The American Association of Individual Investors (AAII) PCUG Investment SIG February 9, 2012

AAII What is it? (Per Wikipedia) The American Association of Individual Investors is a nonprofit organization with about 150,000 members [1] [3] The organization markets itself as an unbiased source of investment information because of its not-for-profit status. [1] [3] The organization was founded by James Cloonan, Ph.D. in 1978.James Cloonan, Ph.D.1978

AAII What it is not: (At least not tonight’s topic) o Australian Artificial Intelligence Institute o Air Accident Investigation Institute (Czech) o..\b- February Hyperlinks & Data\a- January Hyperlinks & Data\African American Islamic Institute » About AAII.htm..\b- February Hyperlinks & Data\a- January Hyperlinks & Data\African American Islamic Institute » About AAII.htm

AAII What is its purpose o Its purpose is to educate individual investors regarding stock market portfolios, financial planning, and retirement accounts. [2] AAII “assists individuals in becoming effective managers of their own assets through programs of education, information and research.” [3] [2] [3] o Over the last thirty years, AAII’s members report “investment returns that are consistently higher than those of the stock market as a whole”

AAII Its features / resources: o Guides on investing o Financial planning and retirement resources o Model portfolios o Tax guides o Basic Education o Mutual fund resources o Management of Portfolios o Stock resources o Chapter meetings / investor conferences

AAII A look at the some of their publications: o AAII Journals o AAII Mutual Fund Guides o AAII Model Portfolio

AAII A look at their Web site: o AAII biweekly update s o Investor Classroom o AAII Portfolios o AAII Stock Screens o Download Library o..\b-February Hyperlinks & Data\AAII The American Association of Individual Investors.htm..\b-February Hyperlinks & Data\AAII The American Association of Individual Investors.htm

AAII AAII has a member’s investment sentiment survey that is well known in the industry However; it has the reputation of being a contrarian indicator. Why: This reputation is based on the theory that the public is the "last to know” so its opinions and actions are behind the latest happenings." Hence, when the majority of the public is too bullish or bearish it is an indicator that the market is vulnerable to change.

AAII Summary The AAII is an excellent source of investment information. Like all sources, it needs to be used in comparison with others and proper evaluation They favor small caps vs. large caps, but there are many varying articles about this preference is a good example of when it is not preferable

AAII The End