Download IMIFC Newsletter What happened in the competition this week?

February 1st , 2016
IMIFC Newsletter
Vol. I Issue 9
Current Leaderboard
- TOP 15 YTD
1.timothysamir
35.13%
2.OmarAliOsman
17.50%
3.tadrosre
16.96%
4.huangy93
15.64%
5.kimjon26
10.29%
6.mAsad
9.14%
7.gosalcha
4.58%
8.chunguye
4.02%
9.rafayaman
3.38%
10.Sadaanan
2.93%
11.LisaSu
2.21%
12.zhaoyu31
2.00%
13.NFatima
1.08%
14.ApporvaDaneva123 0.93%
15.howegors
0.90%
Remember, there will be
numerous prizes awarded for
participants, ranging from
most risky trader to most
diversified portfolio. So even
if you don’t place in the top
20, there’s still a chance you
will get an award!
What happened in the competition this week?
By Arooj Shakeel, SMA
Trade of the week
Trader tadrosre bought 250 shares of Facebook Inc, (NASDAQ: FB) at $108/share with an expected upside of 10% over
a 3-month horizon.
Facebook has performed well across all metrics during the quarter, leading to easy beats on the top and bottom line. A
mature Instagram business will bring in more than $5 billion in annual revenue, and affirm that Instagram should continue to drive growth in 2016. The continued 5%+ Y/Y MAU (Monthly Average Users) growth in the US and Canada shows
that Facebook's popularity domestically is being assisted by Twitter weakness. The other driving force of higher average
revenue per user will be video ads, as Facebook continues to focus on feeding videos to its users, which I see as an attempt
to take away video advertising market share from YouTube.
With market-changing catalysts on the horizon, Facebook growth story is far from over. In addition, when looking at
cash flow multiples, we can see that FB is actually trading at a discount to its growth.
I think growth investors will greatly benefit by buying Facebook at these levels.
By: Anwar Khan, UFA
IMIFC Newsletter
Page 2
What happened in the markets this week?
Macroperspective
Switzerland is the first country in the
world to vote on having a national wage
of £1,700
entitled to this level of income. The
proposal itself arose from a survey
Switzerland is set to vote on a proposal carried out by Demoscope Institute,
that will result in every citizen receiving which reportedly showed that the
£1700 regardless of whether or not they majority of Swiss residents would
work. If successful, Switzerland would still continue to work and/or look for
become the first country in the world to jobs with this unconditional income.
provide a basic unconditional monthly Around 10% of people were open to
income to their citizens, and they’re
the idea of not working anymore
already the first to ever vote on the
with this income, but generally the
matter. The rationale behind this pro- committee said that this guaranteed
posal is to break the link between emincome wouldn’t reduce the incenployment and income, people will no
tive of people to work. The plan
longer be required to work in order to
would cost
receive money and everyone will be
the government around £143 billion to implement, and it
is currently unclear how far discussions will go with this
topic but 56% of those surveyed said that the proposal
will “never see the light of day”. The idea itself may not
be proposed any time soon by Switzerland, but along with
interesting economic impacts, this situation brings an
interesting philosophical perspective to be considered. If a
population receives unconditional income, will this additional purposeless free time make society more productive,
or less productive? Perhaps we will never know, but it is
interesting to consider regardless.
By: Brandon Black, UEC
Microperspective
Canadian Economy Sees November Growth,
But Half of Industries Have Shrunk

Goods-producing industries down
2.5% but service sector up 1.4%, led
by arts, entertainment, and recreation
On par with economists’ expectations, Sta(up 3.4%)
tistics Canada reported Friday that Canada’s  Entertainment and recreation up
economy expanded by 0.3% in November.
3.4%
Canada’s economy has not seen growth in a
 Transportation and warehousing
year and was almost the same size in Novemup 2.3%
ber 2015 as it was in November 2014. How
Real estate, rental, and leasing up
ever, 9 out of 20 sectors tracked by StatsCan
3.2%
have shrunk over the past year despite economic growth. As most would expect, minThis marks a comeback in November
ing, oil, and gas took the biggest hit:
for many industries that had been
seeing negative growth patterns:
 Mining, oil, and gas down 6.4%
 Construction down 3.6%
 Wholesale trade up 1.3% after
shrinking for four months straight
 Manufacturing down 1.1%
 Retail trade up 1.2% after being
 Utilities down 2.8%
down 0.2% in October
Our GDP gains in November are primarily
 Manufacturing up 0.4% after
attributable to retail and wholesale trade,
being down for two months straight
energy extraction, and manufacturing. Economists have pointed out that Canada is mov- Natural resource extraction (up 0.6%)
ing toward a service-oriented economy:
and oil and gas extraction (up 2.1%)
helped offset the 2.3% decline in min-
ing and quarrying in November. Further downward pressure on GDP was given by the finance
and insurance sector, down 0.3% in November as
its fourth month in decline.
Expected Outlook of Financial Markets
Earlier this month, the central bank decreased its
GDP expectations for Q1 of 2016 to 0.8%, so investors may want to be mindful of this less optimistic forecast. Despite the possibility of increasing sentiment because of negative growth reversal
in some industries, consider retail seasonality as
the sector usually sees Q1 contractions. Furthermore, the Wall Street Journal reported Friday that
crude oil rose to a three-week high globally, and its
potential role in economic stimulation is being met
with caution considering its long struggle with low
prices. As prices surged nearly 8% to $35 a barrel,
investors will want to be wary of market volatility
that can be introduced as a result of high sentiment. Indeed, Todd Gross, the chief investment
officer at QERI LLC, warns that oil rumors can
move the market by as much as 15% and warns to
proceed with caution.
This Week’s Economic Calendar
MON
: [01]
TUES:
[02]
WED:
[03]
THURS:
By: Helen Phothisat, UCS
[04]
FRI:
[05]
Mitsubishi UFJ Financial Group
Quarterly earnings
Chipotle Mexican
Grill, Inc. (CMG)
Quarterly earnings
Energizer Holdings, Inc.
(EPC)
Quarterly earnings
LinkedIn Corporation
(LNKD)
Quarterly earnings
AMTEK, Inc. (AME)
Quarterly earnings
Construction Spending
10:00AM
Michael Kors Holdings Limited (KORS)
Quarterly earnings
General motors
Company (GM)
Quarterly earnings
Factory Orders
10:00AM
Treasury STRIPS
3:00PM
PMI Manufacturing
Index
9:45AM
Yahoo! Inc. (YHOO)
Quarterly earnings
Bloomberg Consumer Comfort Index
9:45AM