Common CentsInvestment GroupWelcome!

Monday September 16th

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

estimize.com

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

Macro Update

9/9/2013 ~ 9/16/2013

Weiyi Xie

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

Brokerages

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

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

How Commissions Affect26 trades$6.95/trade26 x 2 x $6.95 = $361.40 $361.40/$5,000 = 7.23%

Requirements

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

Example Brokerage

Example Trading Platform

Example Trading Platform

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

Investopedia Simulator Tutorial

http://www.investopedia.com/simulator/Home.aspx

Investopedia Simulator Tutorial

http://www.investopedia.com/simulator/Home.aspx

Investopedia Simulator Tutorial

http://www.investopedia.com/simulator/Home.aspx

Investopedia Simulator Tutorial

http://www.investopedia.com/simulator/Home.aspx

Investopedia Simulator Tutorial

http://www.investopedia.com/simulator/Home.aspx

Random Stock Pick & AnalysisPrice/Earings ?Price/Earings/Growth ?Price/Book ?Industry comparison ?Analyst Opinion ?Chart ?

Test out app!!!Play for 5 minutes

Different food once a monthBetter prize for simulatorFinancial stability