American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

Jan. 2021 – New Year’s Resolutions

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With 2020 behind us, we can look back upon one of the most tumultuous calendar years in capital market history. The pandemic and subsequent shutdown of economic activity caused disruption on a global scale. Investors who did not panic were amply rewarded as the market finished the full year with a gain of nearly 21 percent. We recap the full year in the following pages.

To strengthen your resolve for whatever 2021 may bring, we once again suggest these timeless resolutions:

• I will remind myself that investing is not a form of entertainment— if I have an urge to gamble, I will go to Las Vegas.
• I will stick to my plan.
• I will not attempt to pick winning stocks.
• I will ignore market prognosticators.
• I will ensure that my holdings are adequately diversified within each asset class I own.
• I will focus on controlling my investment-related costs.
• I will stay abreast of changes in investment-related tax laws.
• I will not purchase any financial instrument that I do not understand.
• I will ignore money managers or others selling products rather than advice.
• I will take full advantage of my qualified retirement plans by making the maximum allowable contributions consistent with my budget.
• I will hold my least tax-efficient assets in my tax-deferred accounts.
• I will rebalance my portfolio infrequently, but at regular intervals regardless of the current state of the markets.
• I will not allow the price I have paid for a security to influence my future investment decisions—except for tax considerations regarding capital gains and losses.
• At year end, I will harvest tax losses simply, without deviating from my target portfolio allocations, by selling and buying index-type funds within the same asset class.
• I will appreciate the simplicity of the AIS approach. Instead of worrying about factors that are not within my control, I will establish a clear plan and turn my attention to enjoying life.

Also In This Issue

Year End Capital Market Review
Credit Reports: What You Should Know
Gold and 2021 Hindsight
The High Yield Dow Strategy
The Dow Jones Industrials Ranked by Yield
Asset Class Investment Vehicles


American Investment Services, Inc. (AIS) is an SEC Registered Investment Adviser* founded in 1978.

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*Registration with the U.S. Securities and Exchange Commission does not imply a certain level of skill or training.

The information provided does not constitute investment or tax advice and it should not be relied on as such. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor. It should not be considered a solicitation to buy or an offer to sell a security. All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and AIS shall have no liability for decisions based on such information.

Any mention of commercial products or reference to commercial organizations is for information only; it does not imply recommendation or endorsement by AIS nor does it imply that the products mentioned are necessarily the best available for the purpose.