Accounting and Finance

Faculty Fulbrights bring international partnerships to Dearborn Wolverines

stuxbury — Mon, 16 Dec 2024 16:55:56 +0000

Faculty Fulbrights bring international partnerships to Dearborn Wolverines stuxbury Mon, 12/16/2024 - 11:55

Three ��-Dearborn faculty from three different colleges were awarded grants to teach or conduct research in three different areas of the world — Indonesia, Egypt and Ethiopia — through the Fulbright awards program.

The U.S. Fulbright Scholar exchange program, sponsored by the U.S. Department of State Bureau of Educational and Cultural Affairs, awarded grants to ��-Dearborn faculty. Composition and Rhetoric Teaching Professor Kristian Stewart received an award for the 2023-24 cycle. Business Economics and Finance Lecturer Mercedes Miranda and Computer and Information Science Associate Professor Birhanu Eshete earned grants for the 2024-25 cycle.

“A Fulbright Award is a way we can bring other parts of the world back to our students,” says Stewart, who did her most recent Fulbright in Indonesia over the summer. “We have diversity on our campus. There are times when I have students with five different first languages in my classroom. But we can still get isolated in our own groups, in our own enclaves. So it’s important to connect our students with people in different areas of the world that they may be unfamiliar with. And it’s important for them to learn how to tell — and listen — to the stories of others. Fulbright awards open doors to connect our students to people in different areas of the world.”

Reporter spoke with Stewart and Miranda about their recent awards. Eshete, who is currently in Ethiopia, will be highlighted in a future story.

Mercedes Miranda, Egypt

Miranda says an exchange opportunity changed her life when she was a college undergraduate. As a part of a pilot program at her university in her home country of Ecuador, Miranda — an economics student — was chosen to join a cohort that would study at the University of New Orleans in the United States.

“That opened a world of opportunities for me to create new networks to climb the career ladder and to experience a different culture,” says Miranda, who notes that, as cultural immersion, she watched “Saturday Night Live” until she was able to pick up the references and laugh at the jokes. “Many of our students at ��-Dearborn may be of Arabic descent, but they are born here and do not have the financial means to travel outside of the U.S. I see this Fulbright as a way to help me better understand life in a MENA (Middle Eastern and North African) country, while also creating ways to help my ��-Dearborn students connect with people across the world.”

Starting in February, Miranda will be teaching four-month business economics courses in Egypt, contributing her expertise to global academic exchanges and fostering international collaboration. Miranda has previously done non-Fulbright teaching in China for MBA students and in Italy for undergraduates.

Miranda’s Fulbright university will be in Cairo, but the name of the institution will not be shared with her until 10 days prior to the beginning of the Fulbright due to their protocol. She will teach both undergraduate and graduate courses that have an interdisciplinary, hands-on approach and merge concepts from finance, business economics and international business.

“I am going to teach through using business case studies through the Egyptian economic perspective, while also having the students reach out to Egyptian businesses to create a collaborative project that will help the businesses and give students the applicable knowledge they need,” she says. “I do something similar at ��-Dearborn, except from an American perspective and we work with Dearborn- and Detroit-based small businesses.”

Miranda enjoys seeing other areas of the world, but this will be the first time she’s traveled to Egypt. She chose to apply to the country specifically because it was the largest country in the MENA region with an institution where she could apply her international business economics expertise and 20% of the population are in the age range of 15 to 24.

“Many of our students are fluent in Arabic and I wanted an Arabic-speaking country that had a younger demographic. I see my Fulbright as the first step to a partnership of some type. Maybe it’s a project or a class. Maybe it’s having ��-Dearborn students go there or for Egyptian students to study here,” says Miranda, who notes COB Dean Frédéric Brunel will visit Egypt while she is there to meet faculty and university officials. “No matter what it will look like, I do know that this is only the beginning of something very wonderful.”

Kristian Stewart, Indonesia

When Stewart returned from Greece in fall 2023, after her first Fulbright Scholar Award, Stewart looked for additional international collaboration opportunities through Fulbright. She found a Fulbright Specialist opportunity to create a Center for Academic Writing at the Universitas Negeri Medan in Medan, Indonesia, in the summer 2024.

In addition to developing a Centre for Academic Writing on the Medan campus, running workshops and giving talks, Stewart provides one-on-one instruction and critiques for faculty academic papers. “After the six weeks, I left them the curriculum that I developed as a foundation for their Centre for Academic Writing,” she says. “To continue our relationship, I'm still working with their faculty. On Tuesday mornings our time, I'm theirs for the morning. They can put questions or their scholarly work in WhatsApp or a Google drive and I can edit and give feedback.”

Before Stewart left Indonesia, she and university employees discussed how they would like to come to ��-Dearborn and co-teach with her or how they can bring ��-Dearborn students there.

“The Fulbright Specialist award might be for a relatively short period of time, but the effects of the work being done through the program will be long lasting for me, their faculty and our students,” Stewart says.

Working with the University of Peloponnese in Greece during her first Fulbright Award, Stewart tailored her ��-Dearborn digital storytelling course to fit the needs of the Greek school’s curriculum, available technologies and student population. One such example project comes from Stewart’s ��-Dearborn course, “Being Human Today.” Stewart’s Dearborn Wolverines collaborate with students from universities around the world to create short videos that present life through individual lenses. “You combat stereotypes by having experiences outside of your own. You find solutions to world issues by learning from other people and seeing how they solve problems. Exposure is key,” says Stewart, who has previously taught in multiple countries, including South Africa, China, Germany and Italy.

A highlight of her first Fulbright Award was an invitation to provide a plenary address at Jefferson House, the residence of the United States Ambassador to Greece, where she was proud to provide remarks and represent ��-Dearborn to an international audience that included United States Ambassador to Greece, George J. Tsunis.

Stewart says as a result of her Fulbrights, her goals are to foster additional international connections and projects to benefit ��-Dearborn students. And it’s working.

��-Dearborn and the University of the Peloponnese recently signed a Memorandum of Understanding. Students and faculty from the two schools plan to work together for the next five years on writing-related research endeavors, including students virtually working together and sharing stories.

Stewart has additionally established a Collaborative Online International Learning partnership with biotechnology students in South Africa, and they just finished an eight-week project. Together, in WhatsApp groups, students investigated one of the United Nations Sustainable Development Goals students then co-authored StoryMaps reflective of their research. Stewart also plans to connect Dearborn students to the Indonesian students, stemming from her work in Medan, in the near future.

Story by Sarah Tuxbury

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Three faculty members from three ��-Dearborn colleges — COB, CECS and CASL — earned awards to work in Egypt, Ethiopia and Indonesia.

��-Dearborn faculty members, from left, Mercedes Miranda, Kristian Stewart and Birhanu Eshete

College of Business student Adrian Maloy juggles many roles to capitalize on the college experience

rudmehta — Sat, 05 Nov 2022 22:14:05 +0000

College of Business student Adrian Maloy juggles many roles to capitalize on the college experience rudmehta Sat, 11/05/2022 - 18:14

Adrian Maloy is everywhere on campus. From dawn ’til past dusk at least four days a week, the accounting and finance student travels from the Combined Services Building to the Administration Building to the University Center to Fairlane Center to the CASL Building. It’s not always in that order, of course. But, with a campus footprint like that, you may have crossed paths.

Always on the lookout for business experience, the entrepreneurial thinker constantly searches for new titles and new ways to expand his network or develop skills. If you ask Maloy, he doesn’t feel he’s doing anything overly ambitious; he’s just enjoying college. He said there’s so much here — you just need to be open risks and development opportunities.

We recently spent some time with Maloy to see how he makes the most return-on-investment throughout his day.

8:21 a.m. Remembering the important things at Westborn Market.

I try to get up early so I can run errands for my grandma in the mornings, like grab a few things from the grocery store or pick up her prescriptions before I go to school. Today is a little different because I’m shopping for her birthday. I try to get her flowers at least once a month, but she prefers plants. Her birthday is today, so I want to find a plant I think she’d like.

It’s important to honor and care for those who come before you. Showing appreciation is essential. It lets people know that they are valued and that they’re never too far from your mind.

8:45 a.m. Looking for the positive during hectic times.

This morning my car was stuck behind a stalled garbage truck and I was worried about running late. It’s not my style and I feel a bit off my game. I just realized that I didn’t pack a lunch. I have my internship until 3, so I need to grab something.

Maybe it’s a sign the today’s going to be a good one after all. I realized I forgot lunch when I was still at the store. That’s a win.

10:07 a.m. Creating a better process, developing new skills.

I’ve worked as a Business Affairs intern since January. I rotate to the different campus offices like Public Safety, Facilities Operations and the Business Affairs office. The main project I’m working on now is for Facilities Operations. It’s a dashboard project that will help with reporting — there are seven managers in Fac Ops, and my goal is to create a way for them to easily read and review user reports. The dashboard project touches on a lot of data analytics and finding the right way to visualize data so that it’s easy to read.

Sometimes numbers can look like jibberish when you don’t know what you are looking at; so I’m working to create something for the data to make sense at first glance. The work I’m doing at this internship is helping me hone in on how to briefly and concisely present information in an easily understood way. For someone who plans to work with numbers to convey financial information, that’s a good skill to learn.

4:10 p.m. Helping others figure out this college thing.

When I saw that Counseling Services was starting a peer mentor program this year, I signed up and trained to be a facilitator. I listen in a group situation to college students who are facing emotional and mental obstacles. I wanted to do this because I know how that negative energy can take you away from your goals.

When I first got here for college, I had just gone through a breakup. We grew up together, and it was weird to not have that person there anymore. So I was in college, knowing I had a great opportunity to take, and not focusing on school. I went to counseling, they helped me through the process and I’m cool now. I’m in a good place.

I want to help other people get there too.

5:43 p.m. Giving ideas during a transformational time.

As business manager for the Michigan Journal student newspaper, I’ve been helping with getting us into the digital age. Last year the focus was on beginning a website; now we have one. Our goal at the Michigan Journal is to touch people’s lives and get as many eyes on the product as possible. I think a digital medium can get us there faster than paper.

Don’t worry — we aren’t getting rid of the paper version, but hear me out: The overhead cost is lower since there isn’t a physical product to create and deliver, it can always have the latest news since there isn't a cut-off time for digital, it can be shared to a larger audience and you can track the metrics. I think that would help us sell more ads, which would create a better and more profitable product. There is a market for paper and news is important, especially today. So I don’t want to come across as bashing it; I’m proud to be here. But it is important to regularly evaluate a product to make sure it matches the needs of the intended audience.

You can tell I’m the business student, can’t you?

7:35 p.m. Gaining other perspectives.

When I was structuring my degree, I chose to major in accounting to explore the inner workings of business on an intimate level and finance to explore it on a broad scope. I’m also minoring in both economics to focus on trends and psychology to understand the humanistic aspect on why people react the way they do to certain things.

Professor [Suzanne] Bergeron’s Economics Development course was an elective for me, but I wanted to take it because she’s got a great reputation as an econ teacher and I want to better understand economic development from across the globe; this class has really pulled all of my academic interests together. It’s really helped me understand how development works, the options available to foster growth and how global economies interact with each other to create policy.

But the most important thing I learned is: You can’t always throw money on a problem to fix it. There are other variables at work when building economies, like the importance of human capital and investing in the institutions that broaden the skillset and knowledge of people. Money is great; but it’s not always the answer.

9:36 p.m. Knowing that family comes first.

Usually I stay on campus after class to study for a bit in the library. But I’ll do that tomorrow. Grandma should still be up and I want to make sure I get to see her on her birthday.

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His goal stays the same — to get the most life experience as possible — but Maloy’s chosen path to success means many location and title changes throughout his typical day.

The Dream Realized

rudmehta — Thu, 18 Aug 2022 18:01:40 +0000

The Dream Realized rudmehta Thu, 08/18/2022 - 14:01

This article was originally published on December 10, 2019.

College of Business Fall 2019 graduate Niko Laput accepted an offer to work as a financial analyst for Microsoft in Seattle. It’s his dream job.

Talking to the charismatic accounting and finance major about his new gig, his frequent spot on the Dean’s List, his four internships — the last one was at Microsoft — and his plans to relocate from his home in Southeast Michigan to Washington, you’d no doubt realize the early 20-something is a go-getter.

But then, while Niko speaks about his many prior-to-graduation job offers, he shares why he initially hesitated in accepting an offer from the Bill Gates-built company — a place, with their innovative blend of tech and business, he’s dreamed to work for since he was a kid.

“I needed to make sure that there were good schools out there for my son first,” Niko says. “Eliot’s almost 4. You could say that we’ve done this college thing together. He's even attended some classes with me when no one could watch him.”

Niko Laput's son Eliot, 3, came to his COB class and chugged choo-choos.

Niko talks about the late nights writing a paper one-handed with a newborn on his chest. He flips through his phone to find a picture of his son last Halloween. Obsessed with ocean creatures, Eliot wore a shark costume from Seattle Aquarium that they bought during a family outing when Niko was at his Microsoft internship last summer. And Niko says his internal drive, fueled by his family, is what keeps him motivated.

“I found out I was going to be a dad right after high school. I knew being a young father would change my life and that getting a degree would be even more challenging. I decided to go to college anyway,” he says. “Of course, I was tired. I sometimes felt like there wasn’t enough time, and I often wondered how I was going to do it. I’ve learned that answer is fairly simple: Prioritize and then go at it one step at a time. You don’t give up on your dream — you bring your family along with you.”

Niko says that there is always a work-life balance — and in his case work-life-school — parents struggle to maintain. But he’s appreciative of his mother and father’s example and models his dedication to family after theirs.

“My parents moved here from the Philippines, where they had an established life, with seven children to give us a shot of getting the best education. My Dad worked in law enforcement and my Mom is a nurse. It was hard, but they knew opportunities are limited in a third-world country. They started over here and are successful in family and career,” he says. “They have shown me that work and drive pays off. I was going to get my degree — it’s for me, for my parents and for my family.”

Niko says college experiences like memberships in student organizations like Beta Alpha Psi, Financial Management Association, Student Government and Community Resources for Empowering Wolverines (CREW) have helped him grow his connections.

Included in that was a COB colleague that shared with him that Microsoft was going to be at a career recruitment fair in Las Vegas. So Laput did door-to-door fundraising to local businesses in his community and pulled together funds of his own to fly out there to introduce himself to Microsoft contacts. It worked. “One of the best investments to make early in your career, is to invest in yourself. It's also important to remember those who did invest in you.” Niko’s in the process of writing thank you notes and update letters to his business community backers.

He says he’s also thankful for the internships with Deloitte, BorgWarner and United Road Services that gave him a strong foundation of finance and logistics experience. And there was everything he learned at Microsoft — he says the mentoring culture just added to his dedication to his new company. When he gets there in January 2020, he’ll continue the work he began during his internship on margin strategy and industry analysis within the cloud computing sector.

With graduation on the horizon, Niko says he’s been reflecting on the past four years. He credits much of his success to supportive family, especially high school girlfriend and soon-to-be wife Liselle. And when their family of three gets to Seattle it will be time for Liselle to pursue her dreams — she’s a pre-med student who will begin applying to medical school. He’s also looking forward to taking Eliot back to Pike’s Place Market, the hiking trails and the aquarium.

But, focusing on now, he’s excited to have Eliot and Liselle with him at graduation on Saturday.

“It’s the end of this chapter for us. We did it — on little sleep and little money, but the dream of wanting something more kept us going. I’m thankful to everyone who supported us and for ��-Dearborn for giving me the education and network needed to reach this next step in our lives.”

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College of Business Fall 2019 graduate balances parenting, school and internships to land a finance position at Microsoft in Seattle.

The stock market may be volatile, but a ��-Dearborn finance expert says don't panic. Here's why.

rudmehta — Mon, 25 Jul 2022 18:01:55 +0000

The stock market may be volatile, but a ��-Dearborn finance expert says don't panic. Here's why. rudmehta Mon, 07/25/2022 - 14:01

This article was originally published on April 6, 2020.

The College of Business Investment Fund Management course is designed to teach investment approaches and analytical techniques. Tasked with managing the assets in the COB investment fund, upper-level ��-Dearborn students work with a faculty adviser to make money by choosing the best stock options.

When the fund saw double-digit percentage gains only months after starting it, Reporter joined the class in mid-February to see how the money magic happens. Advised by Finance Lecturer Nick Vlisides — who spent 30-plus years in corporate finance — the highly engaged finance students debated whether to buy, sell or hold stocks based on three-to-five-year projection analysis. Vlisides, who’s gathering investment materials to create a class library, had students review books from authors like Warren Buffett and Benjamin Graham. Guest speakers in past classes include professors from U-M’s Ross Business School and staff from Bloomberg Professional Services.

It was clear that the portfolio’s strength is tied to Vlisides’ teaching style — he’s affable, encouraging and offers opportunities for different perspectives. He then shows students how to make investment decisions based on prediction models, research and analytical thinking.

But what happens when even the most prepared are faced with uncertainty? Shortly after visiting the class, a then seemingly faroff Coronavirus pandemic found its way here, a bull market turned into a bear market — meaning there was a 20-percent value decline in stocks — and all college courses went virtual to comply with government-imposed social distance orders. We checked in with Vlisides and the class in early April to see how it was going.

“This is not how I pictured the last semester of college,” says senior Vivian Dinh, a finance major. “There’s a global pandemic. We’re stuck in the house. Commencement was canceled. The stock market felt like it was in a free fall. But I’m so glad to be in this class at this time.

“Professor Vlisides keeps providing advice to us about how to view the stock market and how to move forward ourselves. When I look back, that’s what I’ll remember.”

Here are a few lessons Vlisides has shared with the class.

Information needs to come before action.

In a February session, students did their weekly stock updates. Each student had five minutes to talk about what to sell, what to buy and what projection models showed. Everything was doing well (the Dow Jones’ all-time highest closing record happened Feb. 12) and students documented the gains they had. It was all good news, but Vlisides — looking at news reports from the finance lab’s Bloomberg Terminals — told his class, “Let’s keep an eye on what’s happening in Wuhan.”

Students then talked about stocks that would perform well if COVID-19 was as concerning as news outlets were reporting. The class figured their single Amazon share would do well if delivery to homes became essential. When Vlisides noticed that Amazon shares had a price dip in February, the class voted to buy another share of the stock. “If you are working with investments — yours or someone else’s — it’s important to do your research before you act.”

A month later, the stock market is volatile. But Vlisides’ message is consistent.

“Let information be your guide, not fear. If you don’t have a clear picture of what you are looking at, wait until you get the information needed to make a good decision.”

In early April, Dinh said Vlisides is advising the class to continue to monitor their stocks closely, but hold on making changes to the Student-Managed-Investment-Fund. She says it’s been a smart move — since their losses the week of March 16, the fund has already begun to rebound.

We’re all in this together.

Even before the stock market hit historic lows in March, Vlisides cautioned the class that the market was predicted to take a downturn.

“When it does, you need to remember that you aren’t alone,” he said. “When the market is down, everyone feels it — your family, neighbors, even Warren Buffett.”

In March, Vlisides said no one could have predicted the reason for the current financial crisis and how it is unfolding, but he’s confident that all sectors will work together to help correct the market.

“The coronavirus and the impact it’s had is international. Nations are shutting down. It’s affecting every industry. Remember that everyone wants to minimize the impact of this,” he said. “It’s definitely a crisis, but in crisis comes opportunity. If we remember that we are all in this together, maybe this is a point in history we’ll look back and say, ‘that was a time when we did things right.’”

Don’t get stuck in the daily setbacks, instead, look long-term.

During their first online class, Vlisides spent the session charting depressions, recessions and how long the economic recovery took.

Recovery from the Black Monday in 1987 took two years. The 2001 recession was nine months. The late 2000s Great Recession totalled six years.

“Fundamentally, what we are experiencing now isn’t caused by an economic issue, so I’m hopeful that there will be a quicker recovery. This isn’t happening because we are overfinanced or credit-stressed or in a dot-com bubble,” he said. “However, the longer this goes on, the uglier it could look from an economic perspective with business closures (due to social distance orders); I don’t want to diminish that and the impact that has on people’s lives. But it’s important to remember that we’ve come out of every recession we’ve been in. I’m not saying we are in a recession right now. But, when we do find ourselves in one, know that we’ll come out of it.”

When looking at the stock market, Vlisides tells the class to go beyond today’s numbers because portfolios are a long-term investment. “Today’s numbers matter if you are selling today. Otherwise, look to the future — history tells us the market will rebound.”

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"Professor Nick Vlisides keeps providing advice to us about how to view the stock market and how to move forward ourselves. When I look back, that’s what I’ll remember,” says Finance major Vivian Dihn.

Experience that adds up

rudmehta — Mon, 25 Jul 2022 17:48:00 +0000

Experience that adds up rudmehta Mon, 07/25/2022 - 13:48

This article was originally published on April 22, 2020.

Finance major Cady Ericson chose ��-Dearborn because of the strong reputation of the College of Business. But she didn’t realize how far her connections made during this time would take her — until she sat down for a one-on-one conversation with the Chief Financial Officer of the Internal Revenue Service.

Ericson, who spent last summer as an intern with the IRS financial assurance control testing team, says her supervisors were impressed with her drive and asked her if she’d like to meet IRS CFO Ursula Gillis.

“Of course I wanted to meet her. Chief Gillis is a successful female executive in finance. I wanted to learn from her,” Ericson said. “She told me to not be afraid and to take new opportunities as they come. She told me the importance of networks and self development. Chief Gillis also told me to trust my instincts; she took a break from work to raise her daughter, even when people told her it wasn’t a smart idea — but she knew what was right for her and was confident in her ability to re-enter the workforce.

“I learned the importance of being connected, confident and vocal as I move forward in my career from one of the country’s top financial executives. That conversation is something I’ll always carry with me.”

Ericson, who graduates this month, said her talk with Gillis was a definite highlight during her college career.

But she also points to other ��-Dearborn experiences that have helped strengthen her interest in the finance field — like successfully managing the ��-Dearborn College of Business investment portfolio in her FIN 457 course when the S&P 500 went from an all-time high (Feb. 19) to experiencing the biggest one-day drop since 1987 (March 16), and traveling to New York City with the Financial Management Association to meet with finance executives from several Avenue of the Americas-located banks like MUFG Bank and Royal Bank of Canada. They also toured S&P Global and Moody’s Corporation.

“My professors and the people I’ve met have really helped me grow my networks, which leads to opportunities,” said Ericson, who is considering an out-of-state financial analyst position with General Electric post graduation. “My College of Business professors here are experts and great teachers. But it really goes beyond the classroom. They have written letters of recommendation, shared their industry connections with me and more. I wouldn’t be where I am today without them.”

Looking back on college, Ericson balanced work, internships, classes, family and more. And she did it while nearly earning a 4.0. That’s because, in addition to Gillis, Ericson said there’s also another strong financially-focused female finance influence in her life — her mom, who’s a finance manager at Ford Motor Company. And, since she was little, she’s watched her mom juggle work, school and family while balancing her time and money well. Ericson, a middle child of five, said her family taught the kids the value of money through chores, repurposing items and budgeting at a young age.

“My mom is one of my role models. I’ve always liked math and numbers, and — looking at what mom’s accomplished — she encourages me,” Ericson said. “Solving financial problems is about looking at numbers to improve a situation, whether that is for a company, a public organization, yourself or your family. Analyzing data and thinking creatively is key to coming up with the best financial solutions. And I’m ready to get out there and do that.”

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With Cady Ericson's education, connections and experiences — which include an internship with the IRS and managing a College of Business investment portfolio through the stock market's turbulent spring — she says she’s prepared and ready for what’s next.

Regents Roundup, June 2022

stuxbury — Mon, 27 Jun 2022 12:53:20 +0000

Regents Roundup, June 2022 stuxbury Mon, 06/27/2022 - 08:53

The June 16 Board of Regents meeting included the approval of the university budget, personnel actions and campus updates.

Chancellor Domenico Grasso provided the following updates at the public meeting:

News regarding the launch of Destination Dearborn. A program centered on building stronger partnerships with community colleges.
Congratulating Vice Chancellor for Institutional Advancement Casandra Ulbrich on receiving the Michigan American Council on Education 2022 Public Policy Pioneer award. This award is given to Michigan women who advocated the causes of equality, dignity and access as well as encouraged women’s voices in political decision-making.

A complete overview of the university budget, including 2022-23 tuition rates, project investments and merit pool, can be found on our news site.

The Regents approved the following personnel actions:

New appointments and promotions for regular associate and full professor ranks, without tenure.

Xuan Zhou, associate professor of electrical and computer engineering, without

tenure, CECS, effective August 29, 2022.

Reappointments of regular instructional staff and selected academic and administrative staff.

Qiang Zhu, chair, Department of Computer and Information Science, CECS, effective September 1, 2022 through August 31, 2024 (also William E. Stirton Professor, and professor of computer and information science, with tenure).

Joint or additional appointments or transfers of regular associate or full professors and selected academic and administrative staff.

Wencong Su, interim chair, Department of Electrical and Computer Engineering, CECS, effective August 29, 2022 through August 31, 2023 (also associate professor of electrical and computer engineering, with tenure).

New appointments of regular instructional staff.

Brian Boggs, Ph.D., Assistant Professor of Education, CEHHS, August 29, 2022 – April 30, 2023.

Retirement memoirs.

Paul M. Hughes, Ph.D., professor of philosophy, CASL, retired from active status February 28, 2022, following 35 years of service to the university.

Joe H. Lunn, Ph.D., professor of history, CASL, retired from active faculty status on June 30, 2022.

Rashmi Luthra, Ph.D., professor of communications and composition, CASL, retired from active faculty status on April 30, 2022, following 30 years of service to the university.

Dan J. Swift, Ph.D., associate professor of psychology in the Department of Behavioral Sciences, CASL, retired from active faculty status on April 30, 2022.

View the entire Board of Regents’ meeting agenda.

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At the June 16 meeting, the Board of Regents approved ��-Dearborn business, which includes the approval of the new budget, Professor Qiang Zhu’s reappointment as the CECS Computer Information and Science department chair, and retirement memoirs.

Is there a way for businesses to avoid a cash crunch?

stuxbury — Mon, 27 Sep 2021 15:55:26 +0000

Is there a way for businesses to avoid a cash crunch? stuxbury Mon, 09/27/2021 - 11:55

Supply base concentration and supply chain resilience sound like high-level logistics glossary terms — but their effect can be felt on the ground.

If there’s a computer chip shortage, you’ll have to wait for the vehicle you ordered. If stores don’t have enough toilet paper in stock, you can’t buy a household need. And, more important: When you are a business owner, these supply chain terms impact your life in ways that are more than inconvenient — it can lead to bankruptcy or closure.

Seeing how a global pandemic has caused disruption to the supply chain led College of Business professors to ask the question, “What can be done to improve the supply chain process so that it can better weather catastrophic circumstances?”

Mentored by ��-Dearborn College of Business Associate Professor Hung-Chung Su and Assistant Professor Wayne Fu, senior Siddharth Patel explored a potentially helpful financial solution that may ease supply chain strain — the “cash crunch” — for smaller suppliers during campus’ Summer Undergraduate Research Experience (SURE) program.

Talking with the three researchers recently, they explained that suppliers typically send an invoice that companies pay 60 to 120 days after receiving the materials. Companies receiving the products want to pay as late as possible; but the suppliers sending the productswant to get paid sooner than later. That’s typical supply chain practice.

“But when crises like the pandemic or weather-related instances happen, smaller supplies may find themselves in challenging situations and can’t wait for the payment to come 60 or 120 days later. They might be so strained that they are forced to go out of business. If suppliers are forced to close, companies may have trouble fulfilling demand and their sales may decrease. It’s a supply chain problem and an economic problem,” Su said. “There’s a relatively new and underresearched manufacturing finance practice that may be a win-win solution.”

Supply chain finance is when a third-party lender pays the supplier immediately after items are received for a small fee, instead of the supplier needing to wait the standard 60 to 120 days. And, in turn, the company receiving the materials pays the lender the invoice amount in the typical time frame.

Patel, a financial analyst intern for DTE who is majoring in finance and accounting, said learning about how companies handle spending and the financial options available is an interest of his.

“Supply chain finance is a good option for suppliers to look at to avoid feeling the cash crunch,” Patel said. “There’s often tension between suppliers and companies regarding when payment is received. Supply chain finance helps to mitigate the conflict for a small amount.”

Patel said he’s grateful to his COB professors who guided him through four months of research and that the research techniques and tools learned during the project will help him for his future career.

“I now understand how actual research happens and how to conduct it. The SURE program was very well defined and organized, and my professors were helpful and encouraging, which made it a very good learning experience,” Patel said.

Patel’s project on supply chain finance is one area of a larger issue, the professors said. In the future, they will continue exploring supply base concentration and supply chain resilience in their work.

Su said the pandemic exacerbated difficulties with suppliers getting access to raw materials, production facilities having worker shortages and shipping delays. With these in mind, businesses may want to take a step back to evaluate supply-related practices.

Typically, Su explains, companies have ‘just in time’ model inventory, which means you have little to no excess inventory — this is space effective and cost efficient. But maybe a ‘just in case’ model — that’s when you have excess on hand — may be an option for businesses to explore for supply chain resilience and to keep in-demand items in stock.

Fu, who worked in the supply chain management field for more than a decade prior to teaching, said one company practicing a more resilient supply chain model is 3M. With their localized manufacturing and having more surge capacity on hand, they were able to respond to needs quickly during the pandemic and were later recognized as “Supplier of the Year" by Supply Chain Dive.

However, resilience isn’t free — there’s a literal up-front cost. That’s why looking at cash crunch solutions and the feasibility of such options is important.

Professors Fu and Su said an efficient and flexible supply chain is an essential part of business. And they want to help local suppliers and manufacturers evaluate their supply chain practices, answer their questions or just hear from manufacturers or suppliers about challenges they are facing. Both professors said they are looking to work with industry and provide potential solutions.

“Local manufacturers are fighting to stay afloat. As part of this community, we want to bring our perspective and resources to help companies develop solutions,” Su said. “We are here, ready to listen and ready to help.”

If you are a business owner who would like to talk with the College of Business about your supply chain process, please contact Wayne Fu or Hung-Chung Su.

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Mon, 09/27/2021 - 15:54

College of Business professors Wayne Fu and Hung-Chung Su want to improve the supply chain process so that it can better weather catastrophic circumstances. The faculty mentored COB senior Siddharth Patel in researching one potential financial solution fo

Graphic showing COB Assistant Professor Wayne Fu, senior Siddhearth Patel and Associate Professor Hung-Chung Su

Cryptocurrency: Should you invest?

stuxbury — Mon, 07 Jun 2021 20:36:36 +0000

Cryptocurrency: Should you invest? stuxbury Mon, 06/07/2021 - 16:36

Many wonder if cryptocurrency is a bubble waiting to burst or a legit form of currency here to stay. And, while we sort that out, should our investment portfolios include digital currency?

With cryptocurrencies taking center stage in financial world news, Finance Professor Vivek Singh weighs in.

Vivek Singh, College of Business

Singh has a history of questioning financial investment trends — his research in the late 1990s focused on the dot-com bubble (before it had a name). He hypothesized that major financial institutions were driving up the price, which was an unpopular theory at the time. Most financial researchers believed the price surge came from the ignorance of the average retail investor. “When the bubble burst in 2002, I was able to prove what I was theorizing in real time.”

Bitcoin has been around for more than a decade — news continues to report mostly favorably on cryptos despite a recent dip. And a Financial Planning Association report released June 1 reveals that more financial advisers are recommending their clients have cryptocurrency in their portfolios.

So what’s an investor to do? Here’s what the ��-Dearborn financial expert (and sometimes skeptic) has to say about cryptocurrency.

First, a quick description of cryptocurrency.

Singh: “It’s a currency created by a secure network of computers using cryptography, making it so the currency is nearly impossible to counterfeit. A feature of cryptocurrency is that there isn’t one institution responsible for it, so it’s decentralized and exists outside of the control of government and central authorities.

In contrast, fiat currency — like the American dollar or the Euro — is government issued and managed by centralized banks. Bitcoin launched in 2009, and many others (Ethereum, Litecoin, Cardano, etc.) have since followed. You don’t physically own cryptocurrency. For example, a Bitcoin balance is kept on a ledger and stored on the Bitcoin network. Users can track their own Bitcoin activity by addresses created privately by each user’s virtual wallet."

Singh doesn’t get into the different types of cryptos available, but you can read more about that here.

Yes, you should include cryptocurrency in your investment portfolio — conservatively.

Singh: “Economist Charles Kindleberger has a quote: ‘There is nothing so disturbing to one's well being and judgment as seeing a friend get rich.’ This leads some people to FOMO (fear of missing out). We’ve all heard stories about average people becoming millionaires off of Bitcoin they bought years ago. Maybe you even know someone. I think that’s a factor in what’s causing this surge in cryptocurrency interest. It has been aggravated by almost zero yield on bonds and related asset classes, easy access to online trading in cryptos, and perhaps people working from home with lots of time to play around with some free money (stimulus checks).

So what’s a rational approach to something that feels like it could be a bubble? Don’t expect to get rich quick — realize that what goes up like a rocket, comes down like a stick too. But also don’t entirely dismiss a risky asset like cryptocurrency. I need to be honest. Like many finance researchers, I am skeptical about the viability of cryptocurrency. But I also know that cryptos deserve some investment attention with the cryptocurrency market cap now exceeding $1.5 trillion. It is almost the same size as junks bonds, where even smart institutional investors invest despite the gargantuan risks.

My advice? Despite a neutral position on Crypto, portfolio theory demands that we put a very small amount in this proportional to its size in the investable universe.Talk to your financial adviser about investing a small chunk of money in cryptocurrency — 1 to 2% of your investment portfolio, realizing that 2% may be a bit on the speculative side — for hedging purposes and to have diversification of risk. Fixed income assets like treasuries and bonds offer almost next to nothing as a return. Your highest risk assets, like cryptocurrencies, are where the money is when you get it right."

Cryptocurrency may have value in your portfolio. But you aren’t going to be able to directly use it for major purchases, like buying a house, anytime soon.

Singh: “The cryptocurrency market soars and falls too quickly for it to be used in major consumer transactions — it’s too volatile. Since we make money in dollars, there is no natural hedge either. Imagine taking a home loan in Bitcoin and making money in dollars. If Bitcoin soared in value your mortgage loan would be astronomical. Under the circumstances, would you take a loan in bitcoin? On the reverse, bankers would think twice about loaning in a currency that might tank.

It has gone up and down by 20% within an hour on many days. In day-to-day dealings, by the time a transaction processes cryptocurrency to dollars and it’s settled, no one knows what the converted amount will be.

A lender or seller doesn’t want to accept a form of payment that may crash by the time they get it — too risky. And, if it rockets in value during that time, buyers give more than they agreed the item was worth. Given the current technological bottlenecks underlying cryptos, transactions may take a long time to go through with significant fees too.

Outside of the mostly irrational demand that created the more recent spikes in price, the value in cryptocurrency is really in its potential long-term use. However, we aren’t going to know it’s true value for years.

In a decade or so, we’ll have a better idea. By that time, if still around, cryptos values should be stabilized and financial institutions may see it as a valid unit of currency. But that would happen only if cryptos can overcome the significant regulatory headwinds, competition from central banks with their own digital currencies, its current technological limitations (that are deflationary by design),and undesirable environmental impact.”

Even if cryptocurrency is only a trend, the technology behind it is here to stay.

Singh: “The technology that cryptocurrency operates on, called blockchain, has a lot of potential. People are already using it and it is on the cusp of adoption worldwide. (Here’s how blockchain and cryptocurrencies like Bitcoin are connected: Cryptocurrency is mined by computers verifying the blocks that make up the blockchain — when validated, the cryptocurrency is created. It’s like the reward for getting it right.)

The data contained within the blockchain is immutable, meaning once it’s written it cannot be edited or changed. The blockchain technology can authenticate trades or financial transactions so people get what’s promised. Smart contracts — which are like any financial contracts but exist on the blockchain — can remove unnecessary paperwork and human error, and increase efficiency.

In addition to security, the appeal of blockchain is that it runs on a peer-to-peer system of computers that hold and verify the information. The system is maintained by people like you and me. This essentially eliminates the cost of a middleman, resulting in financial transaction fees that are far lower than what big exchanges or banks charge. The benefit of transactions costing less is that it can lead to more economic activity for everyone.

Blockchain is a transformative technology that will change the way we do things. Even if the cryptocurrency bubble bursts, blockchain technology is here to stay.”

Interview by Sarah Tuxbury. If you are a member of the media and would like to speak with Professor Vivek Singh about this topic, please contact ��Dearborn-news@umich.edu.

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Mon, 06/07/2021 - 20:34

What’s an investor to do? Here’s what ��-Dearborn finance expert (and sometimes skeptic) Vivek Singh has to say about cryptocurrency.

$4+ trillion in COVID packages: Can we really afford it?

stuxbury — Sun, 04 Apr 2021 13:16:02 +0000

$4+ trillion in COVID packages: Can we really afford it? stuxbury Sun, 04/04/2021 - 09:16

COVID stimulus packages, economy

In the past year, Congress has passed more than $4 trillion in spending to respond to the coronavirus pandemic and its economic effects. While the American people and businesses benefit from many of the supported initiatives — like vaccine development, aid for small businesses and direct stimulus payments — you can’t help but feel a bit of uncertainty when looking at a number that’s followed by the word trillion.

“My students want to know: Who is going to pay for this?” said COB Lecturer Mercedes Miranda, who has a Ph.D. in Financial Economics and teaches ��-Dearborn graduate-level business economics and finance courses. “Future generations will. But they will likely benefit in the long-term too.”

COB Lecturer Mercedes Miranda

Miranda, who gives her business students tools for understanding the operation of the economy as a whole, said taxpayers today pay for the stimulus packages from the 2008 recession. And those packages brought needed relief and — having the benefit of hindsight — an improved economic situation that outweighed the costs. So it’s all about the return on investment.

Looking at the newer stimulus and relief packages — the CARES Act, the Pandemic Relief Bill and the American Rescue Plan Act — Miranda relies on economics research, history and her financial expertise to put the debt into perspective and share what the long-term economic effects may be.

Q: At an estimated 10.3% of gross domestic product (GDP), the deficit in 2021 would be the second largest since 1945. Should we be concerned about our economy running such a large deficit?

Mercedes Miranda: A large amount of debt is concerning. But you also need to put it into perspective. A lot of folks think of the trillions of dollars of debt, but do not think of what that debt actually looks like. Typically, people's home debt is about 300% their yearly salary. The U.S. debt to GDP ratio is around 100% indicating the U.S. income is around the same as our current debt.

There is a new line of thinking that is to not worry about debt levels or a balanced budget. Former Treasury Secretary Lawrence Summers and Jason Furman of Harvard claim that debt-to-GDP ratios are not the correct metric of fiscal sustainability. These ratios do not account for the fact that both the present value of GDP has increased, and debt service costs have decreased as interest rates have fallen.As a matter of fact, interest rates are lower than the nominal growth rate of the economy (before adjusting for inflation). In this scenario, debt will continue to shrink as a share of GDP over time. The common belief is that budgets must be balanced in the long run. However, if the U.S.economy grows at a faster rate than interest builds up, the government could run a small deficit forever.

Q: But what about the burden to future generations?

MM: Future generations will likely benefit too because government fiscal stimulus lowers the risk of a longer more painful recession and long-term scarring of the economy later on. One thing we want to avoid is sustained periods of slow growth which increase the risk of future recessions and depressed economies. The Biden administration’s “act big” rationale with the recent $1.9 trillion bill comes from the evidence from the post-2008 period.

I should add that the U.S. isn’t worried about being able to finance more deficit spending because investor appetite for Treasury debt remains strong. In our current economy, the U.S. government can borrow at very low interest rates by historical standards. Interest rates are not expected to rebound any time soon and the risk of inflation remains in the lower side, so taking action now makes sense.

Q: What’s the evidence from the post-2008 period to “act big”?

MM: Prior to the pandemic, the latest stimulus was during the recession of 2008-2009. In the last quarter of 2008, the American economy contracted by a shocking 8.9%. By early 2009, job losses hit 800,000 a month. Then President Obama signed the American Recovery and Reinvestment Act (ARRA) in February 2009. There’s widespread agreement among economists that this stimulus act helped boost the economy.

But, with the benefit of hindsight, many economists now believe that the Obama Reinvestment Act would have stimulated more economic growth if the Reinvestment Act stimulus package had been much bigger. Even 10 years after the 2008 financial crisis, the U.S. economy did not return to the pre-crisis output levels. One lesson learned is that the U.S. has a greater room for economic growth and higher employment rates without worrying about inflation. In the long run, we must go beyond emergency efforts to stimulate economic recovery. That is why infrastructure spending, especially with a focus on “green” and competitive jobs, must be a high priority.

Q: These recent measures have definitely been bigger. It may be too soon to tell, but have they been effective?

MM: In the last year alone, massive fiscal support has proved remarkably effective. Starting with the Coronavirus Aid Relief and Economic Security (CARES) Act in March 2020. This $1.8 trillion economic stimulus bill was passed by Congress and signed into law by President Trump to limit the economic impact of the COVID-19 pandemic to support American families, workers and businesses. In a study of its economic impact, the authors find that programs under the CARES Act succeeded in mitigating economic losses in welfare by around 20% on average.

A more recent study by the Brookings Institute estimates that President Biden’s $1.9 trillion package would boost economic activity. They project an increase in real gross domestic product (GDP) of 4% at the end of 2021. GDP would reach the Congressional Budget Office’s pre-pandemic GDP projection after the third quarter of 2021, exceeding it by 1% in the fourth quarter. Without Biden’s recent stimulus package, the GDP would remain below the pre-pandemic level for the next several years because additional federal resources are needed to distribute vaccines and combat any potential resurgence of the pandemic.

U.S. Treasury Secretary Janet Yellen reassured us that the $1.9 trillion package could bring the economy back to full employment before the end of 2021. Just in the month of March, the US added 916,000 new jobs, increasing hopes that vaccinations and reopening of businesses are giving the economic recovery a firmer grip. However, we still have a long way to go. There were roughly 8.4 million fewer jobs in March 2021 than a year ago. The unemployment rate last month was still 6% compared to 3.5% a year ago (Feb. 2020).

Q: Earlier you mentioned that inflation remains on the lower side. But with any big spend, isn’t there a risk of rising inflation?

MM: As we all know, inflation decreases people's ability to pay for goods. My favorite definition of inflation is too much money chasing too few goods. At the moment, there are no signs of significant inflation. Some may point to the housing market, but Federal Reserve Chairman Jerome Powell said he sees the rising home prices as a temporary reaction to the COVID-19 crisis, with people switching residences to adapt.

The Fed expects some consumer price inflation for goods like cars and clothing and services like haircuts and hospital care to pick up in the months ahead, though they don’t expect that will be lasting. The Federal Reserve seeks “inflation moderately above 2% for some time” before it will consider raising interest rates, which would slow inflationary pressures if needed.

It’s also important to know that a mild level of inflation is good because it motivates consumers to buy now rather than wait and pay more later. As a result, it increases demand in the short term. Businesses sell more and factories produce more and are more likely to hire new workers to meet demand. It creates a snowball effect, boosting economic growth.

Q: So there have been short-term pros like unemployment recovery, safety nets for the less fortunate and boosted economic activity. What long-term effects may these bills have?

MM: So far, the economy has followed a K-shaped recovery, which shows a portion of the population and businesses recovering quickly and fully, while another suffers a great deal. Low-wage workers experienced much larger job losses that persist today aggravating long-standing socio-economic disparities in living standards. The packages, especially the most recent one, looked at ways to reduce these disparities.

This government assistance could lead to a possible long-term effect: Temporary expansion of government power tends to become permanent. The government may plan to boost spending only for a short period (during the crisis). But then prospects change, making such expansionism difficult to undo. I don’t see a problem with the size of government in the long run — as long as resources are used in an efficient way like shifting the spending to areas that create the most jobs.

Economist Mariana Mazzucato presents a challenge to the dominant understanding of government's role in the U.S. economy: "Not only has government funded the riskiest research, whether applied or basic, but it has indeed often been the source of the most radical, pathbreaking types of innovation. To this extent it has actively created markets, not just fixed them.” In the book “Mission Economy” she argues that by deploying the power of the state in practical ways, societies can become more prosperous and equitable. These relief and stimulus packages may have created an avenue for this to happen.

Interview by Sarah Tuxbury. If you’re a member of the media and would like to speak with COB Faculty Mercedes Miranda about this topic, please drop us a line at ��Dearborn-News@umich.edu.

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Sun, 04/04/2021 - 13:11

Looking at the federal government’s recent stimulus and relief packages, COB Faculty member Mercedes Miranda relies on economics research, history and her financial expertise to put the debt into perspective and share what the long-term economic effects m

When it comes to the stock market, is there a difference between a Wall Street bet and an investment?

stuxbury — Wed, 03 Feb 2021 22:52:38 +0000

When it comes to the stock market, is there a difference between a Wall Street bet and an investment? stuxbury Wed, 02/03/2021 - 17:52

Photo showing phone apps like Reddit, stocks and more

Many of us are following how a group of retail investors bought stock that halted trades on some brokerage firms, may bankrupt a hedge fund, and got Wall Street’s attention.

In case you missed it, here’s a quick overview: Members of the Reddit group Wall Street Bets decided to go all in when they saw that Gamestop stocks were shorted — which is borrowing a stock, selling it, and betting you can buy it again at a lower price to make money before you have to return it — by 140 percent thanks to the hedge fund Melvin Capital. The Internet reacted with memes. It dominated business news everywhere. But it’s more than a headline: It’s a serious disruption to the market.

The finance world is watching this unfold. And there are many questions that everyone is asking — from the average person to the U.S. Securities and Exchange Commission (SEC).

With decades of experience in corporate finance and treasury, Finance Lecturer Nick Vlisides, who teaches ��-Dearborn’s Investment Fund Management course, weighs in on what this says about hedge funds, buyer behavior and the stock market.

Q: Some people are viewing this as the small-time investor taking on corporate America — and winning. Do you agree?

Photo of COB Lecturer Nick Vlisides

Nick Vlisides: I understand where this is coming from. Hedge funds can be very large and have a great deal of capital to help protect and insulate them from market volatility. And there is something almost mythological about a small group of individual investors banding together to take on or oppose a hedge fund position.

Jack Bogle, who founded the Vanguard Group nearly 50 years ago, is said to have begun the process of “democratizing” markets by allowing smaller investors to pool funds and leverage their combined resources to influence market positions. There have been several studies that also advance the notion that the markets have over the past several decades become more influenced by the large corporate and professional investment firms. The principle that everyone should be allowed to make investments and not be controlled by a few investment houses is appealing, but has limits. Making positive returns on investments takes a great deal of research and analysis.

Q: Are you saying that it’s more than ‘playing’ the stock market?

Buying and selling stocks is not like betting on the “red” or “black” square at the local casino’s roulette wheel. Our world is becoming increasingly complex and rigorous impartial analysis is critical in making investment decisions.

Q: But a hedge fund was essentially making a bet that companies (GameStop, AMC) were going to underperform/file for bankruptcy. The r/WallStreetBets amateur investors saw this and acted on it. Does this shed a negative light on how hedge fund managers do business?

Vlisides: Hedge fund managers make decisions based on financial analysis looking at earnings, sales trends, cash flows, etc. — that’s what’s termed fundamental analyses. These analysts pour over earnings and financial reports. They examine past trends, look at the strength of management and make educated predictions of how a company will fare over the investment cycle. For instance, GM just announced that they will be going all electric by 2035. Hedge fund managers then evaluate: Can they do it? Do they have the management team in-place that can move the company in that direction? Do they have the capital? What are the forecasted demands for electric vehicles and particularly their products? Because of the level of analysis and the size of the funds they have access to, it can be true that the large hedge funds have weight and they influence certain stocks by buying and selling them.

More often than not, the investment community is honest and works hard for their clients. Mutual funds are built to assist investors to save funds for retirement, education and so forth. Hedge funds can take on a higher risk approach. They are sometimes required by their investment policies to make returns greater than market indexes and/or to make positive returns when the markets fall. They do this by buying commodities such as gold, oil, livestock, currencies and by shorting stocks.

Q: Another interesting angle to this story: Some brokerage firms, like Robinhood, stopped people from buying more stocks for Gamestop, AMC and others. Is restricting a free market legal?

Vlisides: As investors buy/sell stocks, cash must be moved from one bank account to another bank account and that takes time. It takes two days to have funds “clear” markets (through the Depository Trust & Clearing Corporation) and to complete investment transactions. During those two days, brokerage firms and hedge funds must cover those positions with their own funds which can reach into the billions of dollars. Robinhood did not have the funds to cover or withstand the billions of dollars required for the two-day clearing period and was forced to shut-down trading in certain stocks. This rule is required for all such firms and brokerages. It is important for brokerage firms to know their clients and to ensure that they have the capital to cover that clearing period. Robinhood was at fault for not being upfront with its clients. It appears that they were caught off-guard and did not explain their position until after they closed trading in these stocks. They could have, and should have, been more transparent about their actions, this may have helped to avoid the negative response to their temporary trading restrictions.

Q, A major plus to social networking is how easily information is shared: But did that serve people well in this situation? Are there potential downside impacts to social-network buying trends?

Vlisides: Laws and regulations are in place that restrict hedge funds and other investment firms from collusion and there are stiff penalties for violations. Some people are making the argument that this social platform activity is a form of collusion that was not anticipated by regulators. It’s not clear what can be done, but these recent actions have an impact on the concept of free and fair trade in the equity markets.

The second concern is the arbitrary and capricious nature of the investment targets. Why support Gamestop, but not Thunderful? Why AMC, but not The Cineplex Group? Or, more recently, why silver, but not copper? These actions are based on an arbitrary choice of what appears to be a few individuals serving as a catalyst to others who follow — not based on disciplined research and analysis.

On the one hand, it is interesting to witness how the actions of individuals can collectively impact certain targeted securities while conversely negatively impacting parts of the professional investment community. Overall, shocks to the markets can be therapeutic providing a renewed focus on investment firms methods of valuation.

Q: People are paying attention to topics (stock shorts, hedge fund operations, etc.) that aren’t typically mainstream. That’s a good thing, right?

Vlisides: It is always a good thing for people to learn more about the financial markets. Investing funds into stocks and other securities requires research and study. We are definitely talking about this in class — it’s important for our students to learn the intricate and sometimes delicate workings of the financial markets. While it is interesting to observe and learn about the behavioral effects of a collective flash surge in trading activity, it’s also important to note that nothing can replace hard work and study when it comes to making investment decisions.

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Wed, 02/03/2021 - 22:49

Finance Lecturer Nick Vlisides, who teaches ��-Dearborn’s Investment Fund Management course, weighs in on the r/WallStreetBets story and what it says about hedge funds, buyer behavior and the stock market.

Accounting and Finance

Faculty Fulbrights bring international partnerships to Dearborn Wolverines

Mercedes Miranda, Egypt

Kristian Stewart, Indonesia

College of Business student Adrian Maloy juggles many roles to capitalize on the college experience

8:21 a.m. Remembering the important things at Westborn Market.

8:45 a.m. Looking for the positive during hectic times.

10:07 a.m. Creating a better process, developing new skills.

4:10 p.m. Helping others figure out this college thing.

5:43 p.m. Giving ideas during a transformational time.

7:35 p.m. Gaining other perspectives.

9:36 p.m. Knowing that family comes first.

The Dream Realized

The stock market may be volatile, but a ������-Dearborn finance expert says don't panic. Here's why.

Information needs to come before action.

We’re all in this together.

Don’t get stuck in the daily setbacks, instead, look long-term.

Experience that adds up

Regents Roundup, June 2022

Is there a way for businesses to avoid a cash crunch?

Cryptocurrency: Should you invest?

First, a quick description of cryptocurrency.

Yes, you should include cryptocurrency in your investment portfolio — conservatively.

Cryptocurrency may have value in your portfolio. But you aren’t going to be able to directly use it for major purchases, like buying a house, anytime soon.

Even if cryptocurrency is only a trend, the technology behind it is here to stay.

$4+ trillion in COVID packages: Can we really afford it?

Q: At an estimated 10.3% of gross domestic product (GDP), the deficit in 2021 would be the second largest since 1945. Should we be concerned about our economy running such a large deficit?

Q: But what about the burden to future generations?

Q: What’s the evidence from the post-2008 period to “act big”?

Q: These recent measures have definitely been bigger. It may be too soon to tell, but have they been effective?

Q: Earlier you mentioned that inflation remains on the lower side. But with any big spend, isn’t there a risk of rising inflation?

Q: So there have been short-term pros like unemployment recovery, safety nets for the less fortunate and boosted economic activity. What long-term effects may these bills have?

When it comes to the stock market, is there a difference between a Wall Street bet and an investment?

Q: Some people are viewing this as the small-time investor taking on corporate America — and winning. Do you agree?

Q: Are you saying that it’s more than ‘playing’ the stock market?

Q: But a hedge fund was essentially making a bet that companies (GameStop, AMC) were going to underperform/file for bankruptcy. The r/WallStreetBets amateur investors saw this and acted on it. Does this shed a negative light on how hedge fund managers do business?

Q: Another interesting angle to this story: Some brokerage firms, like Robinhood, stopped people from buying more stocks for Gamestop, AMC and others. Is restricting a free market legal?

Q, A major plus to social networking is how easily information is shared: But did that serve people well in this situation? Are there potential downside impacts to social-network buying trends?

Q: People are paying attention to topics (stock shorts, hedge fund operations, etc.) that aren’t typically mainstream. That’s a good thing, right?

The stock market may be volatile, but a ��-Dearborn finance expert says don't panic. Here's why.