Category: Stocks

Podcasts For Your Classroom: What's New In the World of Investing?

|
Nov 02, 2020
|
Podcasts, Investing, Stocks
Welcome to the first official Podcast Tuesday! After more than 400 teachers expressed interest in bringing podcasts into the classroom, we decided to build out a weekly activity to fulfill that desire. This week's activity (you will be asked to Make a Copy when clicked) focuses on the world of investing with 3-6 minute audio files explaining sustainable investing, the pros/cons of the Robinhood investing app and an analysis of who is benefiting from the recent rise in the stock market....

Question of the Day: This company, whose product is now being used by millions of students every day, has seen its stock price rise by more than 700% this year. Can you name it?

|
Oct 18, 2020
|
Question of the Day, Investing, Stocks
Hat tip to Amanda Volz for inspiring today's QoD.  Answer: Zoom Questions: Do you currently use Zoom? Had you heard of Zoom pre-pandemic?  How do you think Zoom's business will do post-pandemic? Will two of their larger sectors, education and business, return to more in-person interactions reducing their reliance on a product like Zoom?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom. Behind the numbers...

NGPF Podcast: Jack Gecawich on the dangers of apps that "gamify" investing

|
Aug 14, 2020
|
Podcasts, Investing, Stocks
Jack is a repeat guest on the podcast. He's currently a student at East Greenwich High School in Rhode Island. When we last spoke with Jack earlier this year he was advocating for financial education alongside Treasurer Magaziner. In this podcast, Jack discusses his work this summer leading a group of students through a series of investing lessons. Well, that's what I thought we were going to talk about. Instead our conversation took a detour as we talked about the speculative nature of today's...

Reading List for July 31-Aug 2

|
Jul 31, 2020
|
Economics, Investing, Stocks, Paying for College, Retirement
There was so much relevant news this week, this list runs a bit long, but it is sure to have something you will find interesting!     Economics The Federal Reserve met this week and left interest rates unchanged (near zero). Dow jumps 150 points. (Forbes) Far and away the biggest economic news this week was the historic annualized drop of 32.9% in the second quarter. (Note: add this example to your lesson on compounding.) Did one-third of the economy disappear in the second...

What's New With Investing - 2020

|
Jul 30, 2020
|
Investing, Stocks, Retirement, Current Events
This update is dominated by the impact Covid-19 has had on the investing this year.   Why is the stock market, after initial chaos at the beginning of the pandemic, not reflecting the downturn in the economy? What should investors consider in terms of diversifying, rebalancing, and retirement savings? And what about gold?   The NYSE president explained at the end of May that the “market” as represented by the S&P 500 or Dow Jones Industrial Index is a) forward looking...

Question of the Day: Do investors buy stocks in companies based on TV commercials?

|
Jun 03, 2020
|
Question of the Day, Behavioral Finance, Investing, Stocks
Answer: YES Questions: Why do you think that investors buy stocks in companies after they see a TV ad on those companies?  Are there ads or commercials that you have seen over the past week where you think "Hmmm...that could be a good investment?" Do you think this is a good idea? What other research might you want to do before making a decision to buy stock?  Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.  Behind the...

Chart of the Week: How do stock, bonds and cash returns vary?

|
May 05, 2020
|
Chart of the Week, Investing, Stocks
Hat tip to Beth Tallman for this idea:  Explanation: This chart graphs the range in annual returns for stocks, bonds and cash (think savings account) with the average indicated in blue.    Questions: One of the core tenets in investing relates to the relationship between risk and return. Complete this sentence: the higher the risk of an asset, the _______ the expected return. Which of the following assets (stocks, bonds or cash) has the highest risk? Which asset has the...

Question of the Day: How did investors change their investment strategies in March after the 12% market drop?

|
Apr 28, 2020
|
Investing, Question of the Day, Stocks, Behavioral Finance
Answer:  Questions: In March 2020, the stock market had its worst month since October 2008. Based on the data in the previous table, what actions did investors take in March? When investors sell stocks they convert one asset (stocks) into another asset (cash). What are the reasons you think that investors were selling stocks in March and holding more cash? Your friend says, “Of course everyone knows the stock market is going to drop because of the pandemic. I’m going to wait...

Question of the Day: What stock has been the best performer this calendar year: Amazon, Walmart or Costco?

|
Apr 15, 2020
|
Investing, Question of the Day, Stocks
Answer: Amazon From FinViz (as of the close on 4/15/20):  Note: Percentage is the change in the stock price since January 1st.  Questions: Why do you think that Amazon has performed better than the other two companies? A recent study found that 6.3% of groceries were purchased online in 2019. Do you think the current pandemic will permanently alter the way people buy their groceries? Do you/your family have a favorite among the three companies? If so, which one do you/your family...

Question of the Day: What percent of investors at Vanguard (a large investment firm) have NOT made any trades in the face of recent market declines?

|
Mar 31, 2020
|
Question of the Day, Investing, Stocks, Behavioral Finance
Answer: More than 90% Questions: Do you think it's hard to do nothing with your investments when the stock market has dropped over 20% in a month? Why or why not? Your friend says "I know the market is going down in the next few weeks so I'm going to sell now and get back in when the prices go down?" Do you think it's easy to time the market and know when to sell and then buy back in? What are strategies that you can use to calm your nerves when the market goes down like it has over the past...

Question of the Day: How many bear markets (stock market declines of 20% off the peak) have there been in the past 63 years?

|
Mar 11, 2020
|
Investing, Question of the Day, Stocks
Answer: 10+1 or about once every 6 years. It was 10 until yesterday when the S&P 500 index was more than 20% below its previous high.  From Invesco:  Note: The number in bold is the duration (in months) of the bull/bear market. The %age is the rise or decline in stocks over that period. Bull in green and bear in red.  Questions What time period had the best performing bull market? the worst bear market?  How do bull and bear markets compare when it comes to their...

Chart of the Week: How have historical events affected the Dow over the past 120 years?

|
Mar 03, 2020
|
Investing, Chart of the Week, Research, Stocks
With the stock market last week undergoing its worst week since 2008, it's instructive to take the long view, the very long view. Here's a chart of the Dow Jones over the past 120 with historical events superimposed on the chart.    Questions: What historical event required the longest recovery time for the Dow Jones Industrial Average?  What historical event caused the last big drop in the stock market (before last week's decline)?  Find 2-3 historical events on the chart...

Reading List for February 28-March 1

|
Feb 28, 2020
|
Investing, Stocks, Current Events, Paying for College, Financial Literacy, Retirement
Given the huge and rapid correction in the stock market this week, we start this week’s list with the “Investing” articles:   This is the fastest market “correction” in history, and we aren’t done yet. (Yahoo Finance) "Is The Stock Market Going to Crash?" The Irrelevant Investor takes a deep dive for those of you that like numbers and stats and graphs to address this question. WSJ-(subscription) columnist Jason Zweig reports on survey results...

Question of the Day: Can you name the 4 companies worth over $1 trillion in market value (as of 2/21/20)?

|
Feb 25, 2020
|
Question of the Day, Investing, Stocks
Answer: Market Capitalization (as of 2/21/20)  Apple - $1.37 trillion Microsoft - $1.36 trillion Amazon - $1.04 trillion Alphabet (Google's parent) - $1.02 trillion Market capitalization - valuation of a company calculated by multiplying the current stock price by the number of shares outstanding for that specific company.  Questions: How many of these company's products do you use?  Calculate the percentage of students in your class who use each of the company’s...

QoD: Electronic Arts vs. Activision: Which has been the better performing stock over the past five years?

|
Feb 10, 2020
|
Question of the Day, Investing, Stocks
Answer: Activision Questions: Reviewing the chart, how much would your $100 investment five years ago have grown if you had invested in... Electronic Arts? Activision? The overall stock market (S&P 500)?  Would you have been better off choosing between these 2 companies or just buying the overall stock market through an index fund?  Which games do you prefer?  Would that be enough information to drive you to invest in one company over the other? What else would you want...