In addition to examining what op-eds include, you will also want to look at how op-eds respond to a topic.  That is, writers of op-eds make one of several moves to provide the structure and organization for the op-ed.  I’ve provided you with a handout created by one of my NWP colleagues that I think you will find useful.  You’ll want to consider how the examples you read use one of the moves described on the handout from Linda Densteadt.  Thinking about these moves and how the writers use them will help you plan how to organize your own op-ed later. The moves are the way the op-ed is organized—where does the writing start and how does it move through the evidence, reasoning, claims, and counterclaims?  Where does it end or how does it conclude?

Note:  I’ve chosen these op-eds specifically because they do the following things:

1. They demonstrate the “unending conversation” that Burke describes in his parlor metaphor. That is, they show that many educational topics are ongoing, never ending, and have multiple perspectives—lots of people talking about what needs to happen in education.  The big, unending topic is what should students learn in school?
2. I chose these op-eds because they further your ability to respond to the specific conversation about educational issues. That is, your op-ed that you will eventually write will need to respond to the conversation.  Seeing how others respond through op-ed can help you develop your own argument later on.
3. These pieces are good models for the essentials, possibles, and structure of op-eds in general.

Review: As you identified essentials and possibles, you should have noticed that op-eds represent an argument or someone’s stance (claim) on an issue or topic. That is, I hope you noticed that each op-ed responds to an argument (conversation) with its own nuanced claim (thesis) about the topic. 

• In order to support the claim (thesis), each writer used logical, reasoned evidence from research.
• Writers provide commentary on the evidence used. That is, the writer explains in his/her own words what the evidence means and how it connects to the claim he/she is making.
• Writers also address the counterclaim in some way—some explicitly and others use the entire op-ed to respond as a rebuttal to a counterclaim.
• Op-eds begin by explaining the problem.
• Op-eds often end by providing a “call to action”.

To better see the structure, you will do a closer reading of one of the op-eds that you have already read.  Choose one of the op-eds that you read to read more closely.  You will complete a  blog post that responds to the following reading exercises:

1. FIRST READING—Trace Key Words Key Words: The writer focuses the OpEd on key points or values that ground the writer’s purpose. These points may be at the heart of making change or shifting thinking, or they just may express what seems most important for the writer. They connect the evidence to the claim and develop the organization of the piece. TIPS for Identifying Key Words: If the article has a headline, use the headline to identify key words to trace. If it doesn’t have a headline, start with words in the first paragraph and claim. FIRST READING TASK: Trace the organization by underlining words that repeat or emphasize key points in the argument. Look for repetition and/or synonyms of the key
2. SECOND READING—Identify Claims and Commentary Claims and Commentary: Readers expect the writer to state a claim and explain how the evidence connects to the claim. Claims are generally repeated and refined in OpEds. Readers look for and expect the evidence to shift or adjust the claim. The nuanced or refined claim is generally at the end. · Commentary is the connective tissue of an OpEd. Readers depend on and expect the writer to make connections and explain relationships between supporting and countering evidence and views. The commentary helps a reader understand why the key points or values matter and how the evidence effectively supports the claim.
3. THIRD READING: Annotate OpEd Moves OpEd Moves: A purposeful argument is built by thinking about the heart of the issue. What matters? Writers ask: What do I want readers to understand? What is the best way to get their attention and influence them? OpEds use all the basics of argument writing: claims, commentary, and use of sources. But there are three writer’s moves that seem most common. Look for them in all the OpEds you read. Use them in the OpEds you write. 1. Something Happened: OpEds are written in response to current social issues. This names the reason a writer is taking a stand to call for change or offer alternate views to a public conversation. 2. Claim Series: OpEd writers often state and change their claim several times from the beginning to end of the argument. The series of claims have different purposes, but together they form a line of visible line of logical thinking. o Early Claim: An early claim frames the focus of the argument at the beginning of the argument. This early claim establishes the issue and often states a personal view or ask a question. Questions launch an inquiry that allows the writer to provide answers and inform a reader and argue a perspective or claim at the same time. o Call to Action Claim: A call to action claim states what is being done, or what needs to be done and who is or should be doing it. This type of claim often appears in the middle or end of an OpEd. o And so, now…Claim: OpEds usually close with a nuanced or refined claim. This claim emerges from the organization. As the writer comes to new thinking on the issue, the claim emphasizes that new thinking with an and so, now…claim. 3. Multiple Views: OpEd writers often pair two views. They use sources to counter and refute. TIPS for Identify Multiple Views Look for signal phrases that introduce an opposing view: another view, etc.

After you’ve taken time to complete the three close reading exercises, write your part 3 blog post for this week.  The blog post would reflect on what you learned through the three reading exercises.  That is, what can you add to your essentials list for what an op-ed does and includes?  What about the rhetorical situation?  How does that influence what the writer does?

• https://secure.ncte.org/library/NCTEFiles/Resources/Journals/TP/0302-may2019/TP0302May19Yes.pdf (Links to an external site.)
• https://www.inquirer.com/philly/opinion/20120917_Op-ed__What_citizenship_means_for_the_21st_century.html (Links to an external site.)
• https://kappanonline.org/pandemic-pedagogy-covid-19-online-milman/ (Links to an external site.)
• https://kappanonline.org/russo-how-education-reporters-can-fight-back-against-misleading-opinion-pieces/

Web Quests are an effective and fun way to bring reading and  technology into your content area classroom.  I call this “hidden  reading” because students will read a great deal to accomplish the task  you set for them; however, students will not be aware of the amount of  reading they have been required to do due to the fun you are helping  create.  Carefully read the section of your textbook concerning  Web Quests (pages 267-268) then create a Web Quest you could use in your  future or current content area classroom.  I encourage you to not think  of this as just an exercise, but again, to create a Quest that you can  actually use.  Make certain the Web Quest and its subject matter is also  appropriate for your grade level.  This should be a richly supported  Quest that leads your students through active inquiry.

Web Quests are an effective and fun way to bring reading and  technology into your content area classroom.  I call this “hidden  reading” because students will read a great deal to accomplish the task  you set for them; however, students will not be aware of the amount of  reading they have been required to do due to the fun you are helping  create.  Carefully read the section of your textbook concerning  Web Quests (pages 267-268) then create a Web Quest you could use in your  future or current content area classroom.  I encourage you to not think  of this as just an exercise, but again, to create a Quest that you can  actually use.  Make certain the Web Quest and its subject matter is also  appropriate for your grade level.  This should be a richly supported  Quest that leads your students through active inquiry.

            First, you may want to explore the many Web Quests  available for your content area at the following sites.  There are other  sites, but please note the following guidelines:  Your Quest must be  original and not use the words found on some of the templates on these  websites.  It must also be developed for this course.  You must use a Web Quest format; in other words, a Word document will not  be considered a complete Web Quest.  These sites are easy to use and all  provide technical support, but don’t wait until the last minute.  They  are also all free!  Your Quest must show evidence of many content links,  but also books and other supplemental reading that you will provide for  your students’ use in the classroom.

            The following information should give you all the  information you need to create a wonderful Web Quest.  None of these  require fees to create a Quest, so please don’t pay just for this  assignment! It is also possible that some of the links no longer  function. 

http://webquest.sdsu.edu/ (Links to an external site.)

One of the best sites for creating WebQuests is Filamentality at:  http://keithstanger.com/filamentality.html (Links to an external site.)    Be sure to scroll to the bottom of this last address for other addresses!

Other sites for creating Quests are:

http://www.webquest.org/ (Links to an external site.)

http://zunal.com/

Please plan to submit the link directly to your Web Quest or be prepared to submit passwords if needed.

Select and research ONE of the following companies that has been in the news for an ethical dilemma. Prepare a PowerPoint about this company’s ethical dilemma and resulting ethical failure, according to the following instructions. Sources are provided to assist you getting started (click company name link). You will need to further research the company as well as applicable ethical frameworks and related law in your text and required readings.

NOTE: In preparing this project, refer to your Week 1 Lesson Readings and Resources on ethical frameworks.

CHOOSE ONE OF THESE COMPANIES/ISSUES: The Links are a factual starting point for your information and further research.

1. Boeing – 737 MAX-8 Jet death crashes. 

https://www.npr.org/2019/05/06/720553748/boeing-knew-about-737-max-sensor-problem-before-plane-crash-in-indonesia

2. Purdue Pharma – opioid crisis, deceptive marketing. 

3. Wells Fargo – fake accounts fraud; $3 billion settlement with U.S. DOJ & SEC. 

https://www.cnbc.com/2020/02/21/wells-fargo-to-pay-3-billion-in-setting-criminal-and-civil-investigations-into-its-fraudulent-sales-practices.html

The following resources will also assist your PowerPoint.

• What is Ethical Dilemma?
• Checklist of guidelines when you face ethical dilemmas
• Guidelines to Prepare an APA PowerPoint
• How to Add Speaker Notes in PowerPoint

Assignment Instructions:

1. Create a 12– 15 slide PowerPoint presentation that includes:
   • Title slide with your name, course, date, school, title of presentation;
   • Agenda slide – This lists the key points covered in the PPT;
   • Content slides containing bullet points information with illustrations, diagrams, pictures, graphics etc., as appropriate to the slide’s content;
   • Speaker’s notes on each slide – either text presented in the Speaker Notes section at the bottom of the slides or Audio through your Voice speaking (or both); (Note: Speaker’s Notes are not duplication of the text on the slides. They are explanatory narrative.)
2. Identify the company you selected;

• explain the company and its industry;
• provide the factual background of the problem; and
• clearly state the ethical dilemma presented by the situation. There should be only ONE ethical dilemma. The company had two choices: the act it chose and an alternative it did not do.

3. Identify and define at least one ethical framework that the company apparently employed in making its decision. Note — Not “Should have used.” It is not acceptable to say it did not act ethically or did not use a framework. Analyze it. Frameworks include utilitarianism, free market ethics, deontology, virtue ethics , etc., covered in your course readings.

4. Then, identify and define at least one ethical framework that the company should have used when the problem arose, and explain how to apply it for them to have reached a better result than what actually happened. Be clear.

5. Identify and explain measures the company should implement to avoid this type of problem in the future.

6. Within your discussion include whether the company had a code of ethics or policy that seemed to apply to the situation, and if so, what went wrong with that?

7. Explain what business leadership in any company can learn from this situation.

8. Have a conclusion that wraps up the key points.

9. Include a Reference slide with your sources listed in APA format. (NOTE: Sources must be cited in slides and speaker’s notes for direct quotes, specific facts and graphics, same as in a paper, per APA format. If you are doing audio speaker notes, you would mention the source in your speaking narrative.) (Reminder; we are using APA 7th Ed. format.)

10. Your PPT should have a professional slide background and graphics on each slide.

11. Submit your presentation here in the Assignments section, as a PowerPoint attachment.

12. Please compress your PPT (zip file) if necessary for uploading. There are several sources online to help you with compressing a PowerPoint presentation.

BUSNWK6

  

J.P. Morgan has mutual funds that seek to exploit behavioral biases. In this case study you will first read more about this fund and another one, and then answer questions that appear at the end.

“JP Morgan’s behavioral finance process began in 1992 in London. Even in 2006, two thirds of the $76 billion AUM in behavioral finance products was in non-U.S. stocks. Jonathan Golub took the lead CPM role for U.S. retail products, including the behavioral finance funds. At investment conferences and in conference calls, Golub offered his views on broad capital market trends and gave detailed information on the investment process at JP Morgan. 

Investment Philosophy: Traditional finance theory held that investors were rational, or if they were not, that sophisticated investors would trade aggressively and force stocks to be accurately priced. Eugene Fama made this argument persuasively in the 1960s and, by the late 1970s, it had become academic orthodoxy.8 The early 1980s marked a turning point. Anomalies in stock prices and a new behavioral finance theory emerged, built on the psychology of Daniel Kahneman and Amos Tversy, whose collaborative work earned the 2002 Nobel Prize. Early contributions by Robert Shiller and Richard Thaler cast doubt on Fama’s efficient markets hypothesis. 

1 Early contributions to behavioral finance included: Robert Shiller, who argued that stock prices were too volatile given realizations of fundamentals; and Werner DeBondt and Richard Thaler showed that individual stocks tended to mean revert.

2 Bradford De Long, Andrei Shleifer, Lawrence Summers, and Robert Waldmann developed early models of the limits to arbitrage, which helped to explain why sophisticated investors had a limited appetite for correcting mispricing. Unlike in traditional finance models, real arbitrage involved costs and risks that rational investors were sometimes unwilling to bear.

3 Prominent contributions to academic research on efficient market anomalies included: Rolf Banz showed that small stocks tend to outperform large stocks; Sanjoy Basu found that stocks with low valuation ratios, like the ratio of price to earnings, also tended to outperform; Victor Bernard and Jacob Thomas extended early work by Ray Ball showing that the prices of stocks with earnings surprises were likely to continue to drift upward; and Narasimhan Jegadeesh and Sheridan Titman showed the profitability of momentum strategies. The meaning of these empirical findings was still hotly debated. Some argued that these characteristics were proxies for firm risk and others maintained that they reflected mispricing, and hence underlying behavioral biases.

Golub commented: These anomalies are glaring. Analysis shows that this outperformance cannot be explained by risk, so something else must be at work. We believe that that something is the collective impact of human psychological biases on markets.

Drawing on academic research in psychology and behavioral finance, JP Morgan emphasized two behavioral biases: overconfidence and loss aversion. Complin and Silvio Tarca, the lead portfolio manager of the Intrepid funds, believed both were pervasive and persistent in influencing investing decisions and key to explaining the existence of value and momentum anomalies. Each bias was grounded in psychology, with an application to financial decisions and an implication for stock prices. Of course, there were other biases relevant to financial decisions, and at times Chambers had used a broader set in marketing the Intrepid funds. (See Exhibit 7 and Exhibit 8 for one-page summaries of recency and anchoring.) But, Complin and Tarca argued that overconfidence and loss aversion were the most powerful effects on stock prices.

Chambers defined overconfidence, in his marketing materials, as the tendency of individuals to overestimate their own ability. He pointed to surveys of drivers, for example, where more than 80% believed they were “better than average.” 

Complin elaborated: When it comes to investing, people believe that each decision they make will be better than it actually is. This leads to more decisions (and hence trading) and a tendency to pursue winning stocks for short term outperformance. This is the antithesis of a long-term, slow-burn strategy like value investing. Overconfident people have great difficulty being systematic value investors, particularly when value looks like it isn’t working. This in turn means that they miss out on the persistent tendency of value stocks to undergo massive mean reversions and outperform for extended periods.

Our approach, which forces our funds to systematically overweight value stocks, means that our investment behavior is changed. We are forced to focus on out of fashion stocks that we wouldn’t naturally have bothered with and that means that we cannot fall into the same overconfidence trap.

Chambers defined loss aversion as the tendency of individuals to seek pride and avoid regret in their decisions. He pointed to a study that illustrated the disposition effect: in a large sample, individual investors were twice as likely to sell winning positions – stocks that had gone up – as losers. 

Complin added:

When you buy a stock and it goes up, it’s easy to make the decision to sell that stock because you’re just taking profits – an easy thing to do psychologically. If your stock goes

More specifically, a JP Morgan study showed that a consistent strategy of the cheapest stocks (defined as the bottom 10% of a universe of 3000 stocks sorted on the ratio of price to sales) at the beginning of each year and holding them in equal proportions for a one year period produced an average annual return of 15.8% over the 55-year period ending in 2005. A strategy of buying the most expensive stocks in the same way produced an average annual return of only 2.8%. Likewise, buying the best performers over the previous year returned 15.2%; and buying the worst performers returned only 3.4%. 

Data cover the period from 1951-2005. These results were equally weighted across stocks within each decile portfolio and did not take into account costs of trading.

When you buy a stock and it goes up, it’s easy to make the decision to sell that stock because you’re just taking profits – an easy thing to do psychologically. If your stock goes down, however, selling it represents the final, irrevocable admission that you’ve made a mistake. For markets, the consequence of the disposition effect is that the movement of stocks in either direction is slowed down. Stocks don’t immediately reach a new price warranted by the information that they have just released – as efficient market theory would have you believe. They take time to get there. That’s why momentum investing works. Our approach requires a systematic tilt to momentum, forcing us to run our winners and cut our losers. It also forces our investors to re-evaluate stocks which have done well for a long time but are now starting to disappoint.

Built on both data and insights from psychology, JP Morgan’s investment philosophy held that these long term market effects were the direct result of the collective impact of human behavioral biases on the markets. Complin summarized:

We think that nothing other than human behavioral biases can explain why value and momentum stocks have outperformed for 55 years, and probably longer if we only had the data. Human behavior at this deep psychological level doesn’t change. The basic tendency to be overconfident, to seek pride and avoid regret was there 50 years ago and it will be there in another 50 years. In theory this means that, provided we don’t change our investment process, we will still be outperforming in 50 years time.

In the three years since a 2003 launch in the United States, JP Morgan’s behavioral finance products had attracted new assets at a rapid pace. The Asset Management unit at JP Morgan had been a pioneer in what it termed “Behavioral Investing.” It had over a decade of experience since 1992 when it offered an initial retail product in the United Kingdom.2 In the late 1990s, JP Morgan offered a wider range of mutual funds in the U.K. and Europe, and began to focus its efforts on the larger U.S. market.

On the investment side, Chris Complin, chief investment officer (CIO) for behavioral finance products globally, had all five new products in the top 20% of their Lipper categories.3 This provided confirmation for a concept that been successfully applied internationally. On the business side of the Asset Management unit, Richard Chambers, the head of U.S. and European marketing, had given investor psychology a central role in the branding of the new funds. The idea that well documented behavioral biases could create opportunities for JP Morgan’s investment managers seemed to resonate with retail investors.”[1]

We now move on to a newspaper article published in the Wall Street Journal[2].

His J.P. Morgan Intrepid Value Fund (trading symbol JIVAX) uses a mix of quantitative and behavioral strategies to sort out undervalued stocks that investors shun because they act irrational or overlook opportunities for short-term gains.

Mr. Blum is chief investment officer of the U.S. behavioral-finance group at J.P. Morgan Funds and manages a group of funds that aim to leave Wall Street’s herd mentality behind.

Markets aren’t rational and investors’ decisions follow emotions rather than facts, he said. “When it comes to risk, that irrational tendency becomes exaggerated,” Mr. Blum said.

Take Macy’s, said J.P. Morgan Funds client portfolio manager Theodore Dimig: “I have heard it all: department stores don’t have a reason to exist, they go out of business; the management is terrible; they made horrible acquisitions.”

“The bears may be right” in the long run, but now Macy’s market value “is absurd,” Mr. Dimig said. “That’s how you make money.”

Mr. Blum said financial stocks offer a rich picking, but he warned that the sector is “a bit of a minefield.” His fund is particularly fond of Capital One Financial and Goldman Sachs Group.

With Capital One, the market remains concerned that delinquent credit-card holders will continue to hurt profits. But the credit-card lender turned bank has substantial leverage to an economic recovery, Mr. Blum said. “The consumer doesn’t have to get back to normal for us to make a nice profit,” he said.

For Goldman Sachs, “the momentum has been fantastic,” Mr. Blum said, particularly since the fund bought the shares at around $70—they now trade at around $170.

Goldman “got hammered with the rest of the financial-services industry” but is well-managed, he said.

Overall, Mr. Blum said investors haven’t caught on to the improving economy.

“Leading economic indicators are changing to the better,” but investors still worry about unemployemt—a lagging indicator. Case in point: Nearly 80% of companies that are components of the Standard & Poor’s 500 were able to beat the average analyst earnings estimates in the third quarter because Wall Street’s earnings predictions were too timid.

As of Tuesday, J.P. Morgan Intrepid Value Fund was up 22.4% so far this year and down 7.6% over the last three years; its benchmark, the Russell 1000 Value Index, had risen 18.5% this year. The J.P. Morgan fund has a two-star Morningstar rating, mainly because of its relatively short track record since its 2005 inception.

Behavioral funds are somewhat of a niche; the LSV Value Equity Fund (LSVEX) also uses a mix of quantitative and behavioral strategies. It has three stars and is up 23% this year and down 9.4% over the last three years.

The Intrepid Value fund has $320 million under management, and the minimum investment is $1,000. Its assets have been flat this year. “To us, that’s behavioral finance at its best: People got burned on equities and they shun risk at exactly the wrong time,” Mr. Blum said. When the sentiment changes, “chances are, we may be bearish.”

Read the case study. Then answer the following questions:

1) Briefly describe the money management business of JPM.

2) Identify 3 behavioral biases that JPM hopes to exploit, and how they can be exploited to obtain superior returns?

3) The fund created by JPM to exploit these biases is described on their website.

https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/d/jpmorgan-intrepid-value-fund-a-4812a0284

The ticker symbol for the fund is JIVAX.

The fund was launched in 2005. What has been the return to the fund from Jan 31, 2005 to the current date? (Provide the starting price, ending price and return over the time period.)

What has been the return to the S&P 500 over the same time period? (Provide the starting price, ending price and return over the time period. S&P is an appropriate comparison as it is comprised of mid and large sized firms.)

4) What could be the reasons for the difference is performance for JIVAX and S&P 500? What suggestions would you make for improving the performance of JIVAX?

    

[1] Behavioral Finance at JP Morgan, Harvard Business School, 9 -207 -084, FEBRUARY 28 , 2007

[2] Bad companies can be good investments, says Christopher Blum

  Bloomberg Market Concepts. Complete “Getting Started”, “Terminal Basics”, and “Fixed Income” under core concepts. Students sign up on the Bloomberg terminal.  

 Create a hypothetical 6 bond portfolio using data from Bloomberg and write a paper providing information on the 6 bonds. Assume each bond purchase is for $1,000,000 face value.  The student should have three corporate bonds and three municipal bonds.  Each corporate bond issue must have a minimum of $50,000,000 outstanding, have a US domiciled issuer, and be in US dollar currency.  Each municipal bond issue must have a minimum of $25,000,000 outstanding, and may be taxable, tax-free, or subject to AMT.  Bonds can be fixed or floating but the better papers with have at least one floating rate corporate.  My preference is: two fixed rate corporates and one floating rate corporate; and three fixed rate municipals, one a general obligation bond and two revenue bonds. If you can give me your view on bond, please add to the paper. 

• Coupon, maturity, price, date of your observation.
• CUSIP.
• Light information on the issuer; just three sentences.
• Security or collateral if stated.
• Call dates, call prices, and any sinking fund provisions.
• YTC, YTM, YTW.
• Invoice price broken down by price plus accrued interest.
• Yield spread data including, Treasury Benchmark and spread, G-spread, I-spread, and OAS.
• Any other relevant facts.