Year-End Portfolio Checklist


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


Track and Compare Your Portfolio Using TipRanks’ Smart PortfolioTrack and Compare Your Portfolio Using TipRanks’ Smart Portfolio

TipRanks is a comprehensive, data-driven website that measures the accuracy of published financial advice. The company tracks and ranks the performance of more than 4,000 financial analysts, 5,000 financial bloggers, and 35,000 corporate insiders. TipRanks recently released a tool called Smart Portfolio that provides a new way for individual investors to track the growth of their investments, analyze real-time news investments and compare to their peers.

Asset Returns During High and Low Inflationary Periods

Craig Israelsen

Inflation comes and goes. In recent decades, inflation has been low. But many of us remember the years of high inflation in the 1970s and early 1980s. At some point inflation will return and if the last four and a half decades are any guide when it ticks back up, we will likely see a distinct change in the performance of several asset classes. Large-cap stocks have performed well when inflation has been low, while commodities, real estate and small-cap stocks have led when inflation was high. This article delves deeper into the relationship between inflation and the performance of various asset classes.

Year-End ChecklistYear-End Checklist

December is a good time to review your portfolio, particularly since doing so will help you calculate your tax liability. It is also important to review your overall asset allocation to ensure that the percentage of portfolio dollars allocated to stocks, bonds and other asset classes is appropriate given your tolerance for risk and your financial goals.

Choosing the Right Portfolio Allocation Approach for You

One of the longest-running debates in finance centers on the most critical part of investing: allocation. Opinions vary on what asset classes to allocate to, how much should be put into each asset class and when adjustments should be made. This article discusses the various approaches to portfolio allocation, explaining both their positive and negative traits.

Our Member Question for this week is:

How useful are social media channels, such as Twitter, in your investment decision-making process?


Vote to answer this week’s Special Question:
What do you consider to be the biggest advantages AND disadvantages to investment research from social media investment platforms such as StockTwits?

Last Week’s Results:


special-questionMost AAII Readers Have Unfavorable View of Annuities, Citing High Costs & Low Returns

Annuities are a popular financial vehicle that offer a steady income stream in retirement. However, high fees and shady marketing practices have cast a cloud over the annuity industry. See how AAII readers view annuities and read their comments as to the perceived advantages and disadvantages of annuities.

AAII Shadow Stock Portfolio

One way AAII fulfills its mission of educating individual investors is by using sound academic research to develop practical and actionable investment strategies. AAII’s Model Shadow Stock Portfolio is based on the groundbreaking research of Eugene Fama and Kenneth French, which found that “abnormal” or above-market returns could be generated by investing in the smallest stocks (in terms of market cap) with the lowest valuations (measured by price-to-book ratio). AAII’s founder James Cloonan started the Shadow Stock Portfolio in 1992 to not only see if Fama and French’s research would hold up under real-world conditions but also as a means of educating members on the challenges of managing a stock portfolio themselves. As members of AAII, you have access to this portfolio that is truly geared toward individual investors, along with step-by-step instructions on how to create and manage your own Shadow Stock portfolio.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a Risk-Free Membership to start becoming an effective manager of your own assets.


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