Investor Professor Articles
What Market Volatility Really Is and How to Navigate It
June 2025 by Charles Rotblut
Volatility refers to the magnitude of movement instead of a single direction; AAII founder James Cloonan encouraged investors to focus on “real risk.”
June 2025 by Charles Rotblut
Volatility refers to the magnitude of movement instead of a single direction; AAII founder James Cloonan encouraged investors to focus on “real risk.”
Sustainable Investing: The Difference Between Growth and Value-Based Strategies
September 2024 by Wayne A. Thorp
The distinctions between different types of sustainable investing are becoming crucial in guiding investor choices and influencing the broader market dynamics.
September 2024 by Wayne A. Thorp
The distinctions between different types of sustainable investing are becoming crucial in guiding investor choices and influencing the broader market dynamics.
Online Exclusive: What Are Donor-Advised Funds?
December 2022 by Matthew Bajkowski
Donor-advised funds allow donors to take an immediate tax deduction on their contributions now without the need to decide at the same time where the funds will ultimately be gifted.
December 2022 by Matthew Bajkowski
Donor-advised funds allow donors to take an immediate tax deduction on their contributions now without the need to decide at the same time where the funds will ultimately be gifted.
Online Exclusive: What to Know About Single-Stock ETFs
November 2022 by Matthew Bajkowski
The new single-stock ETFs carry unique risks and are only meant for sophisticated investors who are active traders.
November 2022 by Matthew Bajkowski
The new single-stock ETFs carry unique risks and are only meant for sophisticated investors who are active traders.
Online Exclusive: Saving Early for Offspring With Custodial Accounts
October 2022 by Matthew Bajkowski
Interested in teaching a child or grandchild about saving and investing? You might consider setting up a custodial account for them while they are minors.
October 2022 by Matthew Bajkowski
Interested in teaching a child or grandchild about saving and investing? You might consider setting up a custodial account for them while they are minors.
Online Exclusive: Market Breadth's Meaning for Individual Investors
September 2022 by Matthew Bajkowski
Market breadth is often used by fundamental investors to help determine the most opportune time to execute a trade once a decision to buy or sell has already been made.
September 2022 by Matthew Bajkowski
Market breadth is often used by fundamental investors to help determine the most opportune time to execute a trade once a decision to buy or sell has already been made.
Online Exclusive: What Is the Yield Curve?
August 2022 by Matthew Bajkowski
The yield curve of U.S. Treasuries is a beneficial tool for investors in that it may identify major potential changes in the economy ahead of their occurrence. It is also free to the public and easy to use.
August 2022 by Matthew Bajkowski
The yield curve of U.S. Treasuries is a beneficial tool for investors in that it may identify major potential changes in the economy ahead of their occurrence. It is also free to the public and easy to use.
Online Exclusive: Delving Into the Definition of the CAPE Ratio
July 2022 by Matthew Bajkowski
Dividing current market price by a 10-year average of earnings can be used to predict long-term performance of a stock or the market.
July 2022 by Matthew Bajkowski
Dividing current market price by a 10-year average of earnings can be used to predict long-term performance of a stock or the market.
Online Exclusive: Understanding the Breakeven Inflation Rate
June 2022 by Matthew Bajkowski
The breakeven inflation rate is a helpful guide for determining minimal rates of return required to maintain wealth in real terms.
June 2022 by Matthew Bajkowski
The breakeven inflation rate is a helpful guide for determining minimal rates of return required to maintain wealth in real terms.
Online Exclusive: The Difference Between Sustainable Investing and Impact Investing
May 2022 by Matthew Bajkowski
Investors deeply engaged with the emerging sustainable investing products are those who have learned to match the real practice to its name and understand which sustainable investing strategies they have access to.
May 2022 by Matthew Bajkowski
Investors deeply engaged with the emerging sustainable investing products are those who have learned to match the real practice to its name and understand which sustainable investing strategies they have access to.
Online Exclusive: What Is the Put-Call Ratio?
April 2022 by Matthew Bajkowski
As a measure of market sentiment, the put-call ratio can be of help to determine when the market is getting too bullish or bearish.
April 2022 by Matthew Bajkowski
As a measure of market sentiment, the put-call ratio can be of help to determine when the market is getting too bullish or bearish.
Online Exclusive: Understanding Bond Yields
March 2022 by Matthew Bajkowski
The stream of income that a bond or bond fund provides is characterized as its yield, but the term has different meanings for the two types of securities.
March 2022 by Matthew Bajkowski
The stream of income that a bond or bond fund provides is characterized as its yield, but the term has different meanings for the two types of securities.
Online Exclusive: Understanding Risk-Adjusted Returns via the Sharpe Ratio
February 2022 by Matthew Bajkowski
When comparing the performance of two securities, funds or portfolios, investors must consider risk-adjusted returns to see if they are being adequately compensated for the risk they are assuming.
February 2022 by Matthew Bajkowski
When comparing the performance of two securities, funds or portfolios, investors must consider risk-adjusted returns to see if they are being adequately compensated for the risk they are assuming.
Online Exclusive: How to Gain Access to Private Equity
January 2022 by Matthew Bajkowski
Although there are some methods for individual investors to gain access to private equity, these are either in the form of diluted exposure in open-end mutual funds or exchange-traded closed-end funds that are a very small part of the retail investment market.
January 2022 by Matthew Bajkowski
Although there are some methods for individual investors to gain access to private equity, these are either in the form of diluted exposure in open-end mutual funds or exchange-traded closed-end funds that are a very small part of the retail investment market.
Online Exclusive: What Is Tax-Loss Harvesting?
December 2021 by Matthew Bajkowski
Tax-loss harvesting is the use of realized losses to offset realized gains, lowering taxes for the current year and potentially future years, too.
December 2021 by Matthew Bajkowski
Tax-loss harvesting is the use of realized losses to offset realized gains, lowering taxes for the current year and potentially future years, too.
Online Exclusive: Stock Order Types Explained
November 2021 by Matthew Bajkowski
For most individual investors who are following a buy-and-hold strategy, there are three basic order types that will cover the majority of your stock trades and allow for control over execution.
November 2021 by Matthew Bajkowski
For most individual investors who are following a buy-and-hold strategy, there are three basic order types that will cover the majority of your stock trades and allow for control over execution.
Online Exclusive: Defensive Versus Cyclical Stocks
October 2021 by Matthew Bajkowski
The profitability of cyclical stocks is tied to the status of the economy, while defensive stocks tend not to lose their value during downturns.
October 2021 by Matthew Bajkowski
The profitability of cyclical stocks is tied to the status of the economy, while defensive stocks tend not to lose their value during downturns.
Online Exclusive: Roth IRA vs. Traditional IRA—Differences You Should Know
September 2021 by Matthew Bajkowski
The most powerful aspect of any IRA is its tax advantages; however, traditional and Roth IRAs approach tax advantages differently.
September 2021 by Matthew Bajkowski
The most powerful aspect of any IRA is its tax advantages; however, traditional and Roth IRAs approach tax advantages differently.
Online Exclusive: Mutual Funds vs. ETFs—What Makes Them Different?
August 2021 by Matthew Bajkowski
These two categories of professionally managed funds differ in important ways that should be taken into consideration before settling on an investment.
August 2021 by Matthew Bajkowski
These two categories of professionally managed funds differ in important ways that should be taken into consideration before settling on an investment.
Mini-Tender Offers May Not Be in Investors’ Best Interest
July 2021 by Charles Rotblut
Mini-tender offers do not fall under the same disclosure rules as regular tender offers from companies that want to buy your shares.
July 2021 by Charles Rotblut
Mini-tender offers do not fall under the same disclosure rules as regular tender offers from companies that want to buy your shares.
Online Exclusive: What Is Cryptocurrency?
July 2021 by Matthew Bajkowski
Cryptocurrencies are exciting and the interest in them is not abating. However, what’s important to the individual investor is understanding the basics of the technology.
July 2021 by Matthew Bajkowski
Cryptocurrencies are exciting and the interest in them is not abating. However, what’s important to the individual investor is understanding the basics of the technology.
Online Exclusive: Defining Inflation for Your Portfolio
June 2021 by Matthew Bajkowski
Any time in history when a nation has seen a dramatic increase in available cash, inflation has been a concern. How should investors respond when inflation heats up and poses risk to their portfolios?
June 2021 by Matthew Bajkowski
Any time in history when a nation has seen a dramatic increase in available cash, inflation has been a concern. How should investors respond when inflation heats up and poses risk to their portfolios?
Online Exclusive: Who Are Retail Investors?
May 2021 by Matthew Bajkowski
Retail investors are of great importance to the U.S. economy and financial markets, and they have numerous advantages over institutional investors.
May 2021 by Matthew Bajkowski
Retail investors are of great importance to the U.S. economy and financial markets, and they have numerous advantages over institutional investors.
Online Exclusive: What Is EBITDA? Calculation and Examples
April 2021 by Matthew Bajkowski
EBITDA can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and accounting decisions.
April 2021 by Matthew Bajkowski
EBITDA can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and accounting decisions.
Special Purpose Acquisition Companies (SPACs) Explained
October 2020 by Derek J. Hageman
With a SPAC, an investment firm raises cash from public investors with the goal of acquiring a private company to bring it public.
October 2020 by Derek J. Hageman
With a SPAC, an investment firm raises cash from public investors with the goal of acquiring a private company to bring it public.
Times Interest Earned Ratio: Measuring a Firm’s Ability to Meet Its Obligations
August 2020 by Derek J. Hageman
One of the lesser-known measures that helps determine the financial strength of a company is the interest coverage ratio.
August 2020 by Derek J. Hageman
One of the lesser-known measures that helps determine the financial strength of a company is the interest coverage ratio.
Corporate Bankruptcy and Your Investments
July 2020 by Charles Rotblut
Once a bankruptcy is announced, investors have the opportunity to either sell their holdings or wait for the bankruptcy proceedings to be completed.
July 2020 by Charles Rotblut
Once a bankruptcy is announced, investors have the opportunity to either sell their holdings or wait for the bankruptcy proceedings to be completed.
Resources for Checking Out an Adviser or Broker
April 2020 by Ryan Reeh
You can find out a lot from a Google search, but BrokerCheck and the SEC’s IAPD databases are treasure troves of disclosure information on investment advisers and brokerage firms.
April 2020 by Ryan Reeh
You can find out a lot from a Google search, but BrokerCheck and the SEC’s IAPD databases are treasure troves of disclosure information on investment advisers and brokerage firms.
Essential Dividend Dates You Should Know
March 2020 by Derek J. Hageman
The dates used to determine who is eligible to receive a dividend and when it will be paid can affect when you should buy or sell stock.
March 2020 by Derek J. Hageman
The dates used to determine who is eligible to receive a dividend and when it will be paid can affect when you should buy or sell stock.
Three Pillars for Successful Dividend Investing
August 2019 by Derek J. Hageman
A look at a total-return strategy that seeks stocks that have the potential to rise in price and make larger dividend payments in the future.
August 2019 by Derek J. Hageman
A look at a total-return strategy that seeks stocks that have the potential to rise in price and make larger dividend payments in the future.
Bitcoin, Blockchain and Initial Coin Offerings
April 2018 by Charles Rotblut
A primer on what cryptocurrencies, blockchain technology and ICOs are.
April 2018 by Charles Rotblut
A primer on what cryptocurrencies, blockchain technology and ICOs are.
Reverse Mortgages
September 2017 by Charles Rotblut
An overview of how reverse mortgages work and their costs, plus explanations of key terms.
September 2017 by Charles Rotblut
An overview of how reverse mortgages work and their costs, plus explanations of key terms.
Beware of SAFE Offerings From Crowdfunded Companies
July 2017 by Lori J. Schock
Simple agreements for future equity may sound enticing, but they are not an actual equity stake in the company.
July 2017 by Lori J. Schock
Simple agreements for future equity may sound enticing, but they are not an actual equity stake in the company.
Company Size and Investment Returns
April 2017 by Charles Rotblut
Small-cap stocks have historically realized higher returns than large-cap stocks, but this outperformance does not occur every year.
April 2017 by Charles Rotblut
Small-cap stocks have historically realized higher returns than large-cap stocks, but this outperformance does not occur every year.
Health Savings Accounts
July 2016 by Charles Rotblut
HSAs allow for dollars to be set aside tax-free to pay for future medical expenses.
July 2016 by Charles Rotblut
HSAs allow for dollars to be set aside tax-free to pay for future medical expenses.
A Satirical Take on Financial Terminology
January 2016 by Jason Zweig
Financial terms often mean the opposite of what they appear to signify. Poking fun can unveil weaknesses and risks not so apparent on first glance.
January 2016 by Jason Zweig
Financial terms often mean the opposite of what they appear to signify. Poking fun can unveil weaknesses and risks not so apparent on first glance.
Five Key Financial Concepts
October 2015 by Hareesh N Jayanthi
How financially literate are you? Take this quiz to find out.
October 2015 by Hareesh N Jayanthi
How financially literate are you? Take this quiz to find out.
How to Read a 10-K Filing
July 2015 by Charles Rotblut
This annual report, required by the SEC, offers insight into a company’s business and the potential risks shareholders may face.
July 2015 by Charles Rotblut
This annual report, required by the SEC, offers insight into a company’s business and the potential risks shareholders may face.
Earnings Estimates
May 2015 by Charles Rotblut
Earnings surprises and earnings estimates revisions can drive stock price momentum.
May 2015 by Charles Rotblut
Earnings surprises and earnings estimates revisions can drive stock price momentum.
Cash Dividend Types, Dates and Taxes
July 2014 by Charles Rotblut
The various dividend terms all have important implications for your portfolio.
July 2014 by Charles Rotblut
The various dividend terms all have important implications for your portfolio.
How Liquidity Impacts the Attractiveness of an Asset
April 2013 by Charles Rotblut
Greater levels of liquidity attract more buyers and sellers, while lower levels of liquidity deter some would-be investors.
April 2013 by Charles Rotblut
Greater levels of liquidity attract more buyers and sellers, while lower levels of liquidity deter some would-be investors.
Corporate Bankruptcy and Your Investments
July 2011 by Charles Rotblut
A corporate bankruptcy filing creates tax challenges; here is what you need to know.
July 2011 by Charles Rotblut
A corporate bankruptcy filing creates tax challenges; here is what you need to know.
Determining Your Allocation at Retirement
July 2010 by Charles Rotblut
There is no strategy for retirement allocation that universally applies to all investors. The best place to start is to determine your needs.
July 2010 by Charles Rotblut
There is no strategy for retirement allocation that universally applies to all investors. The best place to start is to determine your needs.
Bond Terminology
June 2010 by AAII Staff
Bond terminology, some of the common terminology used to explain bonds, here is a brief primer.
June 2010 by AAII Staff
Bond terminology, some of the common terminology used to explain bonds, here is a brief primer.
Proxy Voting
April 2010 by Charles Rotblut
Proxy ballots give investors a voice and proxy materials contain important information.
April 2010 by Charles Rotblut
Proxy ballots give investors a voice and proxy materials contain important information.
Investing in Gold
March 2010 by Charles Rotblut
There are several choices for investors who want to add an allocation to gold to their portfolios. What you need to know about the various options.
March 2010 by Charles Rotblut
There are several choices for investors who want to add an allocation to gold to their portfolios. What you need to know about the various options.
Dogs of the Dow
January 2010 by Charles Rotblut
Every January, Dogs of the Dow draws attention. A look at the current list, and a suggestion of a better way to use the screen.
January 2010 by Charles Rotblut
Every January, Dogs of the Dow draws attention. A look at the current list, and a suggestion of a better way to use the screen.
“Stock” Supply Data: Inventory Turnover
September 2009 by AAII Staff
For stock investors analyzing prospective investments and their own holdings, one important issue concerns how much money a company has tied up in its inventory. How can you judge a company's ability to manage inventory? Two operating performance measures are particularly useful in analyzing how efficiently a firm is managing its "stock."
September 2009 by AAII Staff
For stock investors analyzing prospective investments and their own holdings, one important issue concerns how much money a company has tied up in its inventory. How can you judge a company's ability to manage inventory? Two operating performance measures are particularly useful in analyzing how efficiently a firm is managing its "stock."
Munis vs. Taxables: How to Determine the Taxable Equivalent Yield
July 2009 by Maria Crawford Scott
Munis offer income that is sheltered from federal taxes, but at yields that are typically lower than taxable bonds. How do you compare bonds yields that receive different tax treatments? A relatively simple formula puts the yields on an equal tax footing.
July 2009 by Maria Crawford Scott
Munis offer income that is sheltered from federal taxes, but at yields that are typically lower than taxable bonds. How do you compare bonds yields that receive different tax treatments? A relatively simple formula puts the yields on an equal tax footing.
Dividend Safety Signs and Warning Flags
June 2009 by Maria Crawford Scott
Many investors have sought shelter from the stock market storm in more mature dividend-paying companies. But in this market environment, how can you be sure a company has the financial resources to continue payments? Signs and warning flags you can use to evaluate the safety of a company's dividend payment stream.
June 2009 by Maria Crawford Scott
Many investors have sought shelter from the stock market storm in more mature dividend-paying companies. But in this market environment, how can you be sure a company has the financial resources to continue payments? Signs and warning flags you can use to evaluate the safety of a company's dividend payment stream.
The Role of Risk-Free Assets in Your Long-Term Portfolio
April 2009 by AAII Staff
In today's market environment, the exclusive focus is on risk-free assets for the short term. Two years ago, the same assets were considered "too boring" over the long term. What role should they play in your portfolio? The answer requires both a short-term and a long-term perspective.
April 2009 by AAII Staff
In today's market environment, the exclusive focus is on risk-free assets for the short term. Two years ago, the same assets were considered "too boring" over the long term. What role should they play in your portfolio? The answer requires both a short-term and a long-term perspective.
Where Credit Is Due: A Look at the Ratings
February 2009 by AAII Staff
There are many factors that individuals must consider when making investments in fixed-income securities. Current bond yields, current bond prices, and current as well as future interest rates all may have a big impact on the return of a fixed-income investment.
February 2009 by AAII Staff
There are many factors that individuals must consider when making investments in fixed-income securities. Current bond yields, current bond prices, and current as well as future interest rates all may have a big impact on the return of a fixed-income investment.
All Averages Are Not Created Equal
January 2009 by AAII Staff
Average returns are reported in many different types of listings. Most individuals assume those averages are all calculated in the same way. In fact, they are not. A look at the different "averages," and how they are calculated.
January 2009 by AAII Staff
Average returns are reported in many different types of listings. Most individuals assume those averages are all calculated in the same way. In fact, they are not. A look at the different "averages," and how they are calculated.
Making Sense of Profits Using Profitability Ratios
September 2008 by AAII Staff
Long-term investors buy stocks with the expectation that the company will produce a growing stream of earnings. Profits point to a firm's growth and staying power. But profit figures are absolute numbers that don't relate to the size of the company. How can you put the numbers into context? A look at profitability ratios.
September 2008 by AAII Staff
Long-term investors buy stocks with the expectation that the company will produce a growing stream of earnings. Profits point to a firm's growth and staying power. But profit figures are absolute numbers that don't relate to the size of the company. How can you put the numbers into context? A look at profitability ratios.
How to Calculate Your Portfolio's Return
August 2008 by Jenna Brashear
Discover two methods you can use to calculate your portfolio’s return, which is the gain or loss realized over a period of time.
August 2008 by Jenna Brashear
Discover two methods you can use to calculate your portfolio’s return, which is the gain or loss realized over a period of time.
Stand Up and Be Counted: How to Value a Stream of Payments
July 2008 by AAII Staff
Are you overlooking a large pool of assets? That may occur when it is hard to put a number on an asset--for example, valuing a guaranteed steady payment stream, such as pension plan and Social Security payments, for retirees. Ignoring those assets may cause you to be too over-invested in fixed income. But how do you value a stream of payments? A look at one approach
July 2008 by AAII Staff
Are you overlooking a large pool of assets? That may occur when it is hard to put a number on an asset--for example, valuing a guaranteed steady payment stream, such as pension plan and Social Security payments, for retirees. Ignoring those assets may cause you to be too over-invested in fixed income. But how do you value a stream of payments? A look at one approach
Market Barometers: A Look at Stock Indexes and How They Work
June 2008 by AAII Staff
You don't need a weather man to know which way the wind blows, but you do need a stock market index to know which way the stock winds are blowing. A look at stock market indexes and what they are telling you.
June 2008 by AAII Staff
You don't need a weather man to know which way the wind blows, but you do need a stock market index to know which way the stock winds are blowing. A look at stock market indexes and what they are telling you.
Great Expectations: Earnings Estimates and Their Impact on Stock Prices
April 2008 by AAII Staff
How often have you seen a stock's price fall after the company announced increased earnings, or rise after it announced that earnings fell? Expectations play a key role in determining a stock's price. A look at how earnings estimates can impact price.
April 2008 by AAII Staff
How often have you seen a stock's price fall after the company announced increased earnings, or rise after it announced that earnings fell? Expectations play a key role in determining a stock's price. A look at how earnings estimates can impact price.
Extreme Anxiety: Evaluating Current Market Levels
February 2008 by AAII Staff
It is easy to be swept up in deep market swings. But markets rarely stay at historical extremes. The big question is: What is "normal"? One practical approach is to examine relative fundamental values over time.
February 2008 by AAII Staff
It is easy to be swept up in deep market swings. But markets rarely stay at historical extremes. The big question is: What is "normal"? One practical approach is to examine relative fundamental values over time.
How Interest Rate Changes Affect the Price of Bonds
January 2008 by AAII Staff
No matter the cause of interest rate movements, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values. But knowing how much bond prices can change when interest rates change will help you keep your bond risk to a level you can live with.
January 2008 by AAII Staff
No matter the cause of interest rate movements, the impact on the bond investor is the same: Rising interest rates reduce existing bond values and falling interest rates increase existing bond values. But knowing how much bond prices can change when interest rates change will help you keep your bond risk to a level you can live with.
Currency Exchange Rates: The International Wild Card
November 2007 by AAII Staff
Think you're hot in the international markets? Think again--your high-flying returns may owe more to currency rate changes than to smart selections.
November 2007 by AAII Staff
Think you're hot in the international markets? Think again--your high-flying returns may owe more to currency rate changes than to smart selections.
Developing an Intuitive Feel for the Mechanics of Growth
September 2007 by AAII Staff
Major investment and planning decisions require judgments concerning growth. But most investors don't understand growth mechanics, particularly over long time periods. How to develop an intuitive feel for growth figures--without using a financial calculator.
September 2007 by AAII Staff
Major investment and planning decisions require judgments concerning growth. But most investors don't understand growth mechanics, particularly over long time periods. How to develop an intuitive feel for growth figures--without using a financial calculator.
Developing an Intuitive Feel for the Mechanics of Growth
September 2007 by AAII Staff
Major investment and planning decisions require judgments concerning growth. But most investors don't understand growth mechanics, particularly over long time periods. How to develop an intuitive feel for growth figures--without using a financial calculator.
September 2007 by AAII Staff
Major investment and planning decisions require judgments concerning growth. But most investors don't understand growth mechanics, particularly over long time periods. How to develop an intuitive feel for growth figures--without using a financial calculator.
Will the Real P/E Please Stand Up?
August 2007 by AAII Staff
A brush-up on basic investing terms and concepts. This issue explores the many ways to calculate P/Es and the wealth of information they provide about expectations.
August 2007 by AAII Staff
A brush-up on basic investing terms and concepts. This issue explores the many ways to calculate P/Es and the wealth of information they provide about expectations.
What's in a Yield?
July 2007 by AAII Staff
Understand the many meanings of yield for bond and fund investors.
July 2007 by AAII Staff
Understand the many meanings of yield for bond and fund investors.
How Interest Rate Changes Affect the Price of Bonds
by AAII Staff
Interest rates are changing. As a bond investor, does that make you happy or sad? The key to happiness may be more complicated than you thought.
by AAII Staff
Interest rates are changing. As a bond investor, does that make you happy or sad? The key to happiness may be more complicated than you thought.
Measured Reality: What It Takes to Reach a Net Return Goal
by AAII Staff
Many strategies promise to "beat the market" but fail to deliver what they promise because their stated return goals are "gross" returns--before taxes and costs. How can you translate those goals into a reasonable expectation of what the strategy's actual--net--return will be? A look at one approach.
by AAII Staff
Many strategies promise to "beat the market" but fail to deliver what they promise because their stated return goals are "gross" returns--before taxes and costs. How can you translate those goals into a reasonable expectation of what the strategy's actual--net--return will be? A look at one approach.
Measured Reality: What It Takes to Reach a Net Return Goal
by AAII Staff
Many strategies promise to "beat the market" but fail to deliver what they promise because their stated return goals are "gross" returns--before taxes and costs. Here's how to translate those goals into a reasonable expectation of what the strategy's actual--net--return will be.
by AAII Staff
Many strategies promise to "beat the market" but fail to deliver what they promise because their stated return goals are "gross" returns--before taxes and costs. Here's how to translate those goals into a reasonable expectation of what the strategy's actual--net--return will be.