Diverging Opinions on Active Management

Time in the Market Influences Millennials’ Investing Attitudes Millennial investors have often been described as being overly conservative with their portfolio allocations. New research backs up that assertion, as there is a small, but significantly sized, group that is far underweighted in equities. Observations From Decades of Tracking Investment Newsletters There is often little persistence…

 

The October 2018 AAII Journal is Now Available Online

COVER ARTICLE Getting the Same Return With Less Risk: The Power of Factors By Larry Swedroe, Charles Rotblut, CFA Using factors to diversify a portfolio can pull in extreme annual returns without lowering long-term expected returns.     Editor’s Note By Charles Rotblut, CFA Two articles this month tackle the issue of how to manage…

 

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…

 

Words of Advice: Letter to My Grandchildren

This article originally appeared in the October 2013 issue of the AAII Journal. Legendary investor Charles Ellis has spent 50 years working closely with nearly 100 investing organizations, knowing many of the world’s most effective and successful investment managers, teaching the advanced investment courses at both Yale and Harvard, writing over a dozen books and…

 

Beware of Paying Active Management Fees to a Passive Manager

Indexed mutual funds (passively managed funds) aim to track an index or some segment of the market with low fees. Anyone who has heard of John Bogle knows that runaway fees can eat into your portfolio performance over the long run. However, a recent post at AlphaBetaWorks Insights warns of “closet indexing”: the practice of charging active…