Canning Earns Stock Market Trophy

Mr. Loomis shaking hands with Olivia CanningChatham High School’s Fall 2020 Stock Market Game wrapped up recently with sophomore Alivia Canning as the winner. Her overall return on investment was 8.7% – in just five weeks!

In Financial Literacy classes each semester, students learn about investing through a virtual simulation. Each student is allocated $100,000 to invest in the market as they choose. Each student is required to spend at least $80,000 of their money and they must purchase a minimum of five different stocks or mutual funds. Business teacher Mike Loomis, who teaches the course, said, “I encourage them to diversify their portfolio so that if one stock decreases in value, they do not lose it all. I also encourage them to invest in companies they believe in and know something about. It can be risky to pick an investment without doing any research.”

Alivia’s investment choices included Apple, Macy’s, and McDonald’s. Apple’s stock increased by 15.75% over the five-week time frame of the game. Her Macy’s stock went up 9.7% and McDonald’s 6.4%. “Alivia had a passive approach in the contest, choosing her stocks in the beginning and letting them grow,” said Loomis. “This is a great long term approach. This game can sometimes be won by those who gamble by day trading and investing in more risky items. That method is a narrow, short-term approach and is not recommended. Alivia chose well and made a good choice by letting it continue to grow.”

Others who did well in the game including the second place finisher, junior Nadia Brooks, who earned 5.43% and third place finisher, junior Craig Coons, with 3.98%. They each also included Apple in their portfolios, while Nadia supplemented hers with Amazon (up 7.5%) and Craig had EA Sports (6.7% increase.)

Each semester, the winner of the stock market simulation gets a cut-out trophy, a copy of which is added to the trophy display in the Financial Literacy classroom.

ABOUT FINANCIAL LITERACY:

Financial Literacy is a half-credit class where students learn to manage their money habits, utilize a spending plan, manage checking accounts, and learn about building wealth through investing. They learn about the dangers of debt and identity theft. Additionally, they learn to save for an emergency fund, how to pay cash for a vehicle, and how to have zero or little debt for college.

Posted in High School.