Minyanville - The Social Network of Finance, Buzz and Banter, Community, Discussion Groups

Lecture Hall

Emotion is the Enemy

January 5, 2009

The price of a stock that you bought last year has declined 70% below your cost basis as the fundamentals of the company and industry have deteriorated. You 'know' that you're likely better off selling this position, but you continue to hold it hoping that the stock somehow rallies to your entry price so that you can break even. Emotion may be clouding your judgement. More...

All MVEd lessons

School Spirit!

Top UMV Schools

January 2, 2009

Minyanville's .edu program has attracted readers from over 400 academic institutions. Schools near the top in readership include:

Northern Kentucky Univ

Southern Methodist Univ

New York University

Harvard University

Penn

USC

Syracuse University

Michigan State Univ

North Carolina

Georgetown University

University of Michigan

University of Virginia

University of Chicago
City Univ of New York

University of Colorado

University of Florida

Bursar's Office

Free Premium Access

January 5, 2009

Improving financial literacy is central to Minyanville, and we feel that connecting with the university community is vital. To engage the college crowd, Minyanville offers free premium website access, including the Buzz & Banter thoughtstream, to college instructors seeking to use Minyanville in the classroom, and to students with faculty sponsors. Contact Matt Ford at ford@minyanville.com for details.

Student Union

The Exchange is Open!

January 4, 2009

Minyanville has launched The Exchange--the social network for finance. The Exchange makes it easier than ever to link yourself to the Minyanville community. Students are welcome. Best of all, it's FREE! Get connected now! Once registered, invite others to do the same.

Quick Quiz

January 4, 2009

Samantha initiates a bullish position (a bet that price will go up) in General Electric (GE). She offsets her exposure with a bearish position (a bet that price will go down) in another company from the same sector, United Technologies (UTX). Samantha appears to be:

a) hedging
b) confident
c) aggressive
d) new to investing

Find answer here.

Study Notes

Know the Flow

1/7/09 Low bond yields reflect deflationary times that may be here for a while.

1/6/09 Solving a debt problem requires saving rather than more debt.

1/5/09 A deflationary forecast for 2009.

1/2/09 H&B's animated review of 2008.

12/31/08 Wealth, wage, and job data suggest tough times ahead.

12/30/08 Disassociating from crowds as social mood darkens.

12/29/08 Stay focused on return of your capital in this environment.

12/26/08 Progress report on 10 themes for 2008.

Education I News & Views

Club Corner

Check Your Smarts

Quiz: Market Psychology

January 5, 2009

Successfully navigating financial markets requires solid grasp of market psychology. Take this short quiz to gauge your understanding. An 8 out of 10 or better means you're pretty sharp!

To boost your smarts, check out the MVEd lessons series.

Smart Students

Scott Reeves and Minyanville offer tips on how to help your student better handle money, search for scholarships and avoid the "stupidity tax."

A Good Budget Essential for College Success

How to Avoid College Credit Card Debt

College Financial Tips to Survive And Thrive

College Costs: Paying Your Part

The Scholarship Search: A Guide

Rating College Savings Plans

Buying College Housing A Good Choice?

529 Plan Helps You Save For College

How To Better Deal With Homesickness

Off to College? Don't Forget Insurance

Minyanville MarketPlace

Campus Connection

Welcome to the University of Minyanville. The UMV campus provides a financially oriented gathering space for the college crowd.

UMV helps you connect. UMV connects you to Minyanville Education so that you can learn about personal finance and financial markets. UMV also connects you to colleagues so that you can network with, and learn from, others.

You know how it works: To learn, you need to be on campus. So stay engaged at UMV, and watch your financial market awareness grow.

Professor's Desk

Before You Invest

Matt Ford
Northern Kentucky University

I know many college students who are involved in the stock market. Some students own mutual funds in their 401(k) plans at work. Others trade individual stocks in personal brokerage accounts.

Such market participation promotes learning by doing. Plus, investing at a young age increases the time period available for wealth accumulation.

However, it is possible for college students to enter markets prematurely. Let me offer a few reasons why this is so, along with ideas on how to better cope:

Debt. Many students buy stock while lugging excessive debt. The current credit crisis demonstrates the risks associated with buying financial assets while leveraged.

Idea: Pay off all student loans and credit card balances before allocating capital to stock markets.

Liquidity. Students often have little or no savings in the form of cash balances. Cash offers liquidity, flexibility, and a cushion against unforeseen circumstances.

Idea: Amass at least 6 months worth of living expenses in cash before taking on speculative risk.

Smarts. Experience can be a great way to learn. But hands on mistakes in financial markets can exact a high tuition through losses.

Idea: Learn as much about economics and finance as possible before putting skin in the game. Minyanville, of course, is a great place to do this.

Students who are debt free, liquid, and 'Street Smart' make strong early strides on the road to success in financial markets.

Matt Ford is an associate professor of management in the Haile/US Bank College of Business at Northern Kentucky University.

Attention college instructors: Have something you'd like to say? Contact Matt Ford at ford@minyanville.com with submissions.

Student Voices

Safeway Reinvents Itself

Jeff Sheeran
Northern Kentucky University

The grocer is repositioning

These are the Worst of Times

Mindy Turner
Northern Kentucky University

Credit crisis generates fear and anger

Selected from student blogs on The Exchange

MV Interns Wanted!

Minyanville is looking for part-time interns in the New York area.

Interested? Send us your resume and contact information, and you could be the next member of the Minyanville team!