Syllabus
DESCRIPTION
Economics of Investments (EC 4451 Formerly EC 4990) examines the applications of economics to investment markets. We will explore investment markets not from a financial viewpoint but from an economic viewpoint where investments are complex products derived from profit-generating assets or businesses. From a microeconomic perspective, we will look at the behavior of producers, consumers, and governments in the economy and how these decisions making “agents’ interact within investment markets. From a macroeconomic perspective, we will look at how aggregate or economy-wide values such as national output, unemployment, interest rates, and price inflation (or deflation) impacts investment markets and decisions.
Every topic will require background lectures to understand the dynamics of real estate, equities, and other asset markets. The class relies heavily on discussions and analysis of various markets. Students are expected to have a solid foundation of basic economic concepts. Previous investment knowledge is not required but various investment assets such as real estate or equities will be addressed but due to time restraints, not all aspects of each asset or market will be discussed.
Like business case studies, this class will study investment case studies but with a focus on the economic perspective versus a financial or valuation perspective. We are looking at investments and their related markets not as a financial analyst but as an economist.
Phenomenon-based learning will be used through studying various investment decisions. The class will be taught in a discussion and discovery fashion that centers on a presentation of the most important topics and a discussion. You are expected to ask questions and add value to the discussions. There are no wrong answers or bad questions. The better the discussions are, the easier your exams will be. Economics has many abstract and theoretical topics that will require studying. The lectures will not cover all topics from the book, but you will still be responsible for the reading. Reading, attending class, doing homework, and taking notes is the best way to ensure you will get a good grade in class. Especially reading.
GRADING
Discussion 20%
Game Participation 10%
Midterm Project 25%
Presentations 20%
Final Project. 25%
PROJECTS
Two projects will be required in the class. The midterm project will be focused on personal long-term financial planning. The final project is centered on building a short-term and long-term portfolio. The projects will be delivered online via Webflow or any online platform in addition to being presented during class.
DISCUSSION
There will be in-class and online discussions. The discussions will be in a free form via in-class and online. Contribution can be in a form of a shared article, study, personal story, opinion, or stats but should not duplicate the previous contributions. If the contribution is an opinion or story, evidence or economic reasoning should be supplied.
SCHEDULE (SUBJECT TO CHANGE)
- Syllabus & Introduction
- Why do we invest and what is an investment?
- Supply & Demand of Investments
- Investment vs Speculation
- Personal Finance & Retirement
- Macroeconomics and Investments
- Microeconomics and Investments
- Businesses – Basis of Investments
- Equities & Stocks
- Angel, VCs + Startups
- Active Real Estate: Residential + Commercial
- Passive Real Estate: Funds, REITS, Private Funds, Lending
- Bonds & Lending
- Taxes
- Cryptocurrency + Decentralized Finance
- Commodities: Gold, Silver, etc.
- Art & Other assets
- Investment Market History
- Risk Management & Diversification
- Investor Psychology
- Midterm Projects
- Group Presentation
- Final Projects
Investing Game
Link: https://www.investopedia.com/simulator/games/join-game
Search: Game Name: EC 4451 Spring 24
Password: funnymoney
Reading
Section One: Introduction to Investing
Section Two: Investments, Speculation & Retirement
Section Three: Macroeconomic, Microeconomics & Markets
Section Four: Business Fundamentals
Section Five: Stocks & Equities
Section Six: Start-ups, Angel Investing & Venture Capital
Section Seven: Real Estate
Midterm Project
Section Eight: Fixed Income
Section Nine: Taxes
Section Ten: Alternative Investments
Section Eleven: Risk, Portfolios, and Psychology
Section Twelve: Personal Finance
Group Presentation
Final Project