Letters

Editor's Note
Editor's Note
A look at what's in the August 2010 AAII Journal.

Financial Planning
Family and Finances: Start the Dialogue
Protecting family wealth involves discussing all aspects of financial planning, including long-term plans, with both parents and children.

Trading Strategies
The Covered Call: An Income-Generating Options Strategy
Writing covered calls can add extra income to a buy-and-hold strategy, but it limits profits on the underlying stock.

Portfolio Strategies
Preferred Stocks: An Overlooked Alternative
Preferred stocks can augment income strategies with priority access to dividends, but expose investors to interest rate and credit risk.

Investment Offerings
Mutual Fund to ETF Conversion
Huntington Asset Advisors wants to convert one of its mutual funds to an ETF.

Stock Screens
A Technical-Fundamental System for Stock Selection
Momentum and value are combined in this active trading strategy based on Grant Henning’s book, “The Value and Momentum Trader.”

AAII Model Portfolios
Bear Market Bites Model Fund Portfolio and Stock-Based Mutual Funds
Weakness in May and June hurt the model fund portfolio’s return. Virtually all stock-based mutual funds now have negative three-year returns.

Features
Financial Metrics Shenanigans
Companies can use financial metrics to mislead investors. Being alert and paying attention to the definitions can expose such tricks.