Spring 2021 Short Term Competition Below are the assignments for the Spring 2021 Short Term Competition: Team 0 Vincent AgostinelliEric BartosDrew HooverDerek KagenBrentyn Muir Team 1 Amanda CostelloBrennan CumbyIan Garcia-PhillipsMartin GrzywaMichael Gutman Team 2 Donovan HumbergerBryce JohnsonJonah KozakRyan PetersBrock RobertsonQuinn Simonson Short Term Investment Parameters Market Cap Minimum Maximum Small Cap % Minimum Holding
Looking at Value and Equity Hedging Since Laker Asset Management’s establishment in 2018, our thematic investment strategy has been the club’s bread and butter. This is, attempting to forecast future economic trends and consumer behavior, and investing around ideas. Some of our themes have been generally safe, and others have been inherently more risky, but the club has managed to find relative success and keep up with our benchmark index throughout the past few years. COVID-19 and it’s name
Fall 2020 Short Term Competition Below is the assignments for the Fall 2020 Short Term Competition:Vincent AgostinelliDrew HooverMichael KoniarBrentyn MuirBrock RobertsonEric BartosAmanda CostelloMichael GutmanDerek KagenGarek SchultzShort Term Investment Parameters WhatAcceptable levelDescription / ExampleMarket cap minimum$300 millionTo limit the possibility of penny stock trading, having limited information, and to keep a certain level of trade volume.Maximum Small Market cap % of given f
THE FUTURE: PUBLIC, PUBLIC TRANSPORT Over the last few weeks during our meetings, Laker Asset Management has had some extensive conversations on the state of automobile manufacturing. Following CA Governor Newsom’s September 23rd announcement of a 2035 target for an end to gas car sales, we have been once again Thinking Green. The domestic research group has been exploring the emerging independent electric car market, as well as the progressive renewable initiatives among domestic gas guzzle
Home Pricing and Sales Staying Strong During Pandemic Home price growth began increasing in July, this is a sign that the slowdown in home prices caused by the pandemic may be reversing. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 4.8% in the year ending in July. Sales of existing homes have risen 10.5% on an annual basis in August. That included a 44% increase in the sales of homes costi
This Year's Election Will Likely Affect the Stock Market Presidential elections in the U.S. can drastically alter the nation’s direction and economic well-being. While it may not have a direct impact, stock market returns in the year following an election could be affected by its results. According to be US Bank, when the presidency changes hands, the stock market gains an average of 5% in the following year. When the president is re-elected, however, the stock market averages an increase of
Retail Bankruptcies and Store Closures In the first six months of 2020, 18 retailers filed for protection. Majority of these retailers were a part of the apparel and footwear, home furnishing, and grocery and department stores. From July to August another 11 retailers filed. This could be the worst year for retailers to file for bankruptcies since 2010 when there were 48 retailers who filed. Since the government mandated a stay at home order, many of these stores were out of operations f
Alibaba: Finding International Success where Amazon Falls Short INTRO: Alibaba, commonly referred to as “The Amazon of China”, has been a mainstay on the international side of the Laker Asset Management portfolio since the Spring of 2018. LAM bought just in time, as BABA revenue has nearly doubled just in the two years of ownership. Let us take a statistical glance at the e-commerce and cloud computing company’s success in China, and why the stock remains a great buy. Alibaba has effec
Current Numbers on Unemployment and What it means As the war against COVID-19 rages on, it is important to look at the numbers and see how this virus has effected the economy. Throughout this article, we will look at what key factors have been effected throughout this pandemic and what the numbers mean, as well as mentioning and briefly describing what some of those key macro terms actually represent.One of the most heavily watched data points throughout this pandemic has been unemployment.
Bond Yields are Explaining the Market The market has been pretty unpredictable recently but if we are to take a look at bond yields, it can help us investors know what might happen in the market. The treasury note has decreased from 1.9% to 0.7% year to date. This could be why the markets have done well recently too. Stock price estimates are formed from formulas containing yields, and with lower yields it can help pull down discount rates. This can make future earnings more valuable, althou
School Closings Could Cause Long-Term Damage to the U.S. Economy As the COVID-19 pandemic continues to affect the U.S., elementary and secondary schools across the nation have been forced to shut down and transition to remote learning to reduce the spread of the virus. These closures have an obvious effect on learning in the short-term, as many schools were unprepared to convert their curriculum to digital platforms. However, school closings could also have a massive effect on the long-term
What in the world is a Stock Split? Before the market opened on Monday 31st of August, both Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) enacted stock splits of 4-1 and 5-1 ratios respectively. But, what is a stock split? A stock split, also known as a stock divide, increases the number of shares offered by a company. Stock splits do this by decreasing the market price of individual shares by the inverse ratio of the total share increase. Essentially what this means to an investor is this: Le
Three-Day Rule Challenges Q3 Rally Now that we have come upon Labor Day and the month of September, we approach the last breaths of Q3. As Americans, we set our sights on sooner than later, finally escaping 2020. It looked as though we would enter the weekend with continued high hopes for the market, but trading on the third and fourth of the month was a major vibe-check. The S&P 500 tumbled 2.3% over the week, and the Dow Jones Industrial Average slid 1.8%. Despite starting with stock spli
Fall 2020 Involvement Fair Exciting things are happening with Laker Asset Management this upcoming year, and we can not wait to share the details with you all in the coming weeks. There have been many setbacks put in place this year due to University policies and COVID-19 mandates, but the LAM leadership team is doing everything possible to not let us fall behind. One of the biggest changes that will be faced is meeting remotely on a weekly basis. This took place for a number of weeks last Sprin
Global Oil War Comes to a Close: Last Thursday, April 9th, twenty-three countries met led by Russia and Saudi Arabia, in efforts to end the "oil war" that had been in full swing since early March. On that day, production cuts were initially rejected by Mexico, but come April 12th, the deal was finalized. OPEC+ nations are to reduce output by 9.7m barrels per day in the months of May and June, or about 10% of global output. The countries, while not required to as per the deal, are likely to h
Big Business Steps Up As Covid-19 continuesto rip through countries, it leaves behind a chaotic and beaten economy. Thepandemic has forced many businesses and even whole sectors to close in order tostop the spread of the virus. In times like this it is important to seek out positivityand resist being swallowed up by all the negative news. Many larger companiesare providing us with that beacon of hope. As the virus continues crippling the economy, it leaves many gaps. Larger companies are ste
America's Largest Relief Bill The coronavirus has left the world's markets volatile and staggering. Aggressive actions are being taken to prevent these losses from becoming extraordinary. President Trump signed a $2 trillion dollar stimulus package into law. This is the largest relief bill that the United States has ever signed. It includes additional unemployment insurance and also will support aid to many struggling Americans. It is predicted that millions of Amer
Follow-Up on Oil War & European Prevention Efforts UPDATE: European Stage of the Coronavirus Epidemic Italy has surpassed China in total deaths at nearly 5,500, making it the new epicenter of the virus. The entire country is completely shut down and off limits, and any movement within the country has even been restricted. Over the course of the last week we have seen lots of development in the variety of restrictions which European countries are putting in place to comba
Directors for the Spring Semester are officially announced After numerous interviews held late last week, the Board Members have come to the decision to accept the applications of four exceptional Junior Analysts. The following individuals are the ones that will be taking over the respective sectors: Domestic Markets - Eric Bartos International Markets - Derek Kagen
Short Term CompetitionSpring 2020 Teams Announcement In the table below, you can find all of the team members that are participating in this semester's short-term competition. Each team will start with $12,000 - one fifth of the allocated funds for the competition! Remember, you are competing against the Board Members, so there are high bragging rights awarded to the winning team!For reference to the policies that are put in place throughout this competition, find the official document here.
The First Short-Term Competition has been Completed! After a nail-biting couple of weeks, the first competition of the $60,000 short-term investing competition has come to an end. Each of the five participating groups put a lot of hard work into their investing decisions, and surely their hard work paid off! As a club, from November 21st until December 11th, the portfolio's $60,000 allocation increased a whopping 4.47%, while the S&P 500 increased only 1.12% over this three-week period.C
Short Term Competition Teams Team 1Amanda CostelloDevon DanielsRoss HartmanKij TegraTeam 2Brentyn MuirAbby WidgerMaria ChinniciAndrew VadenBroeckSean MillerTeam 3Michael KonialDerek KagenVincent AgostinelliEric BartosTeam 4Hayley SkidmoreRyan PetersNathaniel TennesenMia D'AmatoLuke MitroClick here to read the policy on the short term investment competition!
Inflation - You should be afraid Are you scared? I am, and I will explain why you should be too. But remember, I'm just a random student, and to be honest, I have no idea what the f*** I'm talking about here.Central banks around the world have been undershooting inflation estimates, and the consensus is that they have no idea why it's happening. The Economist recently published an article deeming that inflation has lost its meaning as an economic indicator, stating that inflation has defied
$100,000 to $200,000 & more This past week, Laker Asset Management's leadership team finalized negotiations with Mercyhurst University's endowment committee. The endowment committee has agreed to increase the club's assets under management by $100,000, bringing the total to $200,000. This increase in funds is a massive milestone for the club, and the increased equity will help make the club more engaging and interactive from semester to semester. The club extends
Theme: "Thinking Green" The goal of this article is to discuss Laker Asset Management's newest theme: "Thinking Green." Thinking green includes everything from sustainability to Renewable Energy. It's relatively simple; every company that makes the world a better place fits this theme. Here are a few examples of the industries that we will discuss at our meetings in the next few weeks:Renewable EnergySustainable PackagingWaste ManagementNew Technology / Innovations.The reasons behind us cho
Thinking Green: What route should LAM take? What is a better play? Whether you buy an ETF or a bundle of stocks, aren't you practically buying the same thing? Read along to see what the Macro team recommends when looking at the latest theme of Thinking Green. No matter what route LAM chooses to take, there is still a great deal of risk taken when entering the markets of Renewable or Clean Energy. Laker Asset Management's main concern with purchasing stocks as of October 2019 is running to
Intro to research Again, the international team researched and analyzed global companies to fit into the clubs renewable energy investment theme. The focus of the research is to find companies that provide into the supply chain of renewable energy production; companies that manufacture windmills or solar panels, own and produce energy, or supply electricity generated from these renewable methods. Companies researched also have a large percentage of the market share, reducing the risk of buyi
Overview In keeping with the clubs current investment theme of thinking green with sustainable companies, the international team researched and analyzed multiple international companies and equities that would fit into this theme. A social trend towards buying from sustainable companies is even more prevalent in other countries, specifically in Europe. Buys in international markets with a focus on sustainable companies will likely benefit the overall return of the club portfolio. Heinek
Financial Markets Reaction to Fed Rate Cuts The Federal Reserve’s chairman Jerome Powell announced the second rate cut of 2019, by 25 basis points (bps), at the end of the two-day Federal Open Market Committee (FOMC) meeting this Wednesday. Global economic growth and trade-war related uncertainties leading to slowdown in business investments were cited as key reasons for the latest cut. Hence, banking stocks are expected to record lower margins at the end of the current quarter However, the cen
Federal Reserve Cuts Interest Rates for the Second Time in 2019 Over a decade had passed since the Federal Reserve had cut interest rates until July of 2019, and then again last week. These cuts have been reduced to the range of 1.75%-2.00%, according to a recent article posted this week. This is a big deal for numerous reasons: 1. This may show signs of a recession, 2. The cuts represent a safety in a slowing economy, and 3. Investors will lose confidence in the U.S. Economy. Let's dive a l
World Banks Adopt New Climate Change Principles According to Reuters News, banks with more than $47 trillion in assets, or a third of the global industry, adopted new U.N.-backed “responsible banking” principles to fight climate change on Sunday that would shift their loan books away from fossil fuels". Among these banks are Citi Group and Deutsche Bank.This announcement was made by the United Nations Environment Progamme Finance Initiative, before the United Nations General Assembly this u
Summary of Apple Hardware Show The annual Apple hardware show happened this week and it did not disappoint. Not only did they release a the new iPhone 11 (which also included the iPhone 11 Pro/Pro-Max), Apple also announced they were moving into streaming services with Apple+. The service will be released November 11th and will only be $4.99 a month, undercutting competitors such as Netflix and Disney which both posted losses on the day. As time goes on we'll see how much of the stream
Invest in Gaming We play on our phones, tablets, and laptops, we create virtual lives, hang out with friends virtually, and play with people from all over the world. Gaming has become big business and is expected to grow to a $200 billion industry within the next 2-3 years. The question is if gaming companies can sustain growth, and provide an interesting opportunity for Laker Asset Management to invest in. One of the signs that companies within the secto
The Mortgage Industry is getting back up on its feet (finally) Fannie Mae and Freddie Mac, two of the United State's largest Government-Sponsored Enterprises (GSEC) are taking steps to bail themselves out from full control of the government. These two companies guarantee housing mortgages to customers from the private sector to the government. Both companies have their own backstory on how the government gained control of them, but it all comes together starting the 2008 housing financial crisis
Aramco Oil Processing Facility Attacked On Saturday, September 14th, 10 drones struck hit Hijra Khurais, one of Saudi Arabia’s largest oil fields producing about 1.5 million barrels a day, as well as Abqaiq, the world’s biggest crude stabilization facility, which processes seven million barrels of Saudi oil a day. On Saturday the attack Houthi Rebels, an islamic rebel force that has gained control of northern Yemen over the past two years, claimed to be responsible for the attack. However, b
The first wave of Junior Analysts have arrived! Please assist the club in welcoming the first group of Junior Analysts to the following groups: Domestic Team International Team Macro Team New Ideas Team Nate Tennessen Reed Bearden Brentyn Muir Derek Kagen Alec Acampora Eric Bartos Michael Koniar Andrew Vaden Broeck The new Junior Analysts will be starting their positions preceding tonight's meeting by starting off with an introduction with their Director, followed by
The theme of aging population and why it never gets old. A week doesn't go by without hearing about the problems which will be created by the world's rapidly aging population. Much of the focus is on how fewer people will mean lower future economic growth. When we look at the investment opportunities as a fund, we must look at many different and unique markets older adults not only rely on their primary care physician, but also on long-term care services and supports. Teams of physicia
The US is overvalued & The Eurozone is undervalued Last week explained how high volatility had skewed some companies valuations. In this weeks article, we dive deeper into this theme, and we more specifically look at undervalued European Stocks and overvalued American Stocks. One of the reasons why we have chosen to take a closer look at undervalued European markets is because these markets have underperformed American equities in the last few years. Granted, the European economy has
World Oil Prices close at week highs It was a good week for oil owners around the world. All oil rose nearly 5% except for Iran Heavy and Saharan Blend. There have been a few different economic reasons as to why oil has been climbing and finishing higher and higher every week. One of the most significant reasons for a recent spike in oil is the news of a sit down between China and the US to agree upon a trade deal finally. The US, now the leader in oil production, has a large impact regardin
Today's Economic Influencers and How the Economy is Reflected Although many variables may influence the economy, this article will only discuss a number of them that were mentioned in the news this past week. Specifically, the variables included in this article contain unemployment rates, consumer spending, and investor spending. Learn about the most recent updates in the world of economics and become involved in helping make conclusions for the club's benefit. AP News: Survey from Busine
Join our stock market game! Interested in competing against fellow club members? Want to gain actual experience with managing money? Join our stock market game by clicking the image below! The competition is live from September 10th through December 10th. Over the next three months, you are able to buy any security with a virtual $100,000. During the club meetings, we'll go over the standings and maybe ask some questions to what is going well or what could be improved on. In order
5G is moving faster than expected = 5G has been a hot topic for telecom stocks during the past year, and the rollout for nationwide consumer 5G gets closer and closer. During this past week, new updates of certain telecom companies and their progression of 5G networks have pointed out that 5G will be fully functional sooner than most people expected. In particular, Sprint has brought 5G to four more major cities in the US, including Los Angeles and New York City. Sprint's 5G network is c
Possible Aramco will likely be largest IPO ever Over the past week, the market has seen triggering points that forecast a possible recession. For that reason, it is ever more important to diversify and invest in international markets. I believe Saudi Aramco will be the next big international stock for our portfolio. Saudi Arabian Oil Company, more commonly known as Aramco, is a privately held petroleum and natural gas company based in Dhahran, Saudi Arabia. According to Bloomberg news, it is
High Volatility Leads To New Opportunities Since the beginning of 2018, we have seen equity markets be volatile, and within August, the Volatility S&P 500 index (VIX) has seen higher highs and higher lows. VIX is often referred to as the fear index or the fear gauge because higher volatility equals higher uncertainty in the markets. In a 2011 report, Crestmont Research found that higher volatility corresponds to a higher probability of a declin
Is 2% growth in GDP really considered growth? Growth in the U.S. economy is critical to keep the economy out of a recession. Investors and economists have feared a recession would happen in the near future. U.S. Gross Domestic Product (GDP) is a measure of the market value of all goods manufactured within the United State's borders. This useful statistic for investors and economists allows them to compare such numbers to understand how the economy is doing as a whole. Calculated and released
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Retailers Show Signs of Strong Consumer Spending U.S. retailers show strong earning reports with Target (TGT) leading the way and Lowes (LOW) close behind. Both companies were thought to be hit hard by the trade war but ended up posting higher than expected EPSs through steady consumer spending. Since consumer spending makes up about two-thirds of the U.S GDP, strength in this sector of the market is important to maintain healthy GDP growth and offset the weaker U.S manufacturing sector. Wi
Yield Inversion - Early Recession signal Yield curves, interest, bonds, and the ever-going fight between the FED and President Trump have all been major focal points in 2019. Even though it might be sexier discussing high yield equities, it is important to talk about what happened last week. On August 14th, the 10-year Treasury bond briefly dropped below the 2-year treasury bond. This phenomenon is known as a yield curve inversion (See picture on the right). In normal market conditions, investor
Protest in Hong Kong affecting Markets In the past month, U.S. news has been flooded with videos and images of mass protest in Hong Kong. These protests have been occurring since March 31st of 2019. The citizens of Hong Kong are protesting an extradition bill which was proposed by the government that would allow authorities in Hong Kong to detain and extradite individuals who are wanted in mainland China and Taiwan. Hong Kong citizens fear this bill would put them under mainland China Jurisdic
Hi, my name is Drew Hoover and I am the Director of Bonds Research for Laker Asset Management. Just like many of you, this is my first time dealing with bonds and learning how they work. I am excited to jump into the role as Director of Bonds and learn alongside any of those willing to research with me as a Junior Analyst. The team is always looking for more people to help out, so look for ways to apply at the bottom of this article. First, let's start with a basic definition of bonds. From our
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