common cents investment group welcome! monday september 16 th
TRANSCRIPT
Agenda• CCIG website update• DonorsPlay• Estimize.com• Last week in the market• Market news• Industry movement
• Choosing a brokerage firm• Investopedia Simulator• Random stock pick & discussion
ccig.osu.eduUpdates about meeting timesAll PowerPoint presentations (2010 –
present)Resources
◦Recommended reading list◦Online resources
Donors PlayNew fundraising programTest out new apps!Play new game each week for 5
minutes
Text in number: 650-319-7142Group name: ccig
http://www.youtube.com/watch?v=bYO1v8Xt6BE&feature=youtu.be
estimize.comCheck out this new resource!!!Buy-side earnings estimates900 stocks each quarterConsensus of professionals
◦ More accurate than Wall Street 69.5% of the time
Post your own estimates◦Rankings on how you perform
against Wall Street◦Exposure to professionals
Last Week in the Market
• Twitter files for initial public offering (IPO)
• Dell going private update (finally)
http://finance.yahoo.com/video/dow-3-week-180800743.html
TwitterFiled for IPOKept it a secret for awhile?
◦Trying to avoid over anticipation◦Doesn’t want to end up like Facebook
Less than $1billion in annual revenue
Dell Goes Private$24.9 billion bid with Silver Lake
Management◦Carl Icahn
Shareholders to receive $13.75/share◦Plus special dividend $0.13/share
Dell plans to expand in personal computer & tablet markets◦Also expanding sales initiatives
Industry UpdateBasic Metals
2.66%Communication
Services 2.74%Consumer Cyclical
2.96%Consumer Defensive
2.28%Energy
1.34%Financial Services
2.67%
Healthcare1.63%
Industrials2.68%
Real Estate1.60%
Technology 2.31%Utilities
2.34%
http://library.morningstar.com/Returns/CapWtdSectorReturns.html
Quantitative Easing (QE)Started in USA in November
2008, right after Lehmann Brother collapsed
Print money to buy bonds. ◦Is it monetary policy or fiscal policy?
4 rounds till now: ◦QE 1, QE2, (U)QE 3, (U)QE4
Side Effect: Arab Spring◦Hunger Revolution
QE Tapering
Current Federal Reserve Chairman Ben Bernanke announced on May 22, 2013
Slow down asset purchases Could start in September 2013, but December 2013
at the latest By mid-2014, all asset purchases should STOP! Possible Expectations:
◦ 1. US Dollar appreciates its value; ◦ 2. US stock market down (could be -20% at most)◦ 3. Expect the increase in interest rate in 2015◦ 4. 10-year Treasury Bond yield goes up (to 5% in 2015), bond price drops◦ 5. housing market faces a small hole in short term
Next Fed ChairpersonLARRY SUMMERSFormer Obama’s National Economic Advisor HawkishDROPPED ON 9/15/2013
JANET YELLENCurrent Fed Vice PresidentPresident of San Francisco Federal Reserve BankDovish
Donald KohnFormer Vice President of Federal Reserve Bank
What to expect next?Federal Open Market Committee
(FOMC) meeting, September 17 ~18
You will know the detailed tapering plan soon!
Obama may announce the nomination of the next Fed Chairman soon after FOMC meeting
September 22: German Election
BrokeragesBroker – someone who manages
transactions between buyer and seller for a commission
Online brokers are probably what you will use◦Execute all trades over internet◦Online research◦Trading platforms◦Help
Interactive Brokers Group, Inc. (IB) is an online discount brokerage firm in the United States. The company traces its origin to 1977 when Thomas Peterffy bought a seat on the American Stock Exchange as an individual market maker, and formed T.P. & Co. the following year. IB consists of many subsidiaries operating on most major stock, futures, bonds, forex, and options exchanges worldwide. The company commenced a public offering on 4 May 2007 under the NASDAQ ticker symbol "IBKR".[1]]
-----From Wikipedia
Placing a trade
Symbol choose tickerAction buy, sell, sell shortQuantity number of shares to buyOrder type market order, stop, limitTiming day only, good until cancelled
Investopedia SimulatorTry new investing strategiesCompete with other membersLong, short, margin, optionsResearchView everyone’s trade historyCCIG account will trade value
oriented
Investopedia Simulator Tutorial
First register
Then go to Simulator
http://www.investopedia.com/simulator/Home.aspx
Random Stock Pick & AnalysisPrice/Earings ?Price/Earings/Growth ?Price/Book ?Industry comparison ?Analyst Opinion ?Chart ?