Session 6

Session 6Session 6

Refining your InvestingRefining your Investing

Monitoring Your InvestmentsMonitoring Your Investments

• As in all life, the only As in all life, the only thing constant is changething constant is change

• Monitor InvestmentsMonitor Investments

• Read your statementsRead your statements

• Adjust as neededAdjust as needed

• Emotions vs. LogicEmotions vs. Logic

Evaluating Investment PerformanceEvaluating Investment Performance

• AbsoluteAbsolute

– Specific % or $ gainSpecific % or $ gain

• RelativeRelative

– Compared to market, segmentCompared to market, segment

– IndexesIndexes

Am I Winning?Am I Winning?

• ““Winning”Winning”– Keeping up with MarketKeeping up with Market– Example- if the S&P grew by 8% last year, Example- if the S&P grew by 8% last year,

and your portfolio grew by 8.5%-your doing and your portfolio grew by 8.5%-your doing well.well.

TheThe Regulators Regulators

• SEC (The Securities and SEC (The Securities and Exchange Commission)Exchange Commission)

• NASD (National Association NASD (National Association of Securities Dealers)of Securities Dealers)

• State RegulatorsState Regulators

IndexesIndexes• Dow Jones IndustrialsDow Jones Industrials

– contains 30 of the largest industrial companies contains 30 of the largest industrial companies (not always useful)(not always useful)

• S&P 500S&P 500– 500 largest publicly traded companies (most 500 largest publicly traded companies (most

widely used)widely used)

• Wilshire 5000Wilshire 5000– broader, includes almost every publicly traded broader, includes almost every publicly traded

companiescompanies

• Domini 400 Social IndexDomini 400 Social Index– Top 400 companies with good social and Top 400 companies with good social and

community practices.community practices.• Russell 2000Russell 2000

– smaller companiessmaller companies• NASDAQ 100NASDAQ 100

– 100 largest non-financial companies-100 largest non-financial companies-contains Microsoft, Dell, Starbucks.contains Microsoft, Dell, Starbucks.

Socially Responsible InvestingSocially Responsible Investing

• (SRI)-application of your (SRI)-application of your ethical, social, political and ethical, social, political and environmental beliefs in environmental beliefs in making investment choicesmaking investment choices

• Studies show-investing Studies show-investing “responsibly” does not have to “responsibly” does not have to lower your return.lower your return.

Types of socially responsible Types of socially responsible investinginvesting

• Screened PortfoliosScreened Portfolios

• Investing in good Investing in good companiescompanies

• Alternative InvestingAlternative Investing• Studies of SFI show that Studies of SFI show that

these companies actually these companies actually outperform bad corporate outperform bad corporate citizens in the long-rungcitizens in the long-rung

Information on SRIInformation on SRI

• First Nations Development Institute:First Nations Development Institute:– www. firstnations.orgwww. firstnations.org

• Social responsible investing:Social responsible investing:– www.coopamerica.org/socialinvesting/sif.cfm

• Social responsible mutual funds can be found atSocial responsible mutual funds can be found at– www.socialinvest.org/areas/sriguide/mfpc.cfm..

• Community InvestingCommunity Investing– www.communityinvest.org/www.communityinvest.org/

Questions??Questions??