Enhancements to AAII.com

AAII’s Web department has been hard at work refreshing the look and functionality of AAII.com for members. In the process, we’ve made several notable enhancements to some of our members’ favorite tools.

More Help With Asset Allocation

AAII’s Asset Allocation Models are a useful tool whether you’re just starting to set up a portfolio, want guidance on rebalancing an existing portfolio, or are heading into retirement. The enhanced Asset Allocation Models page, at www.aaii.com/assetallocation, gives you a concise and much more easily understood look at three models for an aggressive, moderate or conservative investor. These models are defined by percentage held in stocks—90%, 70%, or 50%, respectively—and show a time horizon range, risk tolerance, and suggested allocation breakdowns. Sample risk and return figures are displayed for each model (Figure 1), and the aggressive and moderate models also provide simple guidance on how to transition into a less risky portfolio over time. While each investor must choose for themselves the right allocations to fit their portfolio and financial needs, these models provide a solid framework to work from.

Figure 1. Asset Allocation Models Page

To help in this regard, one of the main enhancements to the Asset Allocation Models page is the four-step online mini course that guides investors through the basics—and some of the tricks—of successful asset allocation. This free course outlines how to determine your personal investment profile of needs and requirements in order to balance risk and return and set up an allocation strategy that is right for you.

New Visuals on the Popular Investor Sentiment Survey Page

Another change on AAII.com is an updated version of the AAII Sentiment Survey page, at www.aaii.com/sentimentsurvey. If you are not familiar with it, this survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis and results are published every Thursday morning. The enhanced page features a new at-a-glance visual translation that clearly illustrates the current percentages with their historical averages (Figure 2). In addition, AAII Journal editor Charles Rotblut’s commentary on the results now appear at the bottom of the page each week.

Figure 2. Sentiment Survey Page

As always, for more in-depth data, a downloadable Excel sheet is available that contains all of the results going back to the survey’s beginning in 1987. Please stop by this page to take the survey yourself each week.

AAII Blog

Have you checked the AAII blog (blog.aaii.com) lately? Updated regularly, sometimes multiple times a day, the blog is an excellent way to keep up with financial news and trends, as well as the latest happenings at AAII (Figure 3).

Of special note is a new monthly series by AAII president John Bajkowski. His blog posts give a unique perspective on a variety of topics and have covered everything from Bowie bonds to small-cap stock trends. In one recent entry, he analyzes the chances of another market downturn, diving into historical trends as well as the emotional factors that lead some investors to sell at bad times. Another recent post, “A Look at Relative Strength Measures,” explains price momentum and relative strength indicators, and outlines how to calculate a relative strength index. Bajkowski also includes links to relevant AAII Stock Screens that use these metrics.

Figure 3. AAII Blog

Another regular blog feature is results of the weekly Sentiment Survey with commentary by Journal editor Charles Rotblut on the latest numbers, posted each Thursday morning. Rotblut also regularly posts links to his MoneyLife Radio Sell of the Week, usually in conversation with MarketWatch’s Chuck Jaffe.

AAII Financial Summary

Annually, AAII publishes its year-end balance sheet for members and life members interested in the finances of the association. Prior years’ balance sheets can be found online in the Member News sections of past AAII Journals.

American Association of Individual Investors Balance Sheet: December 31, 2015

Local Chapters Diversifying the Education Game

AAII Local Chapters, as always, continue to host a diverse slate of live educational investment programming for members. In addition to presentations by visiting professionals and educators, several chapters are augmenting their programs with special workshops and Special Interest Group (SIG), or subgroup, meetings.

The Silicon Valley chapter recently wrapped up an eight-part series of financial planning workshops by Fred Smith, a chapter board member. The highly successful workshops were presented in conjunction with a regular chapter meeting and additionally at a local library in order to reach a wider audience. Topics ranged from building a diversified portfolio to retirement planning.

Figure 4. Interactive Map of Local Chapter Locations

The Milwaukee chapter holds a popular annual day-long retreat each winter that intersperses engaging presentations with upscale dining breaks. Milwaukee also hosted an open mic event between members and chapter leaders this May, similar to the open mic event that’s been hosted by the Central Florida chapter for seven years running. While several chapters and subgroups include excerpts from investment or finance books as material, the Denver chapter takes it one step further with an investment book club that meets almost monthly.

These are just a few examples of the diverse programming taking place all across the country.

Are you interested in connecting with a local chapter? To see where your nearest local chapter is, simply enter your ZIP code at www.aaii.com/chapters or explore the map at www.aaii.com/chapters/map (Figure 4). You can attend the main presentations, engage with special interest groups, or even volunteer your time and expertise—most local chapters are always looking for helping hands.

Supplemental Benefit: The AAII Discover Bank Program

AAII is partnered with Discover Bank to give you access to certificates of deposit (CDs), IRA CDs, money market accounts and online savings accounts earning preferred members-only rates that are higher than the nationally advertised rates on comparable Discover accounts.

Though you may know the company for its credit products, Discover has actually been in the banking business since 1911—and today, it’s emerging as one of the nation’s leading direct banks. As an AAII member saving with Discover, you’ll benefit from:

• Rates that have consistently exceeded the national average¹
• No minimum opening deposit requirement
• Easy and convenient online account management
• 24/7 customer service, both online and by phone
• Accounts insured up to FDIC limits, currently $250,000

Visit https://aaii.discoverbank.com or call Discover at (800) 347-7513 to learn more about these products and the preferred members-only rates you’ll earn.

¹ Based on top 50 U.S. banks by deposit provided by Informa Research Services Inc. as of 5/12/2016.

Academic Awards: Fostering Investment Education and Research

Five papers won awards for investment research from AAII in 2015. The awards are presented as part of AAII’s ongoing effort to encourage education and research in the area of investments and are given for papers that provide insight into investing.

The awards are made in conjunction with the meetings of major finance associations around the country. The best academic paper presented at these meetings is selected by a committee of investment research experts.

AAII awards the writers of winning papers. Papers are selected based on the quality and thoroughness of research and on the contribution to shaping effective investment decisions.

Since the program began in 1983, more than 150 awards have been presented. Recent award-winning papers and recipients include:

“The Effects of Conference Call Content on Market Perceptions of Value Uncertainty and Firm Risk,” by Paul Borochin of the University of Connecticut, James Cicon of the University of Central Missouri, S. McKay Price of Lehigh University and R. Jared DeLisle of Utah State University, awarded by the Eastern Finance Association.

“The Level, Slope and Curve Factor Model for Stocks,” by Charles Clarke of the University of Connecticut, awarded by the Financial Management Association.

“The Consumption Risk of Bonds and Stocks” by Svetlana Bryzgalova of Stanford University and Christian Julliard of the London School of Economics, awarded by the Midwest Finance Association.

“Inside the Director Network: When Insiders Trade Outside Stocks” by Paul D. Koch of the University of Kansas, Henk Berkman of the University of Auckland and Joakim Westerholm of the University of Sydney, awarded by the Southern Finance Association.

“A Market for Lemons in Mutual Fund Management,” by Michael Gibbs of the University of Missouri, Andrew Lynch of the University of Mississippi, Khaled Obaid of the University of Missouri and Kuntara Pukthuanthong of the University of Missouri, awarded by the Southwestern Finance Association.

These papers are technical; however, the AAII Journal does publish the findings of papers that are of particular interest to individual investors. If you would like a copy of a paper, you can contact Kate Peltz at kate@aaii.com or (800) 428-2244.

AAII Privacy Policy

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