Using Bonds Instead of Stocks for Portfolio Income

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 normally may be associated with the stock market? This article outlines a set…

 

Should You Maintain an Allocation to Bonds When Current Rates Are Low?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Closed-End Bond Funds Versus Individual Bonds: A Case Study Closed-end bonds may look attractive based on their yields and discounts to net asset value, but there are pitfalls to watch out for. This article is a case study of a defined-maturity closed-end fund. The…

 

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…

 

Closed-End Bond Funds Versus Individual Bonds – A Case Study

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   What Bond Calls Mean for Your Cash Flow In a falling interest rate environment, or in one where interest rates have fallen in the not-too-distant past, it is especially important for investors to understand bond calls if they own individual bonds, bond funds, annuities…

 

Too Much Confidence Is Bad for Your Portfolio

Higher levels of confidence about one’s ability to invest lead to worse returns. I realize that this may seem counterintuitive to some of you, but this is the conclusion of a study accepted by the Journal of Behavioral and Experimental Finance (an earlier version of the study is available on SSRN). It’s yet another example of…

 

AAII’s Most-Read Articles for September 2016

Here are the Top 10 articles from AAII.com for September 2016 (based on unique page views):   Why Buy Bonds If Interest Rates Will Rise? Starting a bond ladder creates income now and produces cash flow that can be used to reinvest if and when interest rates do rise. The Top 10 Economic Indicators: What…

 

Why Buy Bonds If Interest Rates Will Rise?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:` Bond Pricing Made Simple Many investors know that a bondholder receives periodic interest payments from the bond issuer and that principal is usually not due until the bond matures. But when asked to explain the difference between coupon and yield, or what the risk of a…

 

AAII Weekly Features–David Dreman’s Contrarian Approach to Stock Selection

This week’s AAII Weekly Features highlight these valuable AAII articles: Model Fund Portfolio: Missing the Pre-Election Bull David Dreman’s Contrarian Approach to Stock Selection A Behind-the-Scenes Look at How Trades Are Executed Bond Pricing Made Simple The featured AAII stock screen this week is the O’Shaughnessy All Cap approach. Our Member Question for this week is:…

 

AAII Journal Update: The Advantages of Simple Asset Allocation

The November 2015 AAII Journal is now available online. Feature Article This month’s feature article is The Advantages of Simple Allocation Strategies. Author Wesley R. Gray suggests that investors are better off reducing the number of asset classes in their investment portfolio since data shows that complex strategies do not significantly outperform simpler ones. This…