Dean Johnson, Associate Professor of Finance in the School of Business and Economics, and students in the Applied Portfolio Management Program (APMP) were featured on TV6 news regarding investment practices during and after an economic recession.
Business students at Michigan Tech are learning about the ups and downs of the stock market firsthand as they manage a million dollars of endowment money this year.
The most important lesson Professor Dean Johnson has taught them is also one that applies to investors currently in or considering reentering the market.
“It’s all about the asset percentage you can tolerate,” said Johnson. “The person that missed out the most is one who invested too much, more than they could tolerate, sold at the bottom and missed out on the gain.”
Despite the recent rebound, Johnson says it could still be a good time to reinvest your money.
“If you wait until the economy fully recovers…it’s too late,” Johnson said. “The bottom line is that the market is a leading indicator of the economy.”