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…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

What is the Most Tax-Efficient Investment?

An AAII member recently asked, “What is the most tax-efficient investment?” Before you answer, stop and give the question some thought. The answer is not as straightforward as it may seem. A few factors influence the tax efficiency of investing. One, of course, is the type of investment. Municipal bonds receive very favorable tax treatment,…