After a sharp decrease in prices in the U.S. stock markets last week, the University is not expressing concern for its share of stocks in the highly volatile market. Instead, the University is sticking with its investment policy, regardless of changes in the market. But that is a part of the stock market game.
Endowments are donations used for long-term investments.
The University invests 75 percent of its endowments in stocks. However, the decrease in stock value is normal and expected in a constantly fluctuating market, Beckmann said. There are very large swings in cycles, so it is not unexpected, nor is it a surprise to have a decrease every now and then. Economics professor Fred Gottheil said the fluctuation in stock prices has nothing to do with the current economic conditions. No major corporation went bankrupt, and no war was started.