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The AAII Journal

October 2014 Issue

Editor's Note »

Editor's Note

thumbnail for Editor's Note If you want to start an argument in the world of investing, strongly advocate for an asset allocation strategy. It has been 62 years since Harry Markowitz published his groundbreaking study, "Portfolio Selection," in The Journal of Finance, and there still isn't much consensus on the right way to allocate a portfolio. And there may never be.

 

Portfolio Strategies »

Don’t Over-Rely on Historical Data to Forecast Future Returns

thumbnail for Don’t Over-Rely on Historical Data to Forecast Future Returns Historical risk may be a reasonably good predictor of future risk, but past returns are a rotten predictor of future returns.

 

Portfolio Strategies »

Choosing the Right Portfolio Allocation Approach for You

thumbnail for Choosing the Right Portfolio Allocation Approach for You This overview of six common asset allocation approaches will help you determine which method will work best for your portfolio.

 

Stock Strategies »

Weight by Fundamentals, Not by Price

Weighting stocks in a portfolio based on their fundamentals prevents the systematic overweighting of the overvalued and underweighting of the undervalued.

 

Financial Planning »

Misunderstanding Variable Universal Life Can Lead to Adverse Consequences

thumbnail for Misunderstanding Variable Universal Life Can Lead to Adverse Consequences Bad market conditions can cause the cash value of these policies to be much lower than forecast. Find out how to best use these policies.

 

Financial Statements »

Valuing a Company Based on Its Revenues

thumbnail for Valuing a Company Based on Its Revenues The price-to-sales ratio is considered to be one of the “cleanest” valuation multiples; it is also more tied to profit margin than you may realize.

 

Beginning Investor »

The Many Ways to Place a Buy or Sell Order

thumbnail for The Many Ways to Place a Buy or Sell Order Whether you instruct your broker to go long or short, use a market or limit order, or employ a stop all impacts how your orders are filled.

 

Retired Investor »

Advocating the Paycheck Strategy for Lifetime Investing

A predictable flow of cash income can be obtained by holding a ladder of high-quality bonds.

 

AAII Model Portfolios »

Maintaining Model Shadow Stock Portfolio Purchase Rules

thumbnail for Maintaining Model Shadow Stock Portfolio Purchase Rules Though no new non-Chinese stocks are qualifying, there is not enough cash in the portfolio to justify looser purchase rules.

 
Departments
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Cover Articles »

Choosing the Right Portfolio Allocation Approach for You

This overview of six common asset allocation approaches will help you determine which method will work best for your portfolio.


Topic Archive

Below you can view the complete archives of each AAII Journal topic.