How We Define Risk

The potential of losing money by investing in the stock market has become front and center over the past several weeks. The decline in the S&P 500 index and the bigger drops in other indexes and stocks has drawn attention. It has also led to the usual chatter about what the downside volatility means and…

 

Picking a Rate of Return to Use for Long-Term Planning

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Searching for Future Stock Market Winners A study of past big winners identified common traits centered around value, earnings growth and price momentum. The process of creating a stock selection strategy based on characteristics that have worked well in the past must take into…

 

Measuring Risk: A Practical Approach

Risk is a fundamental concept in any investment program. Beta and standard deviation are two common risk measures. But many investors prefer to view risk differently, at least mathematically. Others do not understand how a complex formula for deriving individual betas and standard deviations can be used practically in a real investment program. This workshop…