For Long-Term Investors, the Focus Should Be on Risk

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Using Reverse Mortgages to Mitigate Periods of Poor Returns A home equity conversion mortgage (HECM) line of credit, aka a reverse mortgage, provides a tool that can be used to mitigate the impacts of sequence of returns risk (the risk of incurring portfolio losses…

 

A Big Argument for Buying and Then Monitoring

A study showing that most stocks have failed to outperform one-month Treasury bills has been the topic of some discussion this year. The analysis, conducted by Arizona State University finance professor Hendrick Bessembinder, found that slightly more than four out of seven stocks have realized worse returns than one-month Treasuries. The finding drew attention, but…

 

Would You Pay $800 for an Asset Worth $432?

Under most circumstances, an investor offered an asset worth $432 would refuse to pay $800 for it. Such a premium is difficult to justify, especially for an asset with a transparent, easily determinable value. Yet when mania is mixed with other compounding factors, logic can be tossed out the window. The Bitcoin Investment Trust (GBTC)…

 

The September 2017 AAII Journal is Now Available Online

Feature Article » Exchange-Traded Funds Technology Takes Over the Top-Performing ETF List by Jaclyn N. McClellan Two semiconductor funds help put technology on top, though last year’s dominant sector, health care, maintained a presence. Portfolio Strategies » Minimizing Taxes With Asset Allocation by Stephen E. Wilcox Strategically taking into consideration both tax laws and the…