Day trading is a unique topic in that some of us have at one time or another have “played the market” or more likely the “market has played us.” Regardless, as many of us combat a down economy, a brutal job market, and enter a period of time when millennials are redefining what a rewarding and successful career actually is – it is an interesting possibility; could I make money while in my underwear?
After the Federal Reserve’s announcement of a new quantitative easing program and the midterm elections, the S&P 500 Index rose 1.9% to 1221, a 23-point increase that brought the index to its highest close in over two years. And with interest rates at an all-time low and expected to remain in that position for the coming months, investors are likely to boost their returns by taking on additional risk and purchasing stocks, according to an article on the Wall Street Journal. That implies higher stock prices, and individual investors have been taking notice. In a recent report from TrimTabs Investment Research, private investors had poured $759 million into U.S. equity funds in the week leading up to the Fed’s announcement, the first time in six months that they have put more money into the U.S. market than they have taken out.
The wage gap that exists between the genders is a well-known phenomenon in the work force. According to a report by the U.S. Census Bureau, as of 2008 the median earnings for women are $10,622 lower than those for men, and women earned only 77 cents to each dollar men earned. Moreover, the National Committee on Pay Equity estimates that over the past 40 years, the real median income for women has fallen short by anywhere from $700,000 to $2 million, depending on the highest level of education attained. In fact, Evelyn Murphy, an economist and the president of The Wage Project, demonstrated that the wage gap, in purely monetary terms, widens as the education level rises; while a female high school graduate may earn up to $700,000 less than a male counterpart over her lifetime, for instance, a female college graduate may see as much as $1.2 million less in the bank.
Check out this speech by former Morgan Stanley CEO John Mack about his experience during the financial crisis back in September 2008. Thanks to Wharton for filming the event and to Wikimedia for the picture.
There are many indicators of the severity of the 2008 financial crisis. Perhaps the clearest and most incisive indicator is the celebrity status of economist Paul Krugman. The man hardly requires an introduction--among other things, he is a Princeton professor, NY Times columnist, and Nobel laureate.
The Economist details the work of economists Elinor Ostrom and Oliver Williamson, the most recent Nobel Laureates in the field of economics. The article describes the development of the study of transaction costs, which Ronald Coase started with his now famous 1937 work. Check it out here.
With the U.S. unemployment rate rising to 9.7%, college students seeking full-time jobs out of school take a brunt of the blow. Josh Davis, of Texas Christian University, writes about how recent college grads are now pursuing internships directly out of school instead of full-time employment. This proves to provide a double-benefit, as companies can hire these interns to replace laid-off employees while giving these college grads workplace experience. Check out the full article here.
The massive sell-off and rebound of the financial markets in the past year has called for new ways to examine decision-making and risk management. In this interview with The Economist, Greg Davies, an economist at Barclays Wealth, discusses how insights from behavioral finance can help us understand markets and be used to improve products in the financial services industry.
Find out about how supporting Business Today's mission can benefit your company. Click to learn more about sponsorship.
Write for the most widely circulated student
run publication in the country. Now accepting
submissions from students and executives!
© 2012 Business Today
%26hl%3Den%26sa%3DN%26start%3D18&ei=8WMoS5qcApPL8Qazt4GoDQ){kind=link}