(Questions from Lecture and Article) - Discussion Board Activity

I need to read the following Lecture Note and the ?Wall Street Journal? articles that I uploaded, and writeanswers for theDiscussion Board Activity.

1.Wall Street Journal article

ThinkingOutsidetheStocks

As Gold Climbs, So Do the Deals

2.LectureNotes

On the "EXAMPLE 1", EXAMPLE2, and ?EXAMPLE 3? papers I uploaded, you can have an idea what is the format, size and how long the answers need to be for each part. This is someone's else work, so do not copy, just use it as an example.

PLEASE FOLLOW THE SAME FORMAT AND SIZE OF THE "EXAMPLE 1", EXAMPLE 2, and ? EXAMPLE 3? PAPERS THAT I UPLOADED. In these examples you can see how long each answer needs to be. BUT no copy the comments from it. NO PLAGIARISM!!!

It must follow the instructions on Discussion Board Activity.

Please don't accept it before confirming with me that English is your first language, and that you can do a good job at this. NO PLAGIARISM!!!

As Gold Climbs, So Do the Deals - WSJ http://www.wsj.com/articles/SB10001424052748704855104575469982... The EurekaWest vein outcrop is seen at Andean Resources' Cerro Negro gold exploration project. Discussion Board Activity Part A: You are required to identify and explain in detail three (3) of your Investment Goals [which may include one for 'Retirement Funds'] using the discussions in Lecture Notes that you want to achieve through your investments. Include in the discussion of each goal, your \"gut' or 'intuitive' estimate of the $ amounts involved, the flexibility in the $ amounts, the time frame associated with achieving each goal, the flexibility in the time frames etc. For these selected goals, using the 'Wall Street Journal (WSJ)', and Internet resources, look for 2 articles - one from WSJ and the other from Internet resources - related to each goal (a total of 6 articles) which would support your estimates or cause you to modify them into a more realistic assessment. Detail your revised estimates. You must post at least equivalent to a 2 and 1/2 to 3 page Word document (Times New Roman, 12 points, double spaced) in the DB itself and NOT as an attachment. Attach copies of the articles used to gather the required information (NOT just citations or links). The source and date of the related article must be clearly identified. Note: Please share only what is not confidential and what you feel comfortable with in a 'public' forum. This exercise could be done on a hypothetical - but believable - basis though I hope you will find this type of exercise useful on a personal basis. Part B: You are also required to read the following 2 articles and post your views and comments on any one of the 2 articles - which would be more relevant to the achievement of your goals - and another recent article found by you on the chosen subject (using the \"Wall Street Journal\" itself) which I will dub as the 'supporting article.' Article 1: \"Thinking Outside the Stocks: Offbeat Investments That Are Paying Off\" WSJ dated 09/4-5/10 pages B7-10 Article 2: \"As Gold Climbs, So Do the Deals\" WSJ dated 09/4-5/10 pages B1 and B6 You must post at least 8 grammatically correct, complete, thoughtful sentences. Your discussion should be in the light of relevancy to the achievement of your goals (NOT just citations or links). The source and date of the related article must be clearly identified. 1 Part A. My three long term investment retirement goals would include retirement with $2 million dollars+ in my retirement fund by the age of the age of 65 with my house fully paid for. The investment funds I am going to utilize are investments into my 401K and Roth IRA fund at work, investment into a municipal bond fund and stocks and owning a rental property. My first investment into my 401K/IRA fund will be over a period of 30 years from now. It would involve $300,000 divided over a 30 year period which means I need to contribute at least $10,000 a year to the fund so that they can match that dollar for dollar. That would add another $10,000 a year to my fund for a total value $300,000 contributed from my employer. The total I would be left with would be $600,000 purely invested without including any compounding or growth during that time period which would be a plus. Because of the possibility of compounding I maybe able make my goal in a flexible range of $250.000-$300,000 invested. According to my WSJ article a person who has a marginal tax rate of 35% this year but expects to have a 25% marginal tax rate in retirement and willing to forgo $6,500 of spending this year can either contribute $6,500 of after-tax funds to the Roth 401(k) or $10,000 of pretax funds in the 401(k). Assume the underlying assets earn 100% pretax return before withdrawal. The Roth would provide $13,000 of after-tax funds, while the 401(k) would provide $15,000 after taxes, ($20,000 x (1 - 0.25)). So if you expects to have a lower marginal tax rate in retirement, she should save in the 401(k). http://blogs.wsj.com/experts/2016/07/07/how-to-choose-between-a-401k-and-a-roth/ According to my Internet article there is no better investment in the world than a 401(k) You're being guaranteed a 50 percent return on whatever you decide to invest, up to 6 percent of salary, with each and every paycheck. You will never get a better deal anywhere -- ever. And it's true: Putting away as much of your salary as you can each pay period and maxing out your 401(k) plan is the first critical step toward saving $1 million or more for retirement, said Leon LaBrecque, CEO of LJPR, a fee-only financial advisor and wealth management firm. "How to Retire with at Least $1,000,000." University WireAug 27 2016. ProQuest.Web. 5 Sep. 2016 . My second retirement goal would be to invest into municipal bonds and stocks. I would contribute another $10,000 a year over the next 30 years to both these funds equally. I expect them to grow at a steady pace and receive a large return back based on my the growth of my stock value over time. The Municipal bonds will provide me a fixed income return over the decades and I will load even more of my retirement savings into the fund at the beginning of my retirement so that I am not so loaded into stocks. This rebalancing will bring a lot of stability to my fixed income at that time and less worry about if all my savings would crash or not. I expect to invest a total of $150,000 x 2 into both securities equally and hope to double its growth or more by the time I retire. There is no flexibility in these numbers. The stock market just like the bond market is uncertain and the more I manage and readjust over time the better. I also expect to accumulate at least $600,000 at minimum over time utilizing the tax savings of the municipal bond funds and the no capital gains penalty for holding the stock long term. According to my WSJ article It's common knowledge among many investors that interest from municipal-bond funds are generally free of income taxes. What is not such common knowledge is that, if used right, muni-bond funds may have a negative tax rate. That is to say, in addition to tax-free income, investors may be able to take a tax loss without actually incurring an economic loss. Because muni investors are typically in a high tax bracket, this strategy may have broad appeal. http://www.wsj.com/articles/an-under-the-radar-tax-benefit-in-muni-bond-funds-1471618442 According to Internet article a large bond fund can give a very healthy dividend yield. For example, Nuveen Insured California Tax-Free Advantage Municipal Fund today announced a monthly dividend of 6.70c per share. The Fund seeks current income exempt from regular Federal income tax. The secondary objective is the enhancement of portfolio value relative to the municipal bond market. "Nuveen Insured California Tax-Free Advantage Municipal Fund Announces Dividend." News Bites US - NYSESep 06 2016. ProQuest. Web. 5 Sep. 2016. My third and final investment goal is to purchase a rental property besides my own personal home that will provide positive cash flow to invest into my other securities and just to hold in savings to balance my financial portfolio. I plan on investing into a property that will give me a flexible $1,500- $2,000 a month in rental income. This income will be accumulated at $18,000 $24,000 a year over a 20 year period for a total of $360,000-$480,000 before taxes. I expect to earn at least $350,000 from that investment in retirement savings and then will sell the property for $200,000 cash. According to my WSJ article for example in New York Rental buildings have come to be viewed as stable investments because of New York City's low apartment vacancy rate and population growth. Though the pace of price increases for rental residential buildings has begun to slow in the past year, prices per square foot have risen in most of the boroughs over the past several years. In the Bronx, the average price rose 51% from $106 a square foot in the second quarter of 2013 to $160 a square foot in the same period this year, according to Cushman & Wakefield. In Brooklyn, prices rose 77% from $209 to $369. http://www.wsj.com/articles/real-estate-investors-leave-comfort-zones-1472429211 According to my Internet article there are financial firms like B2R Finance who is the largest lender for rental property investors. The company provides single property and portfolio loans to rental investors across the country, helping borrowers overcome traditional financing hurdles and build long-term wealth through real estate investment. They like many companies out there can be utilized for help in financing your rental investment goals. "B2R Finance; B2R Finance Hires Mortgage Industry Veteran Joe Hullinger." Insurance Weekly News (2016): 30. ProQuest. Web. 5 Sep. 2016. All 6 articles support my analysis and support the fact that if the stock market stays steady, the bond markets are not affected tremendously by the change in interest rates and there is not another housing crash, I will realistically be able to achieve all my investment goals I have set out for myself. $600k (401(k)/IRA) + $600K (Stocks & munis) + $550k (Rental Income/Sale) = $1.75 million. This is a slight adjustment down from my original $2 million dollar goal. Part B. I think the WSJ Article 1: \"Thinking Outside the Stocks: Offbeat Investments That Are Paying Off\" pertains more to me in my investment strategy. I as you can see above am not only going to trust in my employer and the stock market or bond market to get real returns in savings to contribute to my retirement. I believe, as the article advises, that your retirement investment vehicles has to be diversified. You have to think outside of the box and start placing your money in places that shield you from too much exposure to the volatile stock market. Places like the storage facilities, cell towers or parking lots are just a few of the possibilities that the article points out. These investments are making high double digit returns an even small investor can compete. People need more exposure to other forms of investments to get the best ROI for their money. According to my supporting WSJ article, REITs are by far the best-performing asset class in the market over the past 15 years. And most actively managed funds have largely ignored these stocks. REIT or Real Estate Investment Trusts has been added as a new sector in the stock market. REITS, which will become their own category will join technology, health care, utilities and the like. REITs, which own commercial real estate and generate healthy dividends from the rents, will be split off from financial stocks, where they have held an awkward place alongside banks and insurers since these sectors were created in 1999. (1) The article states that the ROI for this alternative investment fund into real estate has amassed 15% yearly dividend payments. A huge benefit over regular stocks and bonds. 1. http://www.wsj.com/articles/reit-surprise-how-real-estate-crushed-the-stock-pickers1465399043 2. http://www.wsj.com/articles/SB10001424052748703882304575465600161453406 7 Support Articles An Under-the-Radar Tax Benefit in Muni-Bond Funds - WSJ.pdf B2R Finance; B2R Finance.pdf How to Choose Between a 401_k_ and a Roth - The Experts - WSJ.pdf How to Retire With at Least $1,000,000.pdf Nuveen Insured California Tax-Free Advantage Municipal Fund.pdf Real-Estate Investors Leave Comfort Zones - WSJ.pdf REIT Surprise_ How Real Estate Crushed the Stock Pickers - WSJ.pdf Part A - Investment Goals As Alan Lakein once stated, \"failing to plan is planning to fail.\" When it comes to investments, this statement rings true, although 'failure' should be adapted to a somewhat less abrupt conclusion, such as 'lacking the required amount of capital at the end of the investment period.' Investments have a variety of horizons depending on the nature of the investment goal. As Reilly & Brown (2012) state, investment goals can be near-term high-priority which encompass an emphasis on shorter-term financial requirements, long-term high-priority goals such as being able to retire at a specific age, or lower-priority goals which are lofty and could provide a superior, but unnecessary standard of living. My fiance and I just got engaged a month ago and we are in the \"Accumulation phase,\" as per Exhibit 2.1 in our course textbook. As such, our investment goals are tailored more towards short-term requirements than longer-term objectives. This is not to say that at our age long-term goals are unimportant, rather we have an immediate need for certain items that govern our investment allocation. As responsible investors, future parents, and future homeowners, we understand that the investment plans that we put in place today will hopefully provide us with the financial freedom when we require it. Therefore, we practice and believe in a balanced investment approach that takes into account shorter-term and longer-term requirements. Goal #1: Taking possession of our first home within the next two years We currently rent a condominium in Toronto, Ontario, as this location is most convenient for my fiance who teaches at a private elementary school located a mere ten-minute walk away. Our current housing situation is more than adequate but far from what we truly desire. Our home- owning ambitions have largely been governed by the prevailing real estate market in the Greater Toronto Area (GTA). According to Advisor.ca Staff (2016), the average price of a new low-rise home, which takes into account the costs of detached, semi-detached, and townhomes, was $906,508 in July 2016[1]. That price represents a 12% year-over-year increase. A detached house, which is what my fiance and I are looking to purchase, averaged $1,095,910 in July 2016. Prices in the GTA have climbed over 109% within the last decade due to limited supply, which stems from provincial intensification policies and an inadequate supply of serviced land[2]. Demand continues to drastically outpace supply, despite efforts by the central bank to cool the market. In 2012, Finance Minister Jim Flaherty imposed numerous new financial requirements, one of which stipulated that government-backed mortgage insurance was required for home purchases that had a down payment less than 20% of the purchase price. This effectively forced insured-mortgage holders to pay off their loans in 25 years instead of 30, thus increasing their monthly mortgage payment. These regulations still remain today[3]. My fiance and I have identified a new construction subdivision located in the outskirts of the GTA. The opportunity to purchase should arise within the next six months, and possession should occur a year after the purchase date. We would be purchasing a detached home at an approximate price of $775,000, inclusive of closing costs and taxes. The builder requires tiered payments totaling $65,000 within the first 120 days of signing the purchase agreement and then our mortgage would be for the remaining amount. Thus, it's safe to assume that the purchase price for mortgage purposes would be approximately $715,000. We have agreed that we will only purchase a home with a 20% down payment, which given the current regulations, equates to an investment goal amount of $143,000. The only flexibility associated with that number is upward movement in the event that housing prices continue to appreciate. I am forecasting $155,000 as a more realistic investment goal. If the opportunity to purchase and construction of the home remain on schedule, this money is due within the next 18-24 months. Given our construction climate, I estimate 24 months to be a realistic deadline. Once the home is constructed, payments are due for the down payment and mortgage and there is no flexibility on this deadline. With a combination of savings and investments from today onwards, this is achievable. Savings have already begun towards this initiative. We also have housing costs already accounted for through prior savings. Goal #2: Establish education funds (75% of total cost) for each child Our second investment goal, which is more long-term in nature, is to establish education reserves for each of our future children. At this point, the amount of children is unknown, but if our wishes are granted, we should end up with two children very close in age. Luciw (2013) points to a study conducted in 2012 by the Bank of Montreal which revealed that 83% of parents expect to pay for their child's university or college costs and 44% expect their child to contribute[4]. We find it necessary that our future children contribute 25% of the total costs, in order to appreciate and value the experience. Luciw (2013) also explains that the average Canadian student leaves school with $27,000 in student debt. The student debt situation is quite similar in the United States, as in 2016, the average student debt in the state of New Jersey was over $30,000, while the average student debt per person nationally was more than $28,000[5]. As parents, we feel obligated to invest and prevent these debt scenarios if at all possible, as a significant debt load hinders the success of our children upon exiting a post-secondary institution. Luciw (2013) further explains that the average university degree cost $60,000 in 2013, and this amount could balloon to $140,000 with children being born in that year. I disagree with her assumption regarding the cost appreciation of a degree, but to be fair, I will use a total degree cost of $80,000 per child. This amount represents an estimated degree cost of $100,000 per child, discounted by academic or athletic bursaries. If we invest a minimum of $2,500 annually for 17 years into a Registered Education Savings Plan (RESP) for each child, we could receive $500 from the federal government through the Canada Education Savings Grant. Assuming that we meet this requirement, by the time both children are ready to attend university or college, they will have received a combined $17,000 from the federal government. Given that we will only cover a maximum of 75% of the total degree cost per child and the contributions that we plan to receive from the federal government, our investment goal becomes $107,250 for both children combined. There is a very high degree of flexibility associated with the investment goal amount noted above. First, one or more of our children may choose to attend a trade school and forego a university or college education, which would reduce the amount that we would need to have saved. Second, one or more of our children may be gifted athletically or academically and earn a substantial, or full, scholarship. This would also reduce the amount of money required. Third, the cost of a university or college degree may swell to the estimated level of $140,000, which would make our investment amount quite short of the 75% goal. Even if our investment falls short in this third scenario, $107,250 is still a generous combined contribution to our children, to say the least! The time frame at which we must amass the $107,250 is quite fixed, by traditional standards, at 17 years. The money needs to be available when each child turns 18 and begins post-secondary studies. Alternatively, one or more of our children may delay attending a post-secondary institution for a year due to a variety of potential reasons. This scenario would give us slightly more time to accumulate the necessary funds, however for planning purposes, its best to assume that each child will be a typical freshman age-wise. Goal #3: Retire comfortably at age 63 Our final goal is quite long-term in nature and reflects our desire to retire at age 63. While this may appear to be a lofty goal at the outset, the power of compounding in conjunction with our investment horizon makes this goal realistic and achievable. In Canada, The Canada Pension Plan (CPP) and Old Age Security (OAS) provide monthly disbursements to retired individuals. The CPP is funded via annual contributions from paychecks equal to 9.9% of pensionable income. The pensionable income amount is capped annually at $51,100 and the contributions are equally split between the employer and employee[6]. OAS is a monthly payment disbursed by the Canadian government to eligible Canadians aged 65 or older that apply and meet certain requirements. OAS payments are not dependent upon your employment history nor do you need to be retired to receive the payments. Both CPP and OAS define the age of 65 to be the point at which payments can commence, and these payments are adjusted quarterly based on the Consumer Price Index. CPP monthly payments averaged $528.49 in 2012, while OAS payments averaged slightly lower at $514.56. To be conservative, we will assume $833 per month for both my fiance and I individually throughout our retirement years from CPP and OAS, which equates to approximately $20,000 per year. As Aston (2013) indicates, given our goal to retire at age 63 with an 'upper middle class' retirement income, we would need $1,140,000 available upon the day of retirement[7]. This, however, assumes $30,000 in annual benefits (CPP and OAS), which means that the amount that we would need to retire at age 63 is closer to the amount required to retire at age 60, being $1,380,000. This amount is highly flexible, as we may surpass or fall short of this investment amount sooner than expected if favorable or unfavorable financial conditions present themselves. Thankfully, from a timeline standpoint, we have over 30 years to achieve this sum of money. There is a degree of flexibility associated with this timeline as retirement may occur +/- 2 years from the age of 65. We have already begun to amass this amount of money through private investments that reflect the asset allocation advice provided by Ruffenach (2016). Ruffenach (2016) explains how many advisers today are using 110, or even 120, as the number by which you should subtract your age from in order to determine the percentage of assets that should be held in stocks[8]. For most investors, this quick calculation may suggest a risky, volatile portfolio that stretches beyond their comfort zone. Given our investment horizon of over 30 years, we could comfortably hold a medium-high risk retirement portfolio using 105 as the 'magic number.' Advisor.ca Staff, (2016, Aug 22). Average price for GTA low-rise home exceeds $900,000. Retrieved from http://www.advisor.caews/economic/average-price-for-gta-low-rise-homeexceeds-900000-210688 [1] [2] Canada, N. (2015, Aug 20). Record-setting price growth for new homes in the GTA. Retrieved from EBSCOhost, Canada Newswire. [3] Wessel, D., & Frangos, A., (2013, July 9). Central bankers hone tools to pop bubbles. Retrieved from ProQuest (Wall Street Journal). Luciw, R., (2013, March 27). Five ways to save for your child's education - other than RESPs. Retrieved from http://www.theglobeandmail.com/globe-investor/personalfinance/household-finances/five-ways-to-save-for-your-childs-education-other-thanresps/article10375194/ [4] Anonymous., (2016, Aug 18). City News: Greater New York Watch. Retrieved from Retrieved from ProQuest (Wall Street Journal). [5] News, (2012, Feb 1). Canada Pension Plan vs. Old Age Security - the differences explained. Retrieved from http://www.cbc.caews/business/taxes/canada-pension-plan-vs-oldage-security-the-differences-explained-1.1239963 [6] CBC Aston, D., (2013, Aug 30). How much money will you need to retire? Retrieved from http://www.moneysense.ca/save/retirement/how-much-money-will-you-need-to-retire/ [7] [8] Ruffenach, G., (2016, Sept 6). The Best Asset Mix Near Retirement; A retirement expert addresses questions often asked about retirement finances and other issues. Retrieved from ProQuest (Wall Street Journal). Average price for GTA home - Advisor.pdf Central bankers hone tools to pop bubbles - WSJ.pdf City news - Greater New York Watch - WSJ.pdf CPP vs OAS - the differences explained - CBC News.pdf Five ways to save for your childs education - other than RESPs - Globe and Mail.pdf How much money will you need to retire - Money Sense.pdf Record-setting price growth for new homes in the GTA - EBSCOhost.pdf The best asset mix for retirement - WSJ.pdf Part B - Offbeat investments Two of the investment goals that I discussed in 'Part A' are quite long-term in nature. Establishing education funds for each of our two future children has a timeline of approximately 19 years, while our goal of retiring at age 63 with an annual income of approximately $70,000 has a timeline of well over 30 years. As Reilly and Brown (2012) note, a \"close (but not perfect) relationship exists between an investor's time horizon, liquidity needs, and ability to handle risk.\"[1] Given the investment horizons of the two investment goals mentioned above, my fiance and I have low liquidity requirements and can tolerate a significant amount of risk. McQueen (2010) points to several alternative investment opportunities for high yield investors, such as parking lots, public storage facilities, and abandoned railroad beds[2]. All of these alternative investments have previously been shunned by investors due to their highly-illiquid characteristics. In many instances, these alternative investments are yielding 8-10% annually while investors struggle to earn a comparable return elsewhere through more conventional means. I personally own two student rental properties in a local university town and I was easily able to relate to the benefits noted by McQueen (2010). Due to the capital requirements associated with student investment properties, there is a very low probability that an investors' income stream from rent could be threatened. High yield alternative investments that are highly illiquid, such as student rental properties, should be incorporated into our portfolios for each investment goal. Our risk appetite and investment horizon are somewhat larger for our retirement investment goal, and we could include real-estate investment trusts (REITs) into our portfolio, providing us with further exposure to alternative investments. Lastly, I was quite surprised to read that self-storage facilities are one of the fastest-growing sectors of commercial real estate with an annual yield of 9%. I never would have considered this as a viable investment opportunity. Due to the high financial barriers to entry, an industry-specific REIT should be used to gain exposure to this segment. In support of McQueen's (2010) description of alternative investments, Vojdani (2016) discusses asset allocation when higher-risk, illiquid, high yield alternative investments are being considered[3]. Vojdani (2016) notes that in our yield-starved market, alternative investments should be considered in conjunction with the client's earnings and risk capacity, age, and long- term goals. Further, he provides an example of a client that began investing in illiquid REITs in his 30's and amassed millions of dollars over the course of 20 years. This example closelyrelates to our investor characteristics and investment horizon for the two, previously-mentioned investment goals. The shortest of our long-term goals are the education savings funds, which encompass an 18-19 year investment horizon. As 'young' investors, we can absorb larger amounts of risk as we don't live solely off of the proceeds of our portfolio. Vojdani (2016) cautions investors to abide by the general rule that high-risk investments should never make up more than 15% of a portfolio. Given our age, risk appetite, and earnings capacity, we could comfortably include alternative investments at a 15-20% portfolio weight for both investment goals. As we get closer to the end of each respective investment period, we can adjust the alternative investment weights downwards to reduce volatility and increase liquidity. Supporting article - WSJ - When chasing yield, advisers should remember risk tolerance is relative.pdf F.K., & Brown, K.C. (2012). Investment Analysis & Portfolio Management - 10th Edition. Mason, Ohio: South-Western Cengage Learning. [1] Reilly, [2] McQueen, M.P., (2010, Sept 4). Thinking outside the stocks. Retrieved from http://www.wsj.com/articles/SB10001424052748703882304575465600161453406 Vojdani, M., (2016, Sept 6). When chasing yield, advisers should remember risk tolerance is relative. Retrieved from http://www.wsj.com/articles/when-chasing-yield-advisers-shouldremember-risk-tolerance-is-relative-1473178393 [3] Part B - Offbeat investments: As Gold Climbs, So Do the Deals Upon reading the article \"As Gold Climbs, So Do the Deals\"[1] some of my first thoughts are surrounding some the hype and claims made for certain advertisements such as Rosland Capital[2] watching William Devane indicate no retirement plan should be without an Investment in Gold. Given my retirement time horizon (@25-30 years) my personal retirement Goal is to maximize my contributions with Funds offered in my employer matching 401K plan, as well as maximize my yearly IRA Investments/contributions (Currently leverage several Vanguard Index Funds), I would also like to reach mandatory retirement age (Health permitting) of 72 (Possibly could change in time...but that's my plan) in order to hopefully maximize my Social Security benefit as well (That is....if it's still around when I retire). Concerning Gold Investments, I do not personally hold any investments in Gold within either my Retirement or Non-Retirement Accounts. Although I don't argue the point of price appreciation of precious metals and the correlation in certain volatile market trends[3] I have been somewhat reluctant to make the leap and invest myself. I would like to note that at the time this article was written (9/3/2010 - WSJ As Gold Climbs) we had just recently encountered the market crash and Investors were pursuing any/all potential options of \"Safe\" or alternative Investments to place their money. However, the demand for \"Gold\" in both it's physical form as well as investment funds was sparking significant demand which also bolstered the price swing in 2009-2010 timeframe. From a Retirement plan perspective, specifically the purchasing of \"physical\" Gold as an Investment for home ownership, I have both heard and read recent articles in regards to whether legality issues exist in whether IRS rules allow the use of owning physical Gold as an Investment in a Retirement plan.[4] \"If the U.S. government wanted to let people keep direct physical control over their retirement savings, it could have easily done so. It did not it imposed the trustee requirement. This was not accidental; the government wants an independent trustee holding the assets to make sure the funds or coins are actually held and that any distributions are reported to the government\". .I don't believe this topic has received adequate attention in the news or Investment Analysts for the common investor to be knowledgeable when they make their decisions to purchase physical Gold or not. Significant tax consequences could be encountered without prospective Investors being aware of the Risk. As far as Investing in Gold mining firms I view such Investments as highly risky and speculative and personally would avoid for part of my own investment choices. As referenced within the article I viewed the historical chart for Andean Gold Corp (Tkr - AGCZ)[5] which at the time of the article (2010) was a stock that was somewhat touted within the gold sector. However, as can be viewed via history and current market price (9/7 - $0.00), this stock is now a near worthless penny stock. My personal Investment Goals are to look for established and stable firms that have long-term growth potential with moderate risk. In my view I still have my doubts of leveraging Gold as an adequate Investment to reach Goal. [1] Carolyn Cui, Liam Pleven and Ray Brindal: WSJ - 9/3/10 - \"As Gold Climbs, So Do the Deals\" http://www.wsj.com/articles/SB10001424052748704855104575469982112990238 [2] Rosland Capital - \"Why Buy Silver or Gold\" William Devane https://www.roslandcapital.com/ [3] http://www.nasdaq.com/markets/gold.aspx [4] By Seth E. Pierce, Mitchell Silberberg & Knupp LLP - Law360, (May 29, 2015) http://www.law360.com/articles/661562/are-home-storage-precious-metal-iras-legit [5] Andean Gold Corporation:Ticker AGCZ http://www.reuters.com/finance/stocks/chart?symbol=AGCZ.PK Lecture Notes [Week 2] Introduction Hello and welcome to Week 2. Last week, we had attempted to understand about 'Investments' as an area of study in the field of Finance. We argued that 'Investments' is the art and science of managing money from the individual's point of view. We discussed about the steps involved in to make investing more meaningful and fruitful. The first step in the process was the identification of our individual goals - in the short term, intermediate term and long term. In other words, what do we want to achieve over our personal life-cycle. There are certainly several goals that we may want to achieve which are not necessarily translatable into $ terms - we want to be happy, we want to have lots of friends, we want to win more gold medals at the Olympics than anyone has ever done before, be the next American Idol etc. etc.. We may even want to be able to kick footballs into the stratosphere, run faster than a speeding train - move over, Superman [with due apologies to \"Superman: The Movie\"] or be able to leap over tall buildings! Oops!! Got carried away there!!! Even though we may be 'investing' time and effort, these goals may not necessarily be directly or indirectly be translatable into $s. However, several goals may be translatable into $s. The purpose of creating a retirement fund is to enable us to live comfortably - even maybe at the same level of living (or better) that we enjoy while working - after we retire. How much do we need to do this? This can be worked into $ terms. We may want to visit the 'seven wonders of the world.' How much do we need to do this? This can be worked into $ terms. Pop Quiz: Who can name the 'seven wonders of the world?' How are we going to get the money to help us achieve those goals that we have translated into $ terms? We may have some money to start off with - after all those 'Graduation,' 'Birthday' and 'Happy Holidays' gifts do add up (Cash only, please!)!! We may also have some money from odd jobs - delivering newspapers, lawn mowing, stuffing envelopes etc. etc. Of course, the money starts 'rolling in' when the \"Big Job\" comes along. Will this be enough? Will we be able to meet the monetary needs for all our goals? Probably or possibly not! Especially, if we have passed our \"starting-up years\" we did not 'fight the urge to splurge' or during the \"nesting years\" did not 'save' i.e. we did not act our \"Investment Age\" as per the CFPBS. We are going to have to find out some ways for us to make our money grow. So, this week our objective will be to identify Investment Opportunities which may help to make our money grow. Though the term 'investing' is often used in a broader sense, we will work with a narrower interpretation of the term. We will concentrate more on the investment opportunities in what are known as Real Assets and Financial assets. We will 1 also compare some of the characteristics associated with these various investment opportunities to see if there are differences, and, if there are relative advantages and disadvantages. Identification of Investment Opportunities As mentioned earlier, the term 'investing' is often used in a broader sense. For example, people talk about investing in themselves, or their children, through education. Here too, this action can be translated into monetary terms and with an anticipation of 'making more money.' We have an outflow of money to pay for tuition, fees and so on (of course, there is 'investment' of time and effort as well) with the anticipation of making more money, that is increased money inflows, through a promotion or a new better paying job. Another example could be 'investing' in a baseball team or a prize-winning racing horse. What we have here is a cash outflow to buy a share in the ownership of the team or the horse with an anticipation of making money from the actions of the team or the horse. Sometimes, we make 'investments' without really thinking of them as investments as such. Most commonly, the 'American Dream' is to own one's own home though this may have been shaken in the current market conditions. The purchase of one's own home is usually looked upon as a place to live and raise the kids. The ownership of a home is often looked at with pride, a source of prestige or stability (credit card companies usually look at 'owning a home' more favorably than 'renting'), and sometimes as a fallback in unexpected times of need (through the equity in the home). Many do not think of this as an investment - despite the cash outflow towards the home being one of the largest cash flows in peoples' lives - because they do not see 'money being made' directly. Sometimes, there may be other motivations coming in to play. Why is it that doctors seem to prefer driving \"Lexus\" or \"Infinity\" vehicles? Wouldn't driving a \"Hyundai Accent\" or a \"Kia Rio\" take them from home to work and back? Why is it that many Americans prefer an SUV to a compact car even though there is usually just one person in the vehicle? However, in this class, we will work with a narrower interpretation of the term 'investing' and concentrate more on the investment opportunities into two groups which are known as 'Real Assets' and 'Financial assets.' What are some of the major differences between these two groups? When we invest in real assets we usually receive possession of physical goods - things that you can see and touch mostly such as a house or a painting. Though, this may not always be as we will see later on. So, sometimes real assets are also referred to as 'tangible assets.' As we will discuss in more detail later on, we do not want to confuse the term 'real assets' with 'real estate.' In fact, sometimes the study of real assets is broken into two subgroups: real estate (such as the house), and, 'other tangible assets' (such as the painting). Usually, investing in real assets results in a direct claim on certain physical goods with these physical goods quite often being in the possession of the investor (as in the case of the house and the painting). In contrast, investing in financial assets usually results in only getting a piece of paper (a certificate) quite like an \"IOU\" (I owe you). As we will discuss later on, quite often the investor does not get even the certificate as it is kept in trust. Sometimes, the investment in financial assets results in an indirect claim on physical goods (at this point we are not going into 2 how strong that indirect claim on physical goods is). Since the investor rarely sees the physical goods, the term 'intangible' is often applied. During this class, the major portion of our discussions will relate to the investment opportunities that exist in the United States. In other words, we will focus more on 'domestic investing.' With the increasing globalization of trade in goods and services as well as the globalization of the financial markets, it has become easier for an individual to invest in assets outside that of the USA as well as within the USA. Despite the spotlight being on domestic investments in our discussions, we should understand that there are strong reasons to consider 'global investing' rather than just 'domestic investing.' We are also going to rather picky in our terminology and understand that there are differences between 'International investing' and 'Global investing.' When we talk about international investing we will be talking about investments in countries other than the USA since we are discussing under the assumption that we are based in the USA and taking a closer look at the opportunities within the USA. Global investing is the more general term which includes investing in the USA and investing in countries other than the USA. The significance of this differentiation in the terminology will become evident when we talk about the benefits of forming portfolios - investing in a mix of assets rather than an individual asset - and the concept of diversification later on. While there are advantages in thinking in terms of global investing, we have to realize that there may be certain pitfalls too. Many of the investment opportunities which may be available to us in the domestic or home country may be available to us in foreign countries as well. However, certain investment opportunities may be denied to us as individual 'foreign' investors based on the laws of those lands. As we shall see, sometimes we may still be able to invest indirectly in some investment opportunities. We will revisit global investing again later on. In general, real assets tend to be similar around the world though the rules regarding our owning of such assets, especially real estate, may vary. Some real assets may be completely immobile in physical terms whereas some real assets are traded globally. In contrast, in the case of financial assets, there be some similarities or parallels but there may be greater differences around the globe in terms of an individual country's securities, their characteristics etc. We also have to recognize that the financial markets in most other countries are not as well developed as in the USA. Let's take a closer look at what we mean by the investment opportunities in both real assets and financial assets. Identification of Investment Opportunities - Real Assets or Tangible Assets Probably the biggest single investment we all make in our lives is when we buy our home whether we think of the home as an investment or not. However, this is an example of an investment in a sub-group of real assets viz. real estate. Another example that often pops up to one's mind these days - with all the TV advertising - is 'gold.' In reality, 'Real Assets' cover a wide variety of investment opportunities. Some people tend to think of 3 real assets in 2 sub-groups viz. 'real estate' and 'other tangible assets.' However, in this class, we will expand our discussions, especially that of 'other tangible assets,' in broader terms such as Real Estate, Precious Metals, Precious Gems, Collectibles, Natural Resources, and, 'Others.' Real Estate As mentioned earlier, probably the biggest single investment we all make in our lives is when we buy our home. We may not think of the home as an investment as thoughts such as having a roof over one's head, being located in a 'good' neighborhood, being located in a 'good' educational district etc. may be prevailing. Some of these factors actually impact the price of a home. We tend to buy a home by putting some money down and taking a loan to cover the purchase price and the closing costs. While we consider ourselves as the owners, in reality the 'ownership' is 'shared' with the lender of the loan. The money we put down is the start of our 'equity' build up. As payments are made on a regular basis, part of the payment goes towards interest on the loan and the balance goes towards reducing the loan balance so that our equity is further built up. Of course, in reality our 'true equity' is the difference in the current market value of the home (less the selling costs) and the outstanding balance of the loan because in the long run home prices tend to appreciate though there may be bumps along the way (as we are seeing in the current slump in the housing market). Despite this being our biggest single investment, we often tend to discount this forced saving (and potential for subsequent availability of funds) while considering the cash flows over our life-cycle. You might have seen ads on TV talking about a \"Reverse Mortgage\" program for people 62 years or older who own a home. If I understood the ads correctly, they suggest that while the owners can still live in their homes but make no further payments and, in fact, receive a monthly income. Real estate investment need not necessarily be limited to a 'home to live in' - be it a single family home or condominium or town home - but can be much broader in scope. Real estate investment can be into just land, just building(s) or land with building(s). Money can be made from investing in real estate in a variety of ways. One could buy a parcel of land, let it sit until the price appreciates, and then sell the land. One could buy a parcel of land, lease out the land while waiting for the price to appreciate, and then sell the land. While cash inflow only occurs when the land is sold in the former case, in the latter case there is not only a cash inflow at the end of the investment period but interim cash inflows can occur based on the terms of the lease. Yet another possibility is to buy a parcel of land, develop the same by setting up some infrastructure and buildings, and then selling of the land in smaller pieces each with a building. On a different note, one could buy say a duplex and live in one part while leasing out the other part. When the kids go off to college, you might receive letters from realtors suggesting \"Why pay rent for your kid in college? Make money by buying a house and renting rooms out to others and letting your kid live FREE!\" This quite often happens in so-called 'college towns.' On yet another note, one could buy what are known as 'fixer upper' and fix up the house and then resell the same in the open market. Sometimes, these 'fixer upper's are foreclosed homes. You might have seen those ads that are appearing these days - \"Buy a home for as little as $1500.\" 4 Precious Metals These days it is difficult for us to miss ads on popular TV and in newspapers such as \"Turn your unwanted jewelry into Cash! Plus, we will throw in an extra $50 if you call in the next 10 minutes!!\" From time to time you may run into other ads such as \"Prices of Gold are rising! Increase your wealth SAFELY by investing in mint condition gold coins.\" Should you sell your gold or buy it? Is investment in gold really safe? Actually people have had a fascination for gold for centuries. Gold has been used as legal tender. It has been used as a measure of not only individual wealth but as a measure of national wealth. In fact even after the switch to paper money as legal tender was made, gold was used as a standard. Did you know that gold is rarely found in pure form? It is usually found in the form or 'ore' and sometimes in the form of nuggets. The gold that we normally think of is actually refined gold i.e. gold that has been through a process (refining) to separate the pure gold from impurities in the ore or the nuggets. Pure gold (or 24 carat gold) is so soft that it easily looses its shape which may not matter if we are just going to hoard it. Nations would keep gold in the form of bars/ ingots and 'biscuits.' For individuals, the most common form of keeping is in the form of jewelry - necklaces, bracelets, earrings, rings etc. and usually purchased for pleasure without really thinking of it as an item for investment. 22 carat gold is probably the most common wearable as the alloying allows the gold to retain the shape of rings etc. and is the most common grade in countries like India etc. where there is a preference for higher purities. In contrast, in the USA, 18 carat or 14 carat or even 10 carat jewelry is more popular. The higher the carat, the more pure the gold and the higher is the price. I mention all of this just to bring out the point that when we look at a published price of gold we also want to look at what is the quality of the gold. Furthermore, though one pays for the intricacy of jewelry work, one usually does not receive the benefit of the beauty of the workmanship at the time of selling the jewelry. Again, this is something to consider while buying gold for only investment purposes. In recent years 'white gold' has become more popular than 'yellow gold' and accordingly commands a higher price. Gold is considered to be a precious metal because of the value people place on it - as compared to common metals such as iron or copper etc. - due to its relative scarcity. There are other precious metals too such as Silver and Platinum which have not received the same attention. Silver has always been a poor cousin to gold in terms of price. Platinum is more expensive than 'yellow gold' and in the non-too distant past had become extremely popular for engagement rings and wedding rings in the USA until it was supplanted by 'white gold.' There are other metals - such as palladium and iridium which are not so common to the lay person but which may also be considered for investment purposes. Common metals While the above stresses precious metals, we do not necessarily want to ignore that there are several common metals which have commercial value. Some examples are aluminum, 5 iron, mercury, nickel, copper, lead, magnesium, tin etc. These are found in many things we use on a regular basis. It may be difficult for us to invest in these individually directly but we may be able to invest indirectly. What do we mean by 'directly' and 'indirectly' investing? We may have not realized this but we briefly hinted about 'direct' and 'indirect' investments when we differentiated between real assets and financial assets. Precious Gems Who has not heard of the phrases \"Diamonds are forever,\" \"Diamonds are a girl's best friend,\" and so on? Maybe you have seen the TV commercial \"He went to Jarrod's!\" or the TV commercial where the guy gets hosed while proposing with a ring from \"Ritzy Jewelers.\" Since ancient times, there has been a fascination for shiny stones such as diamonds, rubies, emeralds, and so on. These shiny stones have been used for trade, for jewelry, and for storing value for many centuries. In the old days, precious gems were found occurring naturally - of course, rarely - and were cut and polished to enhance their visual appeal. These days, there are man-made stones (including 'diamonds') too which are available in the market. Actually, the list of stones (not all are minerals) is quite long with the stones varying in size, color, shape and so on. Some of the other better known stones are opals, garnets, sapphires, ambers, topaz, onyx, and pearls. There are other gems which are not so commonly known to the average person but which may also be considered for investment purposes. Collectibles Investments can also be considered in many other things which I put under the category of collectibles. Examples of this group are rare coins, stamps, trading cards, antiques, paintings, autographed memorabilia etc. etc. The value of rare stamps has been features in movies such as \"Charade\" and \"Brewster's Millions.\" There are collectors who are willing to pay for rare items which are varied in nature. People are willing to pay for Princess Di's dresses, Michael Jackson's sequined glove, Captain Kirk's dress uniform etc. etc. Not all collectibles run necessarily in thousands or millions of dollars. If your cleaning out the attic or having a 'garbage sale' - oops, I meant a 'garage sale' - you want to make sure that your not inadvertently selling at a low price, or throwing out something that is valuable. That old 'Barbie' doll, grandma's rocking chair, that ugly looking grandfather clock, that 'Superman' comic, those faded garden gnome figurines etc. all may have value. I once saw a TV program where a couple in England found that their knick-knacks were valuable enough to pay for a vacation at Disney in Florida! I also read once where somebody wanted to buy a Nintendo gaming system with the \"Super Mario/ Duck Hunt\" and were willing to pay $1200 for a working set!! I have an old 8088 computer (CPU only with 2 floppy drives but no hard drive) sitting in my garage. Do I hear a clamoring of bids from you all? Just dreaming, I guess! Natural Resources Another sub-group that can be considered is that of 'natural resources' (which I am differentiating from 'mineral resources' since we have already discussed the metals and 6 gems separately) such as oil, natural gas, farmland, timberland etc. Once again, it may be difficult to invest in these individually directly but we may be able to invest indirectly. Other Commodities We have already discussed some ideas relating to investments in 'Commodities.' Conventionally, 'Commodities' which are traded include metals (precious, industrial and rare) and energy (including oil and natural gas). However, there are other commodities such as agricultural products, livestock and meat. Agricultural products include grains (rice, wheat, oat etc.), and, food and fiber such as corn, soybeans, soybean oil, cocoa, coffee. 'Others' We have already discussed some ideas relating to other 'investments' which do not fall into any of the above categories. I am sure if we sit down and brainstorm we can come up with several other ideas. Just to kick off: a ranch to breed 'prize horses' or to breed 'breeding bulls,' 'training camps,' 'driving school' and so on. Does anyone have any other suggestions? The more, the merrier! As can be seen from the above, the universe of 'Investments' is very vast and extends way beyond the galaxy of stocks and bonds. How practical will it be? How advantageous will it be? What if we don't have the thousands or millions of $s required for the initial investment? What if our garage and/ or attic are empty and cannot be a source of funds by selling off the investments made by others but we have inherited? Where are we going to get the expertise? Do we even know the 4 Cs of diamonds - are they Cut, Clarity, Color and Carat Weight? So many questions for which we need answers! And more: Will we be able to cash in when we need to without having to offer huge discounts? Will be able to get information on prices etc. to give us a better feel as to what price we should pay while buying and what price can we expect when selling? These questions suggest concepts, viz. 'liquidity risk' and 'information risk' that we will discuss in more detail. As we go along, we realize that investing for the future involves uncertainty which may be due to various reasons. In other words, when we invest we are taking chances. We hope to make money but in order to do so we may have to take chances i.e. take on risk. Is this always true? Isn't there anything that is completely safe? What this means is that when we consider investing, we need to look at the universe of investment opportunities. Some of these may be 'safe' or risk-free while others involve taking chances or risk. Thus, we need to start off by looking at the universe of risk-free assets and risky assets. We can look at the universe of risk-free and risky assets in another way i.e. in terms of real assets and financial assets. We have taken a look at a majority of the real assets above - some of which seem relatively risk-free and others not so. Who can predict accurately about the harvest when crops are sowed? Who can say for 7 sure that we are not going to come up with a dry well when drilling for oil or gas? Who can say for sure when the gold ore is going to run out from a gold mine? If we troubles associated with investing directly in real assets especially due to money constraints, maybe we might be better off considering 'indirect investments' i.e. investments in financial assets which may give us an indirect claim on real assets. For starters, let us look at the opportunities within the USA that is domestic financial assets. When we expand our discussions to global investing, we will also consider foreign financial assets. Identification of Investment Opportunities - Financial Assets I usually like to break up financial assets into 3 major groups: First, the basic securities viz. stocks and bonds; second, the derivatives viz. options, warrants, convertibles etc.; and third, various types of funds. In this class, we will discuss investing in the basic securities in more detail. In this class, we will discuss derivatives and funds only briefly. My philosophy is that we must first learn to crawl and walk before we learn to run. Accordingly, let us take a look closer at the basic securities - stocks and bonds. Whenever I think of stocks and bonds, the first thing I remember is that for a long time the only thing that I knew about bonds was \"Bond, James Bond\" and the fabulous 'Bond girls.' Then one day a director of the company I was working for came along and asks me \"What is the difference between a bond and a debenture?\" Before I could really think, what slipped out was \"Difference? I always thought Bond and Adventure went together!\" I could have done with a Kit-Kat bar at that time. Luckily, the director thought I was joking. Even more luckily he was called away to take a phone call. So all I had to do was to roll my eyes upwards and thank the superpowers that be! Of course, I couldn't keep dodging the director forever, so I had to go out and learn more about bonds and at the same time learnt that there's more to stocks than meets the eye [with due apology to \"Transformers\"]. While looking at bonds, I found that in the U.S.A. there are several issuers of 'bonds' with the Federal Government and Corporations being the largest issuers in terms of quantity and value. The Federal Government's major issues were Treasury Bills, Treasury Notes and Treasury Bonds (more popularly known as T-Bills, T-Notes, and TBonds respectively). In addition, the Federal Government had created some 'Agencies' which too issued bonds known as Agency Bonds. Bonds were also issued by various States and Local Governments in the form of Municipal Bonds (more popularly referred to as \"Munis\"). Corporations also issued bonds referred to as Corporate Bonds. An interesting aspect of corporate bonds was that these bonds were almost always issued by large and very large corporations. Thus, one way in which bonds can vary is in terms of who is the issuer. Bonds also vary in terms of their life at the time of their issue. This is referred to as the 'initial life of the bond.' T-Notes have an initial life which is greater than one year but at most 10 years. T-Bonds differ in this respect from T-Notes because their initial lives are 8 greater than 10 years but rarely over 30 years. The other issuers tend to issue bonds with lives greater than 10 years which could go up to 25 years though there is no strict rule about this. T-Bills are not strictly considered as bonds because they have short lives with 90 days and 180 days being the most common initial lives. Large and very large corporations also may issue short-term securities known as Commercial Paper with initial lives varying from 3 days to 270 days. Others - financial institutions such as banks, credit unions and the like mainly - also issue short-term securities known as Negotiable CDs, Eurodollars etc. etc. Only corporations issue stock. Why? Because stocks have one feature that is very different from the securities discussed earlier. That feature is based on the type of relationship that is created between the issuer and the investor. In the case of stocks, the relationship is that of ownership (or 'Equity') while in the case of the other securities the relationship is that of creditor ship (or 'Debt'), What is the significance of the differences in issuers, of the differences in initial lives, and, of the differences in the type of relationship? Are there other differences? We will discuss this further as we go along. Note: Answer to Pop Quiz: The original or ancient the 'seven wonders of the world are generally accepted as The Colossus of Rhodes, The Great Pyramid of Giza, The Hanging Gardens of Babylon, The Lighthouse of Alexandria, The Mausoleum at Halicarnassus, The Statue of Zeus at Olympia. And, The Temple of Artemis at Ephesusthe; while the modern 'seven wonders of the world,' as per a worldwide survey are Chichen Itza (Mexico - Mayan City), Christ Redeemer (Brazil - Large Statue), The Great Wall (China), Machu Picchu (Peru), Petra (Jordan - Ancient City), The Roman Colloseum (Italy), and The Taj Mahal (India). So far, I have visited only one from each group - The Statue of Zeus at Olympia, and, The Taj Mahal (India). 9 Thinking Outside the Stocks - WSJ http://www.wsj.com/articles/SB10001424052748703882304575465600161453406 http://www.wsj.com/articles/SB10001424052748703882304575465600... Brent Hayes of Athens County, Ohio, has made big profits by purchasing abandoned railbeds and reselling the land. ANDREW SPEAR FOR THE WALL STREET JOURNAL ALTERNATE UNIVERSE Student Housing: REITs and private investors are scouting out big apartment complexes close to universities. They can generate 7% to 9% annual returns with lower risk than other apartments because parents co-sign the leases. ASSOCIATED PRESS Self-Storage Facilities: One of the fastest-growing sectors of commercial real estate, these low-maintenance properties can generate annual returns of 9%, or more in some locations. ASSOCIATED PRESS Cell-Tower Leases: Owners of well-situated properties can extract additional income by leasing land or roof space to wireless companies for cellphone antennae. Leases generally range from $300 to $3,000 a month, per antenna. BLOOMBERG Parking Lots: Annual returns of 6% to 8% are possible, and the land can be converted to higher-yielding properties in the future. Also: Owners can raise rates on short notice, making the investment a good inflation hedge. REUTERS Railroad Rights-of-Way: There could be more than 100,000 miles of old railway in the U.S., much of it abandoned and selling cheaply. The land is often ripe for future development. ANDREW SPEAR FOR THE WALL STREET JOURNAL Object 2 DOW JONES, A NEWS CORP COMPANY News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services. DOW JONES Barron's BigCharts DJX Dow Jones Newswires Factiva Financial News Mansion Global MarketWatch Newsmart NewsPlus Private Markets Risk & Compliance WSJ.com WSJ Pro WSJ Conference WSJ Video NEWS CORP Big Decisions Business Spectator Checkout51 Harper Collins New York Post PropTiger REA realtor.com Storyful The Australian The Sun The Times DJIA S&P 500 18119.38 2131.69 -1.12% -1.27% Subscribe Now Sign In The Wall Street Journal Sections My Journal Home World Nasdaq 5154.22 -1.11% U.S. 10 Yr -16/32 Yield 1.718% Crude Oil Euro 44.95 1.1245 -2.89% 0.08% U.S. Politics Economy Business Tech Markets Opinion Arts Life Real Estate Today's Paper SHOW ALL SECTIONS HIDE ALL SECTIONS World Home Africa Asia Canada China Europe Latin America Middle East Brussels Real Time China Real Time India Real Time Economy World Video U.S. Home Economy Law New York Politics Real Time Economics The Numbers Washington Wire Journal Report U.S. Video What's News Podcast Politics Home Think Tank Washington Wire Politics Video WSJ/NBC News Poll Economy Home Real Time Economics Economic Forecasting Survey Economy Video Business Home Management Tech/WSJ.D Aerospace & Defense Autos & Transportation Commercial Real Estate Consumer Products Energy Entrepreneurship Financial Services Food & Services Health Care Hospitality Law Manufacturing Media & Marketing Natural Resources Retail CFO Journal CIO Journal CMO Today Logistics Report Risk & Compliance Bankruptcy Beat Heard on the Street Business Video Journal Report Business Podcast Tech Home CIO Journal E-Commerce Mobile Personal Tech Privacy & Security Startups Christopher Mims Geoffrey Fowler Joanna Stern Personal Tech News Venture Capital Dispatch Billion Dollar Startup Club Tech Trader Daily Tech Video The Accelerators Tech Podcast Markets Home Bonds Commercial Real Estate Commodities & Futures Currencies Deals Financial Services Funds Stock