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One fear many investors have is incurring a large drop in the stock market. “Major drawdowns,” as defined by AQR Capital Management, are those where prices drop by at least 20% from peak to trough. The investment firm counts 11 such drops as having occurred in the stock market...

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Model Shadow Stock Portfolio: Why Quarterly Reviews Still Make Sense The Model Shadow Stock Portfolio has been reviewed quarterly to determine stock sales and additions since its...

COVER ARTICLE Getting the Same Return With Less Risk: The Power of Factors By Larry Swedroe, Charles Rotblut, CFA Using factors to diversify a portfolio can pull in extreme annual returns without lowering long-term expected returns.     Editor’s Note By...

AAII InvestoGraphic: Adjusting Overweight Positions Allowing a portfolio position to become oversized relative to your other holdings undermines the concept of diversification. This AAII InvestoGraphic offers guidance on how to pare down a position in a stock whose gains have caused...

One of the Briefly Noted columns appearing in next month’s AAII Journal will give tips on what to do during each of the five years leading up to retirement. In the column, we reference AAII founder James Cloonan’s Level3 withdrawal rules. Among those rules is allocating an...

In assisting my mother-in-law with her finances, one of the things I’ve done is to project how long her savings will last. I’m monitoring her income, spending and savings to ensure she is able to live comfortably now and still has enough to cover future potential living and...

Second-quarter earnings will begin to heat up next week. Thomson Reuters projects S&P 500 index earnings growth of 20.7% and revenue growth of 8.1% on a blended basis. (The blended number uses results from both the 20 S&P 500 companies that have reported as of this morning...

  Feature Article: Portfolio Strategies » For Bucket Portfolios, the Devil Is in the Details by Christine Benz Guidance on implementing a bucket strategy in a real world portfolio, including portfolios with more than one type of account.     Portfolio Strategies...

In investing, value premium refers to the greater risk-adjusted return of value stocks over growth stocks. Eugene Fama and Kenneth French first identified the premium in 1992, using a measure they called HML (high book-to-market ratio minus low book-to-market ratio) to...

The stock market endured a mini tantrum on Tuesday in response to a rise in bond yields. The Wall Street Journal described the 10-year Treasury note’s yield as experiencing its largest one-day increase since March 2017. The rise was big enough to cause the benchmark note to end...