American Investment Services, Inc.

Disciplined, Diversified, & Cost Effective

June 2017 – Hope Springs Eternal

“Why 2017 Could Be the Year of the Stockpicker”

– Barron’s, Dec. 24, 2016

“Why 2017 Could Be the Year Stock Pickers Regain Their Edge”

–, Jan. 24, 2017

“LEE COOPERMAN’S OMEGA: 2017 is the year for stock pickers”

– Business Insider, Jan. 23, 2017

A more accurate (if less pithy) title for this article might have read “The Cognitive Dissonance of Active Investors is Once Again on Display.” Despite overwhelming data to the contrary, stockpicking “active” managers continue to insist that this is their year.

In this month’s issue we review the latest research to evaluate the efficacy of active management. Over the years, we have documented the failure of experts to successfully forecast security prices. Yet active managers continue to dominate the money management industry. We will therefore continue to review this
data and publish our observations.

Rather than speculate, investors should focus on factors within their control. Investment-related costs are a case-in-point. Intense price competition among index fund providers and discount brokers has been a boon for investors who follow our approach. Most recently, for example, we renegotiated lower transaction costs for clients enrolled in our Professional Asset Management
(PAM) service. The table below provides the transaction costs assessed by the custodial firms that serve our clients:

Also In This Issue:
Indexing:  Too Much of a Good Thing?
How Much Do I Need to Save for Retirement?
The High Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked by Yield
Recommended Investment Vehicles