The Top AAII Stock Screens of 2017

  The Essence of the Benjamin Graham Approach Benjamin Graham has been called the father of value investing and is considered by many to be one of the most successful investors of all time. It’s good reason then that his stock selection methodology has been mimicked by other successful investors such as Warren Buffett. This…

 

What Investments Do You Need?

While working on a new presentation about portfolio strategies, it occurred to me that there is an important question I should address: What investments does an individual investor need in their portfolio? Not specific names, but rather what types of investments. It’s a question that is not necessarily easy for many investors to answer. It’s…

 

The October 2017 AAII Journal is Now Available Online

Feature Article » Stock Strategies Stock Market Retreats and Recoveries by Sam Stovall Only six months, on average, have separated the end of one decline and the start of the next one, but recoveries have been quick. AAII InvestoGraphic » Stock Market Volatility by AAII Staff Large-company stocks can experience big price swings on a 12-month…

 

Create Your Own Model Shadow Stock Portfolio

If you haven’t visited AAII.com recently, please take some time today to see what the website offers. Plenty of helpful resources are available at your fingertips to aid you in the investment process. For over 20 years, the AAII Model Shadow Stock Portfolio has reflected the investment philosophy of AAII founder James Cloonan. In short,…

 

Two Concepts That Can Affect Your Returns

Two concepts often left out of conversations about investing are opportunity cost and endowment effect. Though different, they do overlap and can have implications for your portfolio. Opportunity cost is what you forfeit by taking a certain course of action, even if the action is a decision not to act. Every dollar you allocate to…

 

The July 2017 AAII Journal is Now Available Online

Feature: Portfolio Strategies » Solving the Problem of Retirement by Paul Merriman Retirement places potentially unlimited demands on finite savings, but there are three actions investors can take to mitigate the problem. Stock Strategies » Three Value-Investing Benchmarks by Gary Smith The valuation models espoused by John Burr Williams, Robert Shiller and John Bogle can…

 

Is It Active or Passive?

As was widely expected, the Federal Open Market Committee raised interest rates by a quarter point (0.25%). Whenever there is action by the Federal Reserve, bond experts are often turned to for their views on navigating the credit markets. Their insights clearly reflect active investing, but what if an investor were to use their opinions…

 

Tips for Using Academic Research About Investing

There is a constant stream of new academic research about investing. Some of the papers attempt to explain the key drivers of returns. Some are more focused on investor behavior. Many papers are focused on realizing higher returns (“delivering alpha”). For an investor seeking new ideas, these papers can range along a spectrum from being…

 

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…

 

Is Now a Good Time to Invest in Stocks?

One of the most common questions many of us in the investment community are asked can be paraphrased as “is now a good time to invest in stocks?” The answer to this question consists of two parts. The first is a clarifying question: “When will you need the money?” The second, depending on the response…