GMS students compete in stock market simulator competition

Monday, May 17, 2021
The stock market simulator winners in Brittany Labhart’s eighth-period business class (left) at Greencastle Middle School are (from left) Kyra Bandy, Ashlynn Pearson and Taygan McRoberts. Meanwhile, the ninth-period winners are Brayden Monroe, Cameron Pingleton and Benjamin Lamon.
Courtesy photos

Brittany Labhart’s eighth- and ninth-period Greencastle Middle School business classes have been participating in the Indiana Council for Economic Education’s $mart Indiana stock market simulator activity during the past 10 weeks. This program was an excellent example of a 4-H activity in school enrichment to build life skills in youth.

On March 5, students were given a virtual account of $100,000 where they could begin to make stock trades if they chose to do so. While mutual funds and bonds were not available for purchase, these types of funds were also discussed. During the 10-week period the class monitored Tesla (TSLA) by discussing it each week.

Mark Evans

About halfway through the program, the rankings and potential returns of the top 10 or more students between the two periods were shared between the classes and the top student portfolios analyzed to discuss their successes.

Students were able to observe a variety of conditions during the 10 weeks as markets did hit all-time highs prior to a modest sell-off that occurred during the past week. At one point three weeks ago, the top three students were all above 10 percent returns while only one student was in a losing portfolio position. At the last session, there were 14 students with losing positions, though only two were at serious losing of positions at or approaching double-digit losses. The downturn of the past week gave the students the reality that conditions can move toward the negative side and provided the opportunity for discussion about improving cost basis through dollar-cost averaging.

Students learned about ticker symbols, risk management, diversification, dividends, capital gains, sectors and the grid of capitalization with value-to-growth foci. Many do not understand that placing funds in an account that pays an interest rate of 0.05 percent when inflation runs three percent per year results in a loss of buying power of 2.95 percent each year.

The goal of the program is to help students learn to save and to grow savings wisely through being successful investors. Too many are scared of investments due to lack of knowledge. This program gives students knowledge through hands-on skill development to become more powerful investors.

Future goals include developing a youth investment club that would actually manage real fund dollars.

The top three students in both the eighth- and ninth-period business classes received a $5 Scoops Ice Cream gift card. Placing first through third in the eighth period were Kyra Bandy, Ashlynn Pearson and Taygan McRoberts, while first through third in the ninth period were Brayden Monroe, Cameron Pingleton and Benjamin Lamon.

Visit www.extension.purdue.edu/putnam or contact the local Extension office at 653-8411 for more information regarding this week’s column topic or to RSVP for upcoming events. Office hours are Monday through Friday from 8 a.m.-noon and 1-4 p.m. Evening and lunch appointments are available upon request.

Upcoming Events

May 17 – Beware! Toxic Plants Are Out, virtual, noon, register at https://tinyurl.com/WIAWebinars21

May 18 – Walking group, 9 a.m., Big Walnut Sports Park

May 24 – ServSafe Food Managers online exam, 9 a.m., register at https://purdue.edu/servsafe/workshops

May 25 – Walking group, 9 a.m., Big Walnut Sports Park

May 31 – Extension Office closed in observance of Memorial Day

June 2 – Cake decorating 4-H workshop, Putnam County Fairgrounds, Harris Hall, 5-6:30 p.m.

June 3 – Electricity 4-H workshop (see 4honline email forthcoming for details)

June 3 – Crochet 4-H workshop, Extension Office, 6-7 p.m.

June 7 – Dairy: Good for the Gut! Remember Food Safety!, virtual on Zoom, noon, register at https://tinyurl.com/WIAWebinars21

June 8 – Knitting 4-H workshop, Extension Office, 6-7 p.m.

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