AAII Survey: Fed Rate Projections Have Little Impact on Retail Investor Decisions

When the Federal Reserve speaks, the world’s financial institutions listen, and for good reason. Fed policy drives not only global financial markets but also the policies of other central banks. Therefore, any insights into the Fed’s thinking are worth paying attention to. One area that has been getting a lot of attention recently is the…

 

AAII Survey: Readers Predict the Most Impactful Developments in Finance for 2018

Change is a constant in the financial world. New services, products and technologies are always coming to the market. In turn, consumers are confronted with new ways to think about their finances. Some of the trends facing the field of finance this year include: Higher interest rates Tax reform An expanding role of artificial intelligence…

 

It’s Not Just the Fed’s Balance Sheet That’s Changing

Two special notes before I start this week’s commentary. First, L’Shanah Tovah to those of you celebrating Rosh Hashanah. Second, though our Investor Conference is getting close to selling out, there is still time to register. You will want to hurry because late fee pricing will go into effect on Monday, September 25. The event…

 

Rate Hikes, Inflation and What You Earn

Yesterday’s interest rate hike by the Federal Open Market Committee was the third in a 15-month period. More notably, it was just the third rate hike since the financial crisis. The rate hike represents another step in the (so far) very gradual removal of stimulus. At current levels, rates remain low on a historical basis…

 

U.S. Indexes Mark 25-Year Milestone

Please note that U.S. markets will be closed on Monday, February 20, in observance of Washington’s Birthday (President’s Day). AAII offices will also be closed. This week saw several market indexes notch multiple all-time highs. The Dow Jones industrial average recorded its fifth consecutive record close on Wednesday, the second such streak in roughly two…

 

AAII Asset Allocation Survey: 17-Month Low for Fixed-Income Allocations

Bonds and bond funds accounted for the lowest percentage of individual investors’ portfolios in 17 months, according to the December AAII Asset Allocation Survey. Cash allocations rose last month, while equity allocations were barely changed. Stock and stock fund allocations declined by a very modest 0.1 percentage points, to 66.3%. December was the 45th consecutive…

 

AAII Sentiment Survey: Neutral Sentiment Rises to a 2016 High

The percentage of individual investors describing their short-term outlook for stock prices as neutral jumped to its highest level of the year, according to the latest AAII Sentiment Survey. Optimism plunged, while pessimism rose for the first time in five weeks. Bullish sentiment, expectations that stock prices will rise over the next six months, fell…