The AAII Philadelphia Chapter presents...

"Risk Premiums, Valuations, Mean Reversion & ETF Selection"

    Discussed by:

    Michael Paciotti, CFA
    Chief Investment Officer, Integrated Capital Management, Inc.

It?s astounding that the financial news media doesn?t do stories about a very sensible investment strategy, based upon two well-known phenomena. The first is that risky investments, on average, earn higher rates of return than risk-free assets (their risk premiums). The second is that if something is out of kilter, more likely than not it will eventually get back to normal (reversion to the mean). Michael Paciotti looks for categories of investments (asset classes) whose risk premiums are larger than is justified by how risky they are. He then buys exchange-traded funds (ETFs) that cover them. When reversion to the mean drives those risk premiums back down to normal, he sells at a profit. If you would like to learn how he does it, then come to our meeting!

Attend This Meeting and Learn...
How valuations affect asset class returns
What mean reversion is, and why it is important in investment decision-making
How you can use valuations to select ETFs to buy

Tuesday, March 19, 2013
6:00 p.m.    Registration/Social
7:00 p.m.    Program
8:00 p.m.    Q&A
Doubletree Suites Philadelphia West
640 Fountain Road
Plymouth Meeting, Pennsylvania, 19462
[ Map This Location ]
In Advance (by 3/15), AAII Member, Member?s Family & Guests,
$12/person; Non-Members, $15/person
At the Door (space permitting), Everyone, $17/person
No Refunds


Subgroup meetings do NOT require advance registration (some may request an RSVP). Most are free of charge. Contact the group leader if you need additional information to attend.


Computerized Investing
Chris Morris,
This group is dedicated to the art and science of technical analysis. We look at stock charts and indicators through the eyes of some of our members. The members comprise all levels of understanding, from the inexperienced to the seasoned investor. The experienced members are always willing to assist the less knowledgeable. We meet every third Saturday of each month from 10 a.m. to 2 p.m. Please email for information and directions.

Mutual Funds
John Kiernan, 215/348-8310
Meets at Penn Wynne Library, 130 Overbrook Pkwy., Wynnewood, PA, 610/642-7844, 7:00 to 9:00 p.m. on the second Tuesday of the month. This is a working group that examines mutual fund newsletters, software, member portfolios (in percentage terms), decision processes and related topics.

Options and Strategies
Geraldine DePaula, 215/233-3838
Meets at Easttown Library, just south of US 30 at 720 First Avenue in Berwyn, PA, 610/644-0138, from 7:00 to 9:00 p.m., usually on the first Tuesday of the month. (For a map, visit, then click the link: Directions:.) This SIG helps familiarize members with how options may be used in different aspects of portfolio management, including income supplementation and asset protection. It introduces the differing strategies in plain language and offers the opportunity to ask questions and share ideas with fellow AAII members. We have members at all levels of experience with options and any one evening may have discussions on many levels.

Value Investing
Bob Bolder, 267/467-4178
Usually meets 7:00 to 9:00 p.m. on the third Tuesday of the month. This group discusses the investment merits of (usually) two stocks, using the criteria established by such well-known investors as Warren Buffett, Mario Gabelli, Benjamin Graham and Peter Lynch. Please phone Bob Bolder to learn the meeting location.

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