Not Clear That Mutual Funds Are Becoming More Tax Friendly

This is the time of year when mutual funds make their annual distributions. The distributions, in this case, involve capital gains and ordinary income. They are the profits realized by the funds, most commonly through the sale of their portfolio’s holdings. To the extent that these gains cannot be offset by losses, they are passed…

 

AAII’s Most-Read Articles for November 2016

Here are the Top 10 articles from AAII.com for November 2016 (based on unique page views): The Top 10 Economic Indicators: What to Watch and Why Everyone wants to keep a pulse on the economy, but no one wants to wade through the massive volume of statistics. A look at the top 10 economic indicators…

 

Putting the Rise in Bond Yields Into Perspective

Bond yields have suddenly found themselves in the financial headlines. Since Donald Trump became president-elect, the yield on the 10-year Treasury has risen from 1.86% on Election Day to a near-term closing high of 2.22% on Tuesday. That is nearly a half-percentage point jump in just seven days. (The closing yield was slightly higher today,…

 

How to Keep Headlines From Driving Your Portfolio Decisions

On behalf of everyone at AAII, I want to say thank you to all of you who have served or are currently serving in the military. The stock market will be open Friday, Veterans Day, but banks and government offices will be closed. Big, unexpected events commonly trigger strong emotional reactions. The wiring in our…

 

AAII’s Most-Read Articles for October 2016

Here are the Top 10 articles from AAII.com for October 2016 (based on unique page views): The 10 Myths of Retirement Planning Retirement planning requires a clear-eyed analysis of future needs and income, but many individuals view retirement through rose-colored glasses. Here are some of the most common myths and how you can bring reality…

 

An Election Trend That Might Not Be Repeatable

The election day is just 11 days away, thank goodness. As it nears, articles and reports are appearing about the election’s impact on the market. We’re going to discuss the data in the November Stock Superstars Report, which will be posted online Friday evening, but I’ll share some of the data here as well. Rather…

 

Earnings Estimates’ Effect on Stock Prices

One of the most-discussed stock screens on the AAII discussion boards is Estimate Revisions: Up 5%. The screen seeks out companies with a one-month increase in the consensus earnings estimate for the current year of 5% or more. A post about the screen currently has 86 responses. Earnings estimates are forecasts made by analysts about how…

 

AAII’s Most-Read Articles for September 2016

Here are the Top 10 articles from AAII.com for September 2016 (based on unique page views):   Why Buy Bonds If Interest Rates Will Rise? Starting a bond ladder creates income now and produces cash flow that can be used to reinvest if and when interest rates do rise. The Top 10 Economic Indicators: What…

 

The Incredibly Shrinking Fed Growth Forecasts

Seemingly overlooked in all of the hubbub about a possible rate hike occurring at the December Federal Open Market Committee (FOMC) meeting is the longer-term trend of falling growth forecasts. FOMC members have collectively reduced their real (“inflation-adjusted”) long-run GDP growth forecasts for at least five consecutive years. The current long-run forecast calls for 1.80%…

 

Why Buy Bonds If Interest Rates Will Rise?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:` Bond Pricing Made Simple Many investors know that a bondholder receives periodic interest payments from the bond issuer and that principal is usually not due until the bond matures. But when asked to explain the difference between coupon and yield, or what the risk of a…