’s start this week’s commentary with a hypothetical scenario: A person you trust says they have two stock picks for you. Both stocks are expected to rise in price. The charts for each stock are showing similar formations and the recent news seems equally positive. You only have enough available cash to buy one of…

 

How AAII Builds and Presents Stock Screens

Year to date, the Oberweis Octagon screen leads all approaches tracked by AAII, up 42.9% through the end of July. Such a high return is very tempting when the market is up only 6.3% over the same period. But blindly chasing high returns without understanding the drivers and characteristics of a given approach is often…

 

Using ETFs to Identify Quality Stocks

If one were to survey investors about what traits make a stock attractive, the top of the list would include an attractive valuation, a reasonable expectation of a price increase (particularly sooner rather than later), a sound underlying business model and good fundamentals. The first two traits are easy to identify: seek out below-average valuations…

 

Analyzing a Stock by Its Dividend and Shareholder Yield

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: High Buyback Yields James O’Shaughnessy, in the fourth edition of his book “What Works on Wall Street” found that stocks with the highest buyback yield (top 10%) outperformed the overall stock universe by an average of 3.2 percentage points a year from the start of 1927…