Using Cash and Short-Term Bonds to Avoid Taking Losses

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Analyzing a Stock by Its Dividend and Shareholder Yield One theory of valuation is that a stock is worth the cash distributable to shareholders. An advantage to methodologies based on this concept is that cash distributions are not influenced by accounting adjustments. Cash is…

 

Bond Market Liquidity and Its Impact on Your Portfolio

There are many headlines warning investors about the next possible financial emergency—the lack of liquidity in the bond market. The meaning of liquidity and the essence of the problem are not obvious. The media tends to look at the bond market as a monolithic block with bond yields either rising or falling. However, there are…