8-30 & 9-4

8-30 & 9-4 - 8/30/07 Dow Jones Thirty Big Cap, Blue...

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8/30/07 Dow Jones – Thirty Big Cap, Blue Chip – “The Best” Nasdaq – Samples of 100 Stocks Ben Bernanke – head of Federal Reserve (Central Bank of U.S. – Bankers Bank) -Controls money supply and monetary policy - Interest rates Single stock prices always go in opposite direction of interest rates. Extra Money: - CD: Better interest rate. (Longer you give money to bank the better they pay.) Guesses about interest rates are important. Interest Rates Go Up: Inflation Interest Rates Go Down: Recession Japanese Stock Market – Nikke -1990: 34,000 - Today: 13,000 Warren Buffet – Worth 36 Billion from playing Stock Market REAL – Taking money and turning it into something real. Nest Egg – Money put away for future. Interest is the opportunity cost of stocks. Inflation Raise Intgerest Rates Stocks Market goes DOWN Mutual Funds – Europacific Aggregate – Sum of… Multiplier Effect – Companies don’t sell so they lay off.
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8-30 & 9-4 - 8/30/07 Dow Jones Thirty Big Cap, Blue...

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