021010 Econ Mutual Fund 50m

Good Day!

DRAW A LINE SEPARATING TODAY & YESTERDAY1) Write: Date: 02/10/10, Topic: Mutual Funds2) On the next line, write “Opener #18” and then:

1) Plot your mood, reflect in 1 sent.2) Write down: Dow % Change, NASDAQ % Change, and your current stock daily %3) Respond to the opener by writing at least 2 sentences about:Your opinions/thoughts OR/ANDQuestions sparked by the clip OR/ANDSummary of the clip OR/ANDOther things going on in the news.Announcements: NoneIntro Music: Untitled

Agenda1) Stock Market Part 22) Mutual Funds and ETFs

End Goal, you will be able to…1) What can I do other than stocks?

Reminder1) Print out Stock Portfolio by Thurs2) Test 1 Debrief + Diploma list?

Participation (10 points a week)Negative Mark: Minus 2 Points Each0 Check: 6 Points1 Check: 7 Points2 Checks: 8 Points3 Checks: 9 Points4 Checks: 10 Points 5 Checks: 11 Points (+1 EC)6 Checks: 12 Points (+2 EC)7 Checks: 13 Points (+3 EC)8 Checks: 14 Points (+4 EC)

Notes #17a, Title: “Mutual Funds” 1) Mutual Funds: A pool of money invested by a

professional in a group of stocks (picked through a specific strategy: lo/hi risk, etc).

a) Net Asset Value (NAV): Price based on the (stock prices) of the pooled investment divided by the number fund shares. Managers of the fund take a fee/commission.

Like stocks, you money when you sell the mutual fund or are paid dividends.

Work #18a, Title “Create a Mutual Fund”

1) Your team has been hired to manage a new mutual fund to invest in companies that serve the youth market. Come up with a mutual fund name: _______ Youth Market Mutual Fund

2) Come up with a list of promising companies that serve the youth market.

Be prepared to present.

Notes #18a, Title: “Stocks” 1) Index: List of stocks that help gauge the stock

performance of the stock market (thermometer) a) Dow (7,992): Index of 30 largest, most traded

stocks public companies.b) Nasdaq (1,547): Index of 4000 stocks traded on

NASDAQ, typically newer public companies, many tech.

c) S&P 500 (840): Index of 500 largest, most traded stocks public companies.

Notes #18a, Title: “Stocks” 2) Index Fund: A fund where the manager buys

the stocks on a preset list like the S&P 500 (cheaper since less research/skill involved)

3) Exchange Traded Fund (ETF): Fund where you buy a pre-set list of stocks. Very similar to an index fund, except its cheaper, pre-bundled, + automated, no human (little/no human guidance, to sell back stocks in the lists)

Many economist argue that it’s safer to buy a fund that spreads nearly the whole market like an index fund or ETF b/c it’s difficult to beat the market trend, this is called “efficient market theory.”

Warren Buffet’s advice to investors.

Est. Wealth of $52 Billion Dollars

Warren Buffett reiterated his view that for most small investors who don't have time to research individual companies, cheap index funds are the best way to invest in the stock market. "The best way in my view is to just buy a low-cost index fund and keep buying it regularly over time, because you'll be buying into a wonderful industry, which in effect is all of American industry. If you buy it over time, you won't buy at the bottom, but you won't buy it all at the top either," the billionaire investor said. In contrast to mutual funds run by portfolio managers actively picking stocks, "If you have 2% a year of your funds being eaten up by fees you're going to have a hard time matching an index fund in my view," Buffett said. "People ought to sit back and relax and keep accumulating over time."

Work #18b, Title “Getting Rich”Read the article than answer: 1) According to the article, make a list of rules for yourself on how can you get rich.2) Share with your partner, and have them sign here.

5 Reading/Film Qs Come From These Work Sections

Investing Numbers

Selling Simulation: “Friday (Block) Marketplace”1) Sellers and buyers negotiate prices.2) Take home all items you brought/bought at the end of the marketplace.3) You may keep your proceeds or donate it to the class, all money collected by the class will be donated to a class charity at the end of the year.4) Buyers beware, things sold “as is”, sellers persuade them of the utility of your itemsNo illegal, non-school appropriate, offensive, living, rotting, broken, or potentially messy items allowed.

Staple your marketplace form in your notebook AND fill in the past data.

Follow branding instructions for Th/Fri.

Work #, Title “Closer Shareout”

Pick the 1 most important thing you learned today to share with your partner.1) Write down a brief summary of what your partner said (include their name).2) Rate 1-10 (1: confused, 10: too easy) how well you well you mastered today’s lesson.3) Summarize Mr. Chiang’s feedback.

Check-in (10 points)

1) By Saturday night, fill out the check-in form on the class site.

2) If you don’t have internet, do it at the library or here after class.

Workbook Check (100 Points): Make Sure:1) Name + Period written on cover

AND side of notebook2) Opener #s are highlighted3) Plastic bag inside inside cover4) Schedule/syllabus inside cover5) Reference sheets inside cover

Staple with the staples grappling in.

Homework: 1) Study today’s notes + work sections

for a possible workbook quiz.2) Print 1st page of stock portfolio AND

follow Marketplace Sheet instructions for end of week Marketplace.

Remember to highlight openers.

Workbook Check: If your name is called, drop off your workbook with Mr. Chiang (if requested, points lost if your workbook is not turned in)