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Board of Trustees Professor Seminar

The Role of Federal Reserve Policy in Security Returns

Gerald R. Jensen, Ph.D.
Department of Finance

Board of Trustees Professor
Distinguished Research Professor

Dr. Gerald JensenThere is no questioning the tremendous influence that the Federal Reserve (Fed) has on the financial markets. Even Fed announcements that may seem to be innocuous by many market participants can create or destroy billions of dollars in global wealth. The Fed chairman has been described as the second most powerful person in the world (second only to the U.S. president) and many would argue that understates the power of the position. In this seminar, Professor Jensen will highlight the relationship between Fed policy decisions and security market performance. In addition, Dr. Jensen will discuss the structure of the Student Managed Portfolio class and how his research on Fed policy is integrated into student learning via the investments practicum course. The Student Managed Portfolio class operates as an investments laboratory, which is managed by Dr. Jensen; the course allows students the opportunity to apply their knowledge in making real-world investment decisions. Finally, the presentation will feature major findings that investors will find interesting and useful in designing their own investment strategy.

Dr. Jensen joined Northern Illinois University in 1987 and is the Jones, Diedrich, Mennie Professor of Finance. He was awarded the Board of Trustees Professorship in 2011. Professor Jensen has devoted over 20 years studying the role that Fed policy plays in the financial markets. A recent article ranks Professor Jensen’s scholarly record in the top 2% of finance researchers. Every semester, he interjects his research findings into classroom discussions. Investment research findings get a particularly heavy emphasis in his Student Managed Portfolio class, where a group of 12 students actively manage a real portfolio worth over $370,000 of NIU Foundation funds. Gerry is actively involved with the CFA Institute (CFAI) in the areas of curriculum and exam development. He is a strong proponent of the CFA charter and in classroom discussions emphasizes the importance of following the CFAI Code of Ethics in fulfilling one’s fiduciary responsibilities. In addition, every summer, he serves as a senior grader of CFA exams. Gerry recently contracted with McGraw-Hill to write a book entitled, Invest with the Fed: Maximizing Portfolio Performance by Following Federal Reserve Policy. The book is scheduled to be released in late 2014.

Tuesday, September 30, 2014
Sky Room, Holmes Student Center

11:30 a.m.—12:00 p.m., Refreshments
12:00 p.m.—1:00 p.m., Presentation and Q&A

No registration is required—Everyone is welcome!


Office of the Provost
Faculty Development and Instructional Design Center

Last Updated: 8/26/2014