THE AAII JOURNAL SEPTEMBER 2022 ISSUE

COVER ARTICLE

Segmenting Growth Stocks With the G-Score

An eight-point scale based on fundamental factors helps to identify attractive growth stocks and avoid weak growth companies.

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Features

in First Cut Stocks,Market Actions

Best-Performing S&P 500 Stocks

By Jack Gilleland

This First Cut seeks to identify the S&P 500 index stocks that have had the highest price change compared to their peers over the last 52 weeks.

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in First Cut Stocks,Market Actions

Worst-Performing S&P 500 Stocks

By Jack Gilleland

This First Cut seeks to identify the S&P 500 index stocks that have had the lowest price change compared to their peers over the last 52 weeks.

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in AAII How-To,Mutual Funds,Tax Strategies

Is Your Mutual Fund Tax-Efficient?

By Wayne A. Thorp

Minimizing the taxable distributions of a mutual fund can boost investors’ aftertax returns.

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in ETFs and Mutual Funds

Owning the Market Through Large-Cap Stock Mutual Funds and ETFs

By Matthew Bajkowski

A large-cap mutual fund or ETF can represent an individual investor’s general buy-and-hold-the-market equity portion of their diversified portfolio.

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in Portfolio Strategies,Small Cap Value Investing

Pains and Gains From Small-Cap Value Stocks

By Paul Merriman

Combining small-cap value and the S&P 500 can provide higher returns and a less painful ride over the long term.

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in Bonds,Closed-End Funds,Preferred Stock

Fixed-Income Risks and Opportunities in a Rising-Rate Environment

By Matthew Crouse

Given recent interest rate increases, many bonds and preferred stocks are now offering attractive yields.

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in AAII Stock Ideas,Value Investing

Getting a Fix on Jim Cullen's Approach to Long-Term Value

By Matt Markowski

The key valuation measurements of low price to earnings, low price to book value and high dividend yield are used to find stocks that have long-term value.

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in Investor Professor

Online Exclusive: Market Breadth's Meaning for Individual Investors

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.

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Notes & Opinions

in Editor's Note

Expectations Matter When It Comes to Growth Investing

By Charles Rotblut

Investors too often misjudge the prospects for growth. They underestimate the growth prospects for value stocks and overestimate the growth prospects for story stocks—especially those with innovative or trendy products.

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in Dispatches

Expense Ratios Can Make or Break Your Portfolio

By Zach Banning

Rolling over an employer-sponsored 401(k) retirement account into an IRA that offers the same mutual funds often leads to lower overall returns.

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in Dispatches

It's Been Difficult for the Fed to Pull Off Economic Soft Landings

By Charles Rotblut

Most prior rate-hike cycles have been followed by recessions, so-called hard landings. Only one of the 11 previous rate-tightening cycles has resulted in a perfect soft landing.

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in Dispatches

Rise in Partisanship Causing Fall in Returns for Shareholders

By Issac Deleon

For more than a decade, executive teams in U.S. firms have become increasingly partisan. Between 2008 and 2020, researchers found that the partisanship of executive teams increased by 7.7 percentage points.

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in Letters to the Editor

Letters

By AAII Staff

Members share their opinions on different ways to define risk, transitioning from the Level3 Passive Portfolio, whether a bond allocation is warranted and where to buy bonds.

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in AAII Community

Investors Weigh In: Is This a Good Time to Do a Roth IRA Conversion?

By Jenna Brashear

Join the AAII Retirement Withdrawals Community and see what members think about doing a Roth conversion in different market environments.

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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.