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DISCUSSED DURING HAWKTRADE MEETINGS. Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. Investing in any financial instruments does not guarantee that an investor will make money, avoid losing capital, or indicate that the investment is risk-free. There are no absolute guarantees in investing. HAWKTRADE and its members do not bear any responsibility for losses or gains made by members trading on their personal accounts based on analysis from HAWKTRADE meetings.

 Hawkinson Applications due October 23 rd
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Neil Bloomberg Presentation
Junk Bonds, China Imports, Fed Rate
Indecision
Sector Updates

 Help you stay informed about the market
 Enable you to make good decisions
 Advance your modeling skills
 Prepare you for a career in Finance
 Have a nice skill to put on your resume
+ You can get free of charge in school!

• Research: Read the resources to prepare for 2 exams
• Exam: Complete the 2 corresponding Exams.
• Acknowledgment: If you get 75% correct of the 1 st exam, you’ll be able to take the 2 nd exam. If you get 75% correct of the 2 st exam, you can get an acknowledgement.

1) Core Program
2) Market Sector Program

 Find a Bloomberg Terminal

Request a Certificate
1 in ITC, 4 in Bus LIB, 1 in PC, 1 in the Hallway
 Register a Bloomberg Acct
 Need have your phone handy
 Log in, type “BESS,” and press the enter key

It takes AEV students a semester to learn a DCF model.
With Bloomberg build-in templates, you build it within seconds and change your assumptions with ease…

It takes AEV students a semester to learn a DCF model.
With Bloomberg build-in templates,

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A junk bond is a high-risk, high-yield security issued by a company in order to raise capital.
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Rated BB/Ba or lower.
 Often times used when financing a takeover.

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Outcome: Income investors have been chasing higher yields at the expense of riskier bonds.
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Junk Bond/Treasury Spread is currently rising, signaling investors see the risk becoming greater than the yield.

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As treasury yields rise, there will be less demand for high-interest/high-yield junk bonds.
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There is concern that companies will have a hard time refinancing their debt putting them at default risk.
 Energy Sector fear of defaulting.

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Many famous economists theorize junk-bonds will signal the next crash.
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As interest rates rise, there will be a run on Junk bonds and too many outflows will signal panic.
 Junk bond outflows already have started.
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Junk bonds only popular since mid1980’s and haven’t experienced rising rates.

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20.4% drop in imports from September vs last year
September imports = 145.2 BB
*Reinforces the weak demand from the
World’s 2 nd largest economy*

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2 of the 14 federal reserve governors openly stated that they would be against raising rates in 2015 (both were “doves”)
Divergence from Yellen policy of raising rates by the end of 2015
Effects:
 lack of credibility if rates raised (since some members are split)
 Increase anxiety about state of global economy…

 AB InBev purchase of SABMiller goes through
 $104 billion purchase price
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 AB InBev will control nearly 30% of the world beer
 supply after expected divestitures
Alibaba to release earnings October 27 th
Stock increased 20% since October 1
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Walmart cuts growth outlook
$20 billion plan for stock repurchasing

 iShares NASDAQ Healthcare ETF still volatile

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EMC accepts Dells price at $67 Billion
 Stock still trading down
Apple pay expanding to Starbucks
New facial recognition technology
 Apple, Mastercard, PayPal all wanting a piece

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GE to Sell Commercial Lending and Leasing
Businesses to Wells Fargo
JP Morgan’s Revenue Slides on Weak
Trading Results
Financials down as earnings season begins