The Importance of Diversification in Retirement Portfolios

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   A Financial Planner’s Guidance for Women on Planning for Retirement It is a fact that 90% of women will be single at some point during their retirement. According to the 2014–2015 Prudential Research study “Financial Experience & Behaviors Among Women,” nearly half of those…

 

AAII Survey: 30 Years Later, Most Individual Investors Believe Another “Black Monday” is Possible

The following is an excerpt of my weekly commentary for AAII’s Stock Superstars Report from October 20, 2017. As you may have heard, yesterday (Thursday) marked the 30th anniversary of “Black Monday,” the biggest one-day stock market decline in Wall Street history. These days for many, myself included, Black Monday takes a backseat to the bear…

 

A Fixed-Income Toolkit for Buying Individual Bonds

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Interest Rate Sensitivity and Bond Pricing How can it be that there are times when “safe” assets such as high-quality corporate bonds or U.S. Treasuries exhibit levels of price volatility that may normally be associated with the stock market? This article outlines a set…

 

U.S. Markets Continue to Climb, Triggering Potentially “Ominous” Signal

Weekly Market Summary Renewed promises from President Trump of a new tax plan and generally positive economic and earnings data sent U.S. stocks upward again this week. In fact, this week the Dow Jones Industrial Average (DJIA), S&P 500 and Nasdaq Composite notched intraday highs in each of the last six sessions. According to Schaeffer’s…

 

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%…