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DU Finance Students Feel Investors' Pain

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Oct 16, 2008 5:45 pm US/Mountain

DU Finance Students Feel Investors' Pain

Written by Paul Day
Reporting
Paul Day
DENVER (CBS4) ― It's the worst Bear Market in more than 20 years, and it's happening as bright, young graduate students prepare for careers in finance and accounting at the University of Denver's Daniels College of Business.

"We've never seen a situation, at least in my experience, where as many things are negatively impacting the market," said Finance Prof. Mac Clouse.

Five grad students on Thursday gathered with Clouse to talk about the gyrations in the stock market.

"Nobody has confidence in the fair value of assets right now," asserted Greg Howell.

A couple of plasma TV screens in the classroom were broadcasting the very latest financial news, but another large monitor showed how these students have managed real money.

Yes, real money. They have had the responsibility for investing a large gift made by an successful alum to the school's endowment.

In October 2007, the stock portfolio was worth $600,000. Now it's valued at around $420,000, a paper loss of $180,000.

"It's probably the worst thing the market has seen since 1987," said grad student Mallory Rubin. "I think that's what we're still absorbing this week."

These budding business leaders can tick off several reasons for the stock market's plunge. Among them is that big name players are getting hit by the credit crisis.

"Blue chips like GE and AT&T -- they cannot raise money," noted grad student Lu Wang.

They echo the talk of politicians: What's already crumbling Wall Street threatens to crater Main Street.

"Small businesses are going to have to really cut back and figure out how to run their business," grad student Ben Quinn said.

All the bad news on Wall Street has caused students like Mallory to become downcast.

"This isn't going to get better anytime soon," she told her professor.

But her classmate, Lu, believes the future is bright.

"When we come out of this crisis there (are) opportunities," he said. "You have a chance to be dominant in this market."

(© MMIX CBS Television Stations, Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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