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Common Cents Investment Group

Common Cents Investment Group. Welcome! Monday September 16 th. 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. c cig.osu.edu.

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Common Cents Investment Group

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  1. Common CentsInvestment Group Welcome! Monday September 16th

  2. 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

  3. ccig.osu.edu • Updates about meeting times • All PowerPoint presentations (2010 – present) • Resources • Recommended reading list • Online resources

  4. Donors Play • New fundraising program • Test out new apps! • Play new game each week for 5 minutes • Text in number:  650-319-7142 • Group name: ccig http://www.youtube.com/watch?v=bYO1v8Xt6BE&feature=youtu.be

  5. estimize.com • Check out this new resource!!! • Buy-side earnings estimates • 900 stocks each quarter • Consensus 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

  6. estimize.com

  7. 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

  8. Twitter • Filed for IPO • Kept it a secret for awhile? • Trying to avoid over anticipation • Doesn’t want to end up like Facebook • Less than $1billion in annual revenue

  9. 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

  10. Industry Update • Basic Metals2.66% • Communication Services 2.74% • Consumer Cyclical2.96% • Consumer Defensive 2.28% • Energy1.34% • Financial Services2.67% • Healthcare1.63% • Industrials2.68% • Real Estate1.60% • Technology 2.31% • Utilities2.34% http://library.morningstar.com/Returns/CapWtdSectorReturns.html

  11. Macro Update 9/9/2013 ~ 9/16/2013 WeiyiXie

  12. 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

  13. 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

  14. Next Fed Chairperson LARRY SUMMERS Former Obama’s National Economic Advisor Hawkish DROPPED ON 9/15/2013 JANET YELLEN Current Fed Vice President President of San Francisco Federal Reserve Bank Dovish Donald Kohn Former Vice President of Federal Reserve Bank

  15. 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

  16. Brokerages • Broker – 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

  17. Brokerages http://www.nasdaq.com/investing/online-brokers/

  18. 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

  19. How Commissions Affect • 26 trades • $6.95/trade • 26 x 2 x $6.95 = $361.40 • $361.40/$5,000 = 7.23%

  20. Requirements

  21. Placing a trade Symbol  choose ticker Action  buy, sell, sell short Quantity  number of shares to buy Order type  market order, stop, limit Timing  day only, good until cancelled

  22. Example Brokerage

  23. Example Trading Platform

  24. Example Trading Platform

  25. Investopedia Simulator • Try new investing strategies • Compete with other members • Long, short, margin, options • Research • View everyone’s trade history • CCIG account will trade value oriented

  26. Investopedia Simulator Tutorial • First register • Then go to Simulator http://www.investopedia.com/simulator/Home.aspx

  27. Investopedia Simulator Tutorial http://www.investopedia.com/simulator/Home.aspx

  28. Investopedia Simulator Tutorial http://www.investopedia.com/simulator/Home.aspx

  29. Investopedia Simulator Tutorial http://www.investopedia.com/simulator/Home.aspx

  30. Investopedia Simulator Tutorial http://www.investopedia.com/simulator/Home.aspx

  31. Investopedia Simulator Tutorial http://www.investopedia.com/simulator/Home.aspx

  32. Random Stock Pick & Analysis • Price/Earings ? • Price/Earings/Growth ? • Price/Book ? • Industry comparison ? • Analyst Opinion ? • Chart ?

  33. Test out app!!! • Play for 5 minutes • Different food once a month • Better prize for simulator • Financial stability

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