Reviewing Readers’ Predictions for 2018, Looking Ahead to 2019

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Financial Literacy Tied to Greater Retirement Savings An analysis of employee retirement plans found evidence supporting a link between greater financial literacy and greater retirement wealth. Those who are more literate about financial and investment concepts allocate more to stock funds, own portfolios with higher…

 

Fit for All Seasons: Managing and Monitoring Your Portfolio

Portfolios occasionally get away from investors and become financial beasts. You may have one of these creatures in your file cabinet: Your portfolio may be something you started long ago and added to sporadically over the years, never looking very closely at these investments individually after your initial interest or considering how the individual investments…

 

Partisan Conflict and Market Volatility

Even with last weekend’s government shutdown, no agreed-upon budget and yet another debt ceiling increase needed, the major U.S. indexes continued to set record highs. While Mr. Market’s ongoing calm mood may seem paradoxical given what’s happening inside of the Beltway, one study suggests it is normal for volatility to be low. The study’s authors…

 

Investing Rules of Thumb and Key Phrases: Gleaning the Nuggets of Truth

Editor’s note: This post was excerpted with permission of the publisher, John Wiley & Sons Inc. from “The Forbes CFA Institute Investment Course: Timeless Principles for Building Wealth.” Copyright © 2011 by Forbes, LLC. More information about the book and a multimedia supplement are available at www.cfainstitute.org/forbes. Humorist Will Rogers was once asked for investment advice….

 

AAII Survey: 30 Years Later, Most Individual Investors Believe Another “Black Monday” is Possible

The following is an excerpt of my weekly commentary for AAII’s Stock Superstars Report from October 20, 2017. As you may have heard, yesterday (Thursday) marked the 30th anniversary of “Black Monday,” the biggest one-day stock market decline in Wall Street history. These days for many, myself included, Black Monday takes a backseat to the bear…

 

Stock Superstars Report: November Portfolio Changes and Update

This month there is one portfolio deletion and one portfolio addition for the SSR tracking portfolio. For more information on this month’s portfolio changes, read the November SSR Monthly Report. October Market Recap The U.S. stock market kept churning away in October as the “Trump Trade” nears its one-year anniversary. Strong corporate earnings, global growth…

 

Liquidity: How Much Do You Need?

Individuals have varying needs for assets that are readily available. How does one decide the appropriate level? A Keynesian analysis comes from the late Baron of Tilton. How much of a liquid balance should investment portfolios contain? That question crops up frequently in financial planning as investors try to determine their overall portfolio. The first…

 

A Big Argument for Buying and Then Monitoring

A study showing that most stocks have failed to outperform one-month Treasury bills has been the topic of some discussion this year. The analysis, conducted by Arizona State University finance professor Hendrick Bessembinder, found that slightly more than four out of seven stocks have realized worse returns than one-month Treasuries. The finding drew attention, but…

 

Weekly Survey: Retail Investors Respond to Rising Market Volatility

After experiencing some all-time-low volatility, it appears the U.S. stock market is seeing an uptick in volatility. On July 26, the CBOE Volatility Index, or VIX, widely considered to be Wall Street’s “fear gauge,” fell to its lowest level on record. Leading up to that, the VIX had steadily fallen to lows not seen in more…

 

Optimizing Your Retirement Income: What Works Best and Why

With tens of millions of baby boomers already retired millions and more likely to enter retirement in the next decade, the hard truth is that only a small minority are accumulating enough savings to provide for their income needs during decades in retirement. This uncomfortable reality is particularly true given the overall rise in life…