Below is the weekly summation and though this is a holiday weekend and I would ordinarily do this at the end of the holiday, I'm doing it tonight since my computer's been flaky. I may not be able to do it Monday night. The positives are continued modest economic recovery with jobless claims, unemployment and layoffs all down from July. The big negative of course was Thursday, the worst trading day since the March crash. The bonus this Sunday is yet another informative article from the AAII this time on the AAII strategy for making rules for buying and selling, regardless of whether you're a short-term trader or buy-and-hold. Have a great Labor Day!
Succinct Summations for the week ending September 4th, 2020
Positives:
1. Economy continues to slowly heal from the pandemic devastation.
2. Jobless claims fell 77k w/o/w from 958k to 881k.
3. Unemployment rate came in at 8.4%, below the previous 10.2%.
4. Corporate layoffs came in at 115,762 for August, below the previous 262,649.
5. Factory orders rose 6.4% m/o/m, above the expected increase of 6.0%
Negatives:
1. FAANMGs get smushed on worst trading day of the year since the March crash.
2. Non-farm payrolls rose 1.371M in August, below the expected increase of 1.400M.
3. Home mortgage apps fell 0.2% w/o/w, below the previous increase of 0.4%.
4. Private payrolls rose by 428k, below the expected increase of 900k.
5. Construction spending rose 0.1%, below the expected increase of 1.0%.
 | | |
|  AAII Investor UpdateTHURSDAY, SEPTEMBER 3, 2020
| |
| | |
| | |
| |
Dear Member, When we introduced the project we’ve code-named “ The AAII Way,” some AAII members asked us to include rules governing the addition and deletion of stocks. The challenge in providing specific rules is the varied manners in which individual investors trade. Laying out specific rules for a value-oriented, buy-and-hold strategy won’t necessarily be of use to a growth-oriented investor who is willing to trade more frequently.  There is a middle ground between giving specific rules and simply telling investors to write down what would prompt them to buy and sell. (Though we strongly believe every investor—be they an individual or institutional investor—should have written buy and sell rules.) The middle ground is to provide guidelines based on investing style. This will help each of you to formulate rules based on your preferences. We’re going to start the conversation this week. The initial conversation will carry over until at least next week’s Investor Update. Hence, the “Part 1” in today’s title. Before getting into specifics, there are broad characteristics of successful stock investing strategies for all types of investors—from the short-term chartists to those who seek to minimize turnover as much as possible. They include: • Understanding why you bought a stock and what changes would cause you to sell it; • A systematic and repeatable process for deciding what to buy and sell; • Simple enough for you to fully understand and routinely follow; • Cost effective; • Reflective of your investing time horizon, allocation needs, desired turnover levels and tolerance for risk; • Require only as much time as you are reasonably able and willing to devote; • Written or typed rules that are easily accessible when you need to make a decision. |
|
No comments:
Post a Comment