This week’s AAII Weekly Digest highlights these “must-read” AAII articles:
Ahead of the next quarterly review of the Model Shadow Stock Portfolio, which will take place at the end of this month, AAII’s chairman James Cloonan reveals some key changes to the selection rules used to identify Shadow Stocks as well as revisions to the portfolio management rules dealing with holding periods.
AAII’s Jaclyn McClellan provides an overview of the value and investing approach to stock selection used by John Neff, the former portfolio manager of the Vanguard Windsor Fund from 1964 to 1995. Neff looked for undervalued, out-of-favor stocks that still exhibited strong but reasonable growth and possessed adequate financial strength.
The momentum factor is based on the price change of a stock over a specified period relative to all other stocks. It is considered to be an anomaly or a risk factor in the analysis of stock returns because stocks with high relative levels of momentum tend to continue to outperform, while stocks with low relative levels of momentum tend to continue underperforming. This article discusses the research on momentum and its long-term record of performance.
There are three elements of successful portfolio management: buying, holding and selling. Yet many investors focus their energies almost exclusively on buying and fail to make a plan for selling. While it is important to find the best stocks and buy at the right time, in order to preserve your profits it is equally key to understand when holding is no longer the right move and the time to sell has come. This article discusses several important rules to consider when deciding when to sell.
Our Member Question for this week is:
Recently, Robert S. Kaplan, president and chief executive officer of the Dallas Federal Reserve Bank, outlined four factors impeding the U.S. and global economies. Which of these four has the potential to be the biggest drag on the U.S. and global economies?
Vote to answer this week’s Special Question: In what ways do you think President Trump’s tax plan, if passed, will impact you financially?
Last Week’s Results:
Where do you hold your retirement assets? (Please provide an approximate percentage for each account type, with total adding up to 100.)
Poll results are as of 9 a.m. (Central) on Monday. 0 respondents.
Congressional Republicans unveiled their tax reform legislation late last week. In doing so, it settled weeks of speculation as to what specific cuts and changes may be proposed and set off a new round of debate on both sides of the political aisle as well as among consumers and business groups. With tax reform front and center, especially with the rumors that contribution limits to 401(k) and 403(b) accounts would be cut, we asked our readers where they hold their retirement assets. We also asked how they would go about reforming and revamping the U.S. tax code.
One of the biggest difficulties for individuals interested in investing in stocks is getting started. This AAII e-book provides a general outline for analyzing stocks and walks through the process as it is practically applied to specific types of investment approaches. It first describes, in very broad terms, the basic process that is followed in fundamental analysis. It then goes into the various steps in more detail and shows how they can be adapted and practically applied to an individual’s specific approach using commonly found information sources.