Commodities: Gains on Fed announcement

On Wednesday 4/27, Federal Reserve Chairman Ben Bernanke made a public statement that effectively said the following: we're done buying bonds, but we don't expect interest rates to drastically change. With low interest rates comes the possibility/probability of inflation -- with this inflationary expectation, it's no surprise that commodities prices ascended. AGQ, an ETF with a bullish stance on the value of silver, saw a single day gain of over 13.5% on 4/27. GLD, a similar ETF linked positively to the value of gold, saw a more tempered (but still positive) gain of ~2% on Wednesday the 27th. The value of these instruments (and their underlying commodities) should be interesting to follow in the coming months, especially as QE2 comes to a close at the end of the second quarter.

Newsletter - 1st & 2nd Volume

Hey Guys,

Check out the first two volumes of our newsletter!

See links below:

Newsletter Volume 1

Newsletter Volume 2

Costly College: More than Tuition

Think paying for tuition and rooms and board is good enough? Think again!

When it comes to paying for college, tuition and housing are just the beginning. The real catch is the supposedly trivial miscellaneous costs. These costs include cab fare, parking permits, concert tickets, eating out, shopping spree, and much more. School meals plans cannot cover all the midnight food deliveries and caffeinated beverages, just like free university shuttles cannot guarantee low transportation costs. And students often find themselves packing new clothes into their wardrobes. Now, as we approach the end of our school year, what happens to all those things that we stuffed into our wardrobes and dorm rooms? Last things on the budget, storage payments and extra shipping costs.

Read personal accounts from parents at: http://online.wsj.com/article/SB10001424052748704487904576267393582628666.html?mod=WSJ_PersonalFinance_PF4#articleTabs%3Darticle

3 Years in Jail for Blogging

In Cairo, an Egyptian blogger, Maikel Nabil, was sentenced to three years in prison for criticizing the military in what human rights advocates called one of the more alarming violations of freedom of expression since a popular uprising led to the ouster of President Hosni Mubarak two months ago.

Mr. Nabil assailed the Egyptian armed forces for what he called its continuation of the corruption and anti-democratic practices of Mr. Mubarak.

Read more at:

http://www.nytimes.com/2011/04/12/world/middleeast/12egypt.html?_r=1&smid=tw-nytimes&seid=auto

Japan: No Rest For The Weary

New worries spiked after another major earthquake (7.4 magnitude) shook northeast Japan on Thusday night. The world's third largest economy, right behind US and China, has been stagnant for years and is now facing arguably the worst crisis since World War II. Besides human suffering, the country now carries heavy economic burdens as the nuclear safety hazard creates a long-term regional energy shortage. The ongoing tension in the Persian Gulf and rising oil prices only make the problem worse. With the possibility of another magnitude 9.0 earthquake and tsunami looming, according to official research, Japan's economic prospect seems rather grim and uncertain at this point.

Follow up and read more on the economic and political impact of Japan's earthquake at: http://thisbluemarble.com/showthread.php?s=036635f37dab04d7839f72114bb8b91f&t=35866

Another Tech Bubble

Are we heading for another tech bubble? The latest technology funds and Internet start-ups have been given very substantial valuations. For example, valuations for Facebook have quintupled within the last 2 years and Groupon's estimated value increased from $1.4 billion to $25 billion.

What are the implications of this?

Read more at: http://www.nytimes.com/roomfordebate/2011/03/30/are-we-heading-for-another-tech-bubble?ref=business

Looking Back: Alexi Savov

Just a recap of our event on March 24th! Alexi Savov, Assistant Professor of Finance led us through an interesting discussion on Risky Arbitrage. Although seemingly confusing (how can an arbitrage be risky?!), Professor Savov successfully guided us through the mechanics of arbitrages and their application to markets in real life.