THE AAII JOURNAL MAY 2019 ISSUE

COVER ARTICLE

Revisiting the Driehaus Momentum Approach

Tweaking the original AAII Driehaus screening strategy by focusing more on recent earnings growth and loosening the momentum filter results in more passing companies and better performance.

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Features

in Bonds,Economic and Market Analysis,Interest Rates

Bond Yields' Role as a Recession Warning Signal

By Charles Rotblut, Campbell Harvey

An interview with the professor who developed the yield curve model for forecasting recessions.

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in Stock Strategies,Value Investing

Economic Moats Matter Less Than a Stock's Valuation

By Brian Nelson

The economic moat concept alone is less important than an evaluation of how the market has priced a company’s future economic value stream.

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in First Cut Stocks

Firms Rich in Cash Relative to Stock Price

By John Bajkowski

A large cash position is often viewed as providing a significant margin of safety. In this month’s First Cut, we identify 30 stocks with a high level of net cash relative to their share price.

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in AAII Model Portfolios,Small Cap Value Investing,Sell Rules

Looking Back on the Pattern of Shadow Stock Sells

By Wayne A. Thorp, John Bajkowski

The portfolio management rules have been constructed to encourage winning stocks to accumulate, while weaker companies are sold.

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in Mutual Funds,From the Archives

The Sell Decision With Mutual Funds: Knowing When to Walk Away

By Albert J. Fredman

There are good reasons for selling a mutual fund, and times when should you stay put.

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in Stock Strategies,Value Investing

Value Investing's Differing Short- and Long-Term Performance Record

By Charles Rotblut

Does value investing still work? An in-depth look at the numbers shows that the answer is more nuanced than you might think.

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Notes & Opinions

in Editor's Note

Monitoring the Risk of Recessions

By Charles Rotblut

There’s quite a bit of useful economic data available on the web if you know where to look. One precursor to a recession, a yield curve inversion, can be seen on many financial and broker websites as well as the Treasury website.

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in Dispatches,Risk

Trailing Stop-Losses Effective at Curtailing Downside Risk

By AAII Staff

A recent study found that trailing stop-loss orders result in higher risk-adjusted returns and also perform particularly well at reducing downside risk.

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in Dispatches

Individual Investors Less Willing to Take on Risk Than Professionals

By AAII Staff

Individual investors tend to follow market trends to determine their portfolio allocation, while institutional investors are more likely to have a highly contrarian attitude. Financial advisers often land somewhere in the middle.

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in Dispatches

Millennials More Optimistic About Retirement Than Older Generations

By Anine Sus

A survey by the Transamerica Center for Retirement Studies looked at how three generations differ in their attitudes toward retirement.

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in Dispatches

Spouses in Two-Income, One-Saver Households Aren’t Saving Enough for Retirement

By AAII Staff

When only one person in a dual-earner household is putting away money for retirement, the couple’s saving rate is too low to sustain two retirees, according to a recent study.

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in Letters to the Editor

Letters

By AAII Staff

Members chime in on the importance of choosing Medicare options and offer additional suggestions on how to do so. Plus, mutual fund alternatives for the Level3 Passive Portfolio are given.

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Expand to Read More

The AAII Journal, a leading investment publication, provides readers with a continuing stream of insights and ideas that focus on how you can improve your investment results. Unlike many investment magazines, ours is completely unbiased, educational and contains no advertising.

AAII has published this prestigious financial journal every month for more than 40 years. Members receive it for free and have access to thousands of evergreen articles online so they can reference information and strategies for previous market situations with a few clicks of the mouse.

Our stock journal helps individual investors manage their portfolios, build sound investment strategies and navigate all types of financial conditions. Articles range from optimizing target-date fund portfolios to retirement account withdrawal strategies and analysis on robo-advisor performance.

The magazine also has recurring features our members find invaluable. Every quarter, we dissect our model stock portfolio and provide updates to its holdings and performance. This analysis helps individual investors manage small-cap value investments.

We also offer an annual tax guide in our financial magazine. This detailed investment magazine issue covers many details that individual investors need to consider when filing their taxes. It keeps readers updated on any recent changes to tax laws and provisions and provides a handy guide to tax implications of personal investments to cut through any tax filing confusion.

Another annual feature covers ETFs (exchange-traded funds) and mutual funds. This edition helps individual investors understand what to look for when investing in funds. Online, we accompany those articles with sortable tables so that members have an interactive component to their investment research. This helps individual investors plan their portfolios and invest with confidence.

Other regular features in the AAII Journal include financial planning, stock ideas and investor professor. Financial planning articles walk investors through the process and difficulties of crafting strategies for creating wealth regardless of age. They also cover difficult situations, such as estate planning, and helpful advice for getting kids and grandchildren interested in investing.

Stock ideas, as the name implies, give readers a peek at new screens and the stocks that pass them. This part of our investing magazine helps readers identify new opportunities in the markets, flagged by a mix of quantitative and qualitative analysis. Because we all, as investors, need ideas, this remains one of the most popular categories.

Investor professor helps readers invest with knowledge and confidence. It deals with contingencies, such as “What happens to your investment if a company goes bankrupt?” and gives actionable advice on what resources you should use when considering a new broker. Our readers enjoy this section because of its practicality and enduring tips.

Frequent internal contributors include president John Bajkowski; AAII Journal editor and vice president Charles Rotblut; Stock Superstars Report lead analyst Wayne A. Thorp; and Dividend Investing editor Derek Hageman. Together, these internal contributors have nearly a century of market wisdom and research, which they share with clear and concise prose to help individual investors improve their knowledge and portfolios.

The AAII Journal also includes frequent guest contributions from the financial and economic space. Articles from outside industry experts differentiate our financial magazine from others and provide additional points of view for our readers. Previous guest authors have included John C. Bogle, founder of Vanguard; Jay Clayton, chairman of the U.S. Securities and Exchange Commission; Charles Schwab; and Nobel laureate and Yale professor Robert Shiller.

We hope you’ll enjoy our articles and, if you’re not a member, consider joining the Association so you can get our prestigious magazine sent to your door every month.