Wednesday’s Word: Bear Market

By Abigail Howd, Spring 2018 IAC Student Intern

A bear market is a prolonged period when investment prices continuously drop. According to FINRA, bear markets are often “accompanied by economic recession, rising inflation, or rising interest rates.” A decline of at least 20% in the market index usually indicates we are a bear market. To date, the longest bear market in United States history happened during the Great Depression when stock and bond prices dropped for four consecutive years!

Bear markets often lead to graveyard markets which refer to an overall decline of new investments. This decline occurs for two reasons. The first is that investors who already own holdings would lose large sums of money trying to liquidate their declining investments. The second is that potential investors are hesitant to invest at all during a bear market. Continue reading

W. Dowdy White Joins the Investor Advocacy Clinic

W. Dowdy White joined the Investor Advocacy Clinic for its spring 2018 semester.  A graduate of the University of Georgia with a degree in agricultural communication and leadership/service, White will graduate from the Georgia State University College of Law in May 2019.

White joined the clinic because of his interest in obtaining lawyering experience and to help those who otherwise would not be able to obtain a lawyer.  He says:

“Investors are a major part of our economy, but not everyone has the means to invest millions of dollars or obtain a lawyer if they are harmed.  I want to make the most of my time in law school by working to help real clients in need of assistance.”

Upon graduation, White plans to litigate civil cases.

Investor Advocacy Clinic Welcomes Abigail Howd

Abigail Howd joined the Investor Advocacy Clinic for our spring 2018 semester.  Howd is a graduate of Mercer University with a theatre major and minors in music and English. She joined the clinic to help investors.  Howd says:

“The Investor Advocacy Clinic helps people who wouldn’t otherwise be able to obtain  legal representation.  At the same time, it helps law students deepen their lawyering skills by working directly with clients and putting their knowledge into practice.”

Upon graduation in May 2019, Howd plans to be a litigator.


Tax Clinic’s Professor Lester Presents at EITC Day

The Philip C. Cook Low Income Taxpayer Clinic helps taxpayers with IRS controversies. It is also an active member of the community, educating taxpayers. On Friday, January 26, 2018, Tax Clinic Associate Professor Tameka Lester presented as part of IRS Earned Income Tax Credit (EITC) Day.  Along with United Way CEO Milton J. Little, Jr., Congressman John Lewis, and other community leaders, Professor Lester discussed how the EITC helps taxpayers. #EITCawarenessday

Translate This!: “I hired an asset recovery company after I lost my investments in a Ponzi Scheme.”

By: Julio Perez, Spring 2018 IAC Graduate Research Assistant

An asset recovery company is a company which extends its services to scammed investors with promises to recover their lost assets in exchange for sometimes substantial fees. However, all might not be as it seems. The problem with asset recovery companies is that sometimes they offer services at great expense when the SEC or a clinic can do those same services free of charge. Continue reading

Translate This!: “I used to be a day trader before I became a bartender.”

By: Julio Perez, Spring 2018 IAC Graduate Research Assistant

Although my explanations of various investment terms should be useful for everyone, it should be apparent that some investment practices are too risky for your average investor and concepts such as liquidity and investing on margin might elude the average person shoring up funds for their retirement.

Day-trading is one of those very risky activities.  Day traders rapidly buy, sell and short sell stocks throughout the day in hopes of making quick profits for the brief moments they hold on to said stock shares.  Realizing the high risk involved in day trading, the SEC put out an investor publication warning potential day traders of the severe potential losses, how day trading is not “investing,” and most notably, how they should not believe in claims of easy profits and beware of hot tips from websites catering to day traders.

Translated:I was a day trader until I lost all of my savings by engaging in such extremely high risk activites.”

Wednesday’s Word: Dow Jones Industrial Average

By Alisa Radut, Spring 2018 IAC Student Intern

The Dow Jones Industrial Average is a well-known stock market index of thirty major companies, including McDonald’s, Wal-Mart, Visa, and, as of 2015, Apple (for the complete list click here).  This index informs consumers how stocks in these major companies traded on the stock market are doing in general.  As the second oldest market index (since October 1, 1928), the Dow originally intended to measure the activities of companies dealing with heavy products, such as those used in construction.  Today, however, it no longer focuses only on industrial companies.  The Dow’s companies have significantly changed scope and are considered to be leaders of the economy.  Why do consumers care about the Dow? Its beginnings in a self-sufficient U.S. economy exhibited an independence from what was happening in other economies around the world.  Back then, everyone’s income moved in the same direction, and the Dow was a great indicator of the economy’s health.  According to an article in The New York Times, today the Dow is a “rough measure of stock performance.”  The wealth of a few top companies do not accurately represent as many Americans today as it used to.  The New York Times has criticized this measure as a reflection of investors’ own reactions rather than a useful indicator of how the market is actually performing. Continue reading