Hello CNBC readers! Thank you for checking out our blog. Since we last wrote, things have not come easy for the Johnson team (and our ranking reflects this). But alas, such is the nature of the beast when investing. We remain committed to our strategy and are confident that it’s just a matter of time until the pendulum swings back in our direction.» Read More
CNBC would like to extend our thanks to all the MBA students from Carnegie Mellon, Cornell, Georgetown, Ohio State, University of Chicago, University of Michigan, University of Notre Dame & University of Texas Austin, for participating in this years MBA Face-Off...
Meet The MBA Face-off Texas (McCombs) Team
Meet The MBA Face-off Chicago (Booth) Team
At Carnegie Mellon’s Tepper School of Business, we are taught the importance of interpreting data to make informed decisions.
Meet The MBA Face-off Michigan (Ross) Team
The congressional super committee charged with finding an agreement on deficit reduction has a little more than a week to go until its November 23rd deadline.
Many members of our team went to Chicago’s “Invest For Kids” conference this week (see http://investforkidschicago.org/). The presenting speakers were phenomenal (e.g. Cooperman, Milken, Perry, Zell, etc.) and provided some of their best investment ideas, and we are confident the conference will continue to expand to support its educational causes.
This past week, the markets had been extremely volatile because of the news coming out of Europe and Italy. We had very interesting debates in our Securities Markets & Investment class about the yield on Italian bonds:
Meet The MBA Face-off Tepper Team
Technicals, candlesticks, quants, fundamentals, vix, leg up, falling knife, dead cat bounce, Soros, Paulsen, Buffet, bulls, bears, hawks, doves, debts, shorts, unholy trinity, and round and round we go. None of it matters and all of it matters.
Suppose we start with the premise that markets are efficient. That every investor is able to look forward and quickly calculate their expected return and potential risk of their trade, take in all available information, and then place a trade to execute on their beliefs
Recently, our Cayuga Fund class had a discussion surrounding deep value investing. While this phrase is commonly used, it is rarely defined. Many stocks right now could be thought of as deep value but where is the line drawn?
Meet The Notre Dame MBA Face-off Team
One of the fundamental measures of the strength of consumer demand is housing. Consumer decisions are necessarily dependent on what is happening with their largest expenditure/investment. Today, existing home sales in September were down 3% month over month. On Wednesday, housing starts for September were up an annualized 15%, driven by strength in multifamily homes (up 51.3%), but not single-family homes (up only 1.7%).
Technical analysts refer to consolidation as a well defined pattern of trading within certain barriers. It is also considered a clear indicator of indecision. While some consider technical analysis to be a form of voodoo, it serves to be a very valuable tool when paired with understanding economic data.
“The stock market has predicted 7 of the last 5 recessions” is a common quip by economists who can’t seem to predict anything with reasonable accuracy (which is almost all of them). Those who do their research would see that those extra 2 occurrences were mainly driven by the expectation of a post-World War II recession and the fear of a 1962 downturn that never materialized. In both instances, the experts and the media were wrong. The truth is that the stock market predicts 100% of everything. Therefore, the job of the investor is to listen to the language of the stock market, which is different than that of “rational” human beings.
Meet The Cornell MBA Face-off Team
One of the unique experiences we have as business school students is the opportunity to hear from interesting and engaging speakers. A number of us on McCombs’ MBA Faceoff team just heard from Richard Yamarone, Bloomberg’s chief economist. The presentation had a decidedly negative outlook and Yamarone is unequivocally calling for another recession in the United States based on weak consumer demand and residential housing, government inaction and a continued lack of hiring or investment by the business sector.
With gold hitting a two-week low yesterday, reaching $1,607.06 in mid-day trading, maybe it's time to revisit a traditional argument on where it's headed.
What a week! The markets continue to be choppy and volatility is the name of the game. With no resolution yet from Europe, poor earnings from banks and very little positive news, it’s been a wild ride in the equity markets so far. This market is certainly not for the faint of heart or for those who get spooked easily. However, for those of us in this challenge, it’s a “no risk, all reward” situation right? So hey Mr Market, bring it on! We are not spooked.