1. The Stock Market & Financial Institutions

2. Market Indices  Dow Jones  S&P 500  NYSE  AMEX  Nasdaq  Russell 2000  Wilshire 5000  Etc.

3. Major Financial Institutions  Goldman Sachs  BNP Paribas  Barclays Bank  Deustche Bank  Bank of America  JP Morgan  Citi Bank  RBC Bank  Wells Fargo  UBS

4. Terms  Long  Short  Bull  Bear  Investment vs. Trade  Play

5. Trading Instruments  Equities  Bonds  Futures  Options  Etc.

6. Brokerages  Direct  Online  Fidelity  TD Ameritrade  E*trade  Scottrade  Etc.

7. Managing a portfolio  What is your goal?  Retirement?  Education Account?  Trust?  Different Strategies for your desired goal  More aggressive  Fixed Income as you get older, etc.

8. Roth IRA  Open one now  After-tax money inflow  No tax consequences when you retire  Drawbacks: $5k limit per year. Can only withdraw at 59.5  Example: If you you started now at age 18, with $5k, and put $5k a year in, and invested in corporate bonds at an interest rate of 6%, your account value at age 60 will be$930k

9. Refer to excel sheet…

10. Traditional IRA  Put in pre-tax money and write it off your yearly taxes  Drawback: you get taxed on the opposite end  So is it worth it getting taxed on the front end and investing (Roth IRA) or getting a tax credit and being taxed at the end?  In most cases, it’s not worth it.  Roth IRA

11. Other Investment Vehicles  401k Plan  Mutual Funds  Index Funds  Hedge Funds  Private Equity Funds  etc etc. Take your pick. But do your research.

12. Making $$$  Various Strategies  Technical  Fundamental  Personally, I’m a combination of both  Evaluating a good company in hopes that they turn a profit for their shareholders

13. Ways of evaluating a company  Discounted Cash Flows (DCF’s)  Comparables  Leverage Buy Outs (LBO)  Fundamental ratios  P/E, P/B, ROE, Profit Margins, Current Ratio, etc etc.

14. Simple Strategy  Ticker Symbol: SPY  Did the analysis for you already from 1996-2012  If you simply bought long when SPY crossed ABOVE the 200 day moving average, and shorted when it crossed below, you would have turned $50,000 into $272k between the years of 1999 and 2011  That is a 15% return over the past 12 years. Much better than the average market return of 8%

15. Things to always consider…  Market health  Volatility  Economic situations domestically and internationally  Political influences  Cyclical behavior  Markets will fail at certain points. The question is how well prepared your portfolio is for the fall.

16. Taking it further  Say you took the previous strategy and applied it to your Roth IRA instead of buying corporate bonds with an interest rate of 6%  With 6%, you’ll end up with $930k  With 15% returns, guess how much?

17. …..$13,546,232  Questions?