Mr. Market Has Reverted Back to a Calm State

On Tuesday, The Wall Street Journal observed in its morning briefing that “The S&P 500 has gone 53 trading days without a move of 1% in either direction, the longest such streak since January.” As of today’s close, the streak now stands at 56 days. This is just the fifth time in five years that…

 

The Essence of the Benjamin Graham Approach

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Volume Surges Have a Fading Impact on Returns Generally speaking, stock movements accompanied by spikes in volume are thought to be more meaningful and more likely to continue versus those movements made on relatively light trading volume. While new data from Australia shows that…

 

Portfolio Optimization Isn’t Necessarily Worth the Effort

A few weeks ago, I offered a list of what assets an individual investor needs to hold in their portfolio. Second in order of importance on my list—behind stocks, bonds and cash—were REITs (real estate investment trusts). These real estate investments offer a dual benefit of diversification and favorable returns. I bring this up because…

 

Lessons From Black Monday

Thirty years ago today, the Dow Jones industrial average incurred its largest single-day percentage-point drop. The blue-chip average plunged by more than 22%. The losses were not just restricted to stocks either, as the futures market was roiled by traders who incorrectly bet on arbitrage strategies. The massive losses resulted in October 19, 1987, being…

 

The October 2017 AAII Journal is Now Available Online

Feature Article » Stock Strategies Stock Market Retreats and Recoveries by Sam Stovall Only six months, on average, have separated the end of one decline and the start of the next one, but recoveries have been quick. AAII InvestoGraphic » Stock Market Volatility by AAII Staff Large-company stocks can experience big price swings on a 12-month…

 

Weekly Survey: Retail Investors Respond to Rising Market Volatility

After experiencing some all-time-low volatility, it appears the U.S. stock market is seeing an uptick in volatility. On July 26, the CBOE Volatility Index, or VIX, widely considered to be Wall Street’s “fear gauge,” fell to its lowest level on record. Leading up to that, the VIX had steadily fallen to lows not seen in more…