What to Do When Gains Are Hard to Come By

If you feel like you have struggled this year to realize good or even positive returns, you are not alone. This has been a very tough year for investors. Though yesterday’s comments by Federal Reserve chair Jay Powell helped, returns for most asset classes and categories range from being down to only modestly up year…

 

You CAN Lose With Bonds

Dividend Safety Signs and Warning Flags Many investors have sought shelter from the stock market storm in more mature dividend-paying companies since the income from these firms provides at least some positive return in an otherwise bleak environment. What signs can you look for that indicate the safety of a company’s dividend payment stream? Choosing…

 

The Number of Investments to Hold in Your Portfolio

The number of investments required to be adequately diversified depends on a few factors. For most individual investors, the number is not very high. It does depend on what is held in the portfolio and the dollar size of the portfolio overall. This week, I provide a few guidelines. Let’s start with stocks. We suggest…

 

AAII Survey: Which Geographic Regions Hold the Greatest Investment Risk?

Geographical diversification is the practice of diversifying an investment portfolio across different geographic regions in order to reduce the overall risk and improve returns. There is a good amount of debate about the importance of investing in different regions of the world instead of investing on in U.S. companies or just North America. Investing in…

 

What to Do When You Haven’t Saved Enough for Retirement

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Art of Creating an Investment Policy Statement The approach to building your nest egg should be process-driven. You should document the process you will follow in a written plan, an “investment policy statement” (IPS), that incorporates your short-, mid- and long-term financial goals….

 

Does Owning a Large Number of Funds/ETFs Mean You are Truly Diversified?

Mutual funds are an easy way for investors to gain exposure to a number of different asset classes and investment styles. While I am a firm believer that individual investors can consistently outperform the market by investing in individual stocks, it does take a level of dedication, patience and discipline that many investors do not have….

 

AAII’s Best of the Web – Portfolio Tracking, Analysis & Optimization

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Model Shadow Stock Portfolio: Handling Major Financial Statement Revisions Major revisions to financial statements have been rare among Shadow Stocks; their mere occurrence is not reason alone for a stock’s removal. Jim Cloonan offers his latest quarterly review of the AAII Model Shadow Stock…

 

Too Much Complexity Isn’t a Good Thing

A year ago, I began including doodles with my weekly commentary. The first one was a sketch discussing the impact of changes in earnings forecasts on stock prices. The purpose was to visually highlight and graphically explain one of the points I was making. Being a writer who thinks in terms of communicating by text…

 

Picking Good Investments, Not Good Stories

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Rebalancing Update: How Frequently Allocations Should Be Adjusted There was a reward for investors who stuck with their long-term portfolio strategies last year: positive returns. Despite the stock market’s dip, the drop and then rise in bond yields, and a panoply of surprising headlines,…