Analysis Of Mr. Bailey 's Investment Portfolio

This report has been prepared for James Brown who has $20,000 to invest. In this report I will analyse Hallensteins Glasson and determined if this is a good option for James if he wants quick capital gain.

I am an investment analyst with experience across a broad array of asset classes: equity, credit, structured products, and managed funds. Currently, I conduct fixed income analysis as a member of Manhattan Life Group’s investment team. As an Analyst, I research investment opportunities through bottom-up fundamental analysis of financial statements employing a high emphasis on managing risk to preserve capital and generate returns.

A new kind of financial investment in the North American markets (Sapp, 2010, p. 4)

The D’Artagnan Capital Fund should take a buy recommendation on Liberty Property Trust. Some of the main reasons for investing are

Mutual funds and the companies listed in the Dow 30 all fall under a specific type of asset classes we all need to know about. Once we have determined the type of investor we are, we can then determine what fits our needs in terms of investments and what kind of benefits we are seeking in return. The mutual funds and companies listed under the Dow 30 all fits the investor one way or the other and in the following, I will determine the asset classes for my selected mutual fund and Dow 30 organization. I will also explain how their classifications and the current investment environment impacts organizational decisions concerning the composition of its portfolio.

The investment services industry can be daunting and ambiguous for individuals who seek a return on their capital. After working hard earning your wealth, it is important to understand the different services offered by professionals and what solutions fit you personally. One of the main questions we get asked here is:

Despite numerous periods of global financial excesses, and subsequent corrections, over the past 30 years, the returns on equities and bonds in the US and Europe have been considerably above their long-term averages. The outperformance has been most pronounced in long-dated government bonds. The average annual real return on these instruments between 1985 and 2014 was +5.0% in the US and +5.9% in Europe, compared to long-run returns of +1.7% and +1.6%, respectively. Meanwhile, the outperformance of equities between 1985 and 2014 was more modest. The average annual real return on US equities was +7.9%, compared to a long-run average of +6.5%, while these respective measures in Europe were +7.9% and +4.9%. Two major related factors can predominantly explain this golden period for both bonds and equities, namely the taming of inflation and the subsequent decline in interest rates to historic lows. Both inflation and interest rates are important inputs into valuation models for long duration assets, thereby implying that their respective influences on returns over the past 30 years have, therefore, been largely felt through changing valuations. Equity returns are, however, explained by other factors, including economic and corporate fundamentals, of varying complexity. Positive demographics, technological innovation, and global supply chains have also helped to contain costs, while the emergence of new markets, notably China,

Despite numerous periods of global financial excesses, and subsequent corrections, over the past 30 years, the returns on equities and bonds in the US and Europe have been considerably above their long-term (100 year) averages. The outperformance has been most pronounced in long-dated government bonds. The average annual real return on these instruments between 1985 and 2014 was +5.0% in the US and +5.9% in Europe, compared to long-run returns of +1.7% and +1.6%, respectively. Meanwhile, the outperformance of equities between 1985 and 2014 was more modest. The average annual real return on US equities was +7.9%, compared to a long-run average of +6.5%, while these respective measures in Europe were +7.9% and +4.9%. Two major related factors can predominantly explain this golden period for both bonds and equities, namely the taming of inflation and the subsequent decline in interest rates to historic lows. Both inflation and interest rates are important inputs into valuation models for long duration assets, thereby implying that their respective influences on returns over the past 30 years have, therefore, been largely felt through changing valuations. Other factors, of varying complexity, can help to explain impressive equity returns, including economic and corporate fundamentals. Positive demographics, technological innovation, and global supply chains have also helped to contain costs, while the emergence of new markets,

Internationally, the flow of capital across national borders and into markets once believed to be impregnable is occurring at the speed of light. Technological innovation, accessibility to international market economies, and increased globalization has expanded the universe of securities available for investments and more importantly portfolio diversification. The developments mentioned above questions traditionally accepted principles by investors who believed that investing solely in U.S. securities would result in a better risk-return tradeoff. Prudent investors have known that diversifying across industries and markets will lead to a given level of expected return at a significantly lower level of risk, and vice versa. However, the advantages of such diversification are limited due to the same cyclical economic fluctuations that all assets (or companies) in a particular country are exposed to.

The first investment choice Michael wishes to have is shares purchased at the Australian Stock Exchange. Some of the advantages of shares purchased at the Australian Stock Exchange include capital growth, which takes place when the price of one’s share expands. It builds the investors’ wealth as well as protects them from inflation, the increase in price and the decrease in the purchase amount. Also, another benefit of shares purchased at the Australian Stock Exchange is its flexibility and control. Specifically, the control that buying and selling reasonable amounts gives to the investor, for example, saving a bit of money.

The remaining alternatives for this client are to invest in U.S. Rubber, a market portfolio, and a 2-stock portfolio of High Tech and Collections. The expected rates of return are 9.8% in U.S. Rubber, 10.5% in a market portfolio, and 6.7% in the 2-stock portfolio.

This quote discussing the diversification of Antonio’s investments in the first act of Shakespeare’s play “The Merchant of Venice” was written in the 16th century. But it wasn’t until 1952 that Harry Markowitz wrote his paper “Portfolio Selection” that made him “the father of modern portfolio theory”(Markowitz, 1999). Since then, the use of statistical tools by financial professionals has become very common. In this report, the performance of Microsoft Corp. (hereinafter called MSFT) and Apple Inc. (hereinafter called Apple) will be analysed, by looking at both monthly and yearly, simple and excess returns. First, the descriptive statistics of each individual stock will be examined, and the “Efficient Frontier” and “Capital Market Line” will be drawn, then the performances of the two shares against each other will be compared, and finally an examination of the performances of both companies using CAPM. All the calculations are found on an excel file that will be referenced throughout this report.

I have been asked to write this recommendation for Robert who is looking to invest his money of $20,000 into either Spark NZ Ltd or Ryman Healthcare Ltd. Robert is interested in his money being invested as he is focused on the potential growth which could occur over a period of time.

GDP is forecasted to be between 3.0%-4.0% in 2015. This is supported by the revision of the GDP in 2014 from 2.5% to 3.0% by Office for Budget Responsibility(OBR) in the Autumn Statement. (Office for Budget Responsibility, 2014). This is also supported by the reduction in unemployment rate by 7.2% in the fourth quarter which would increase consumption. (Office for Budget Responsibility, 2014).

Financial markets have been subject to significant changes in recent years due to the credit crisis. Experts believed that risk was being under-priced, which was expressed in the markets by a narrow spread. They believed that once the market corrected this under-pricing and re-priced the risk, it would likely cause a dislocation in financial markets by overshooting its equilibrium. Hence the prices, yields and returns on bonds have been significantly effected by the global financial crisis. Looking at the effects this credit crisis had on the short term money market by evaluating bond performance over the past 10 years can give us significant insight into the extent of this dislocation.