Fin Report

1237 Words Mar 6th, 2014 5 Pages
Group: Chia Ching Ng, Li Jing Lu
Professor William C. Johnson
FIN 315
Final assignment: Portfolio Project
December 6, 2012
Portfolio Project
We changed our strategy after the first interim report. We realized that it is hard to use “bottom-up” approach to invest by looking into a particular stock to invest. Right now, we are trying to use “top-down” approach to invest in our portfolio. Top-down approach is a method of analysis that involves looking at the "big picture" first, and then analyzing the details of sector or industry then towards the company or stocks. By first analyzing the overall picture, such as a macroeconomic trend, we can start narrowing potential companies to invest.
After conducting some economic analysis, our
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According to the data and the graph we worked out, we have outperformed Nasdaq from 10/22-11/26 and ours outperformed both on 11/14. Please refer to our graph 1 for details. The reason we think S&P 500 and Nasdaq could be a good benchmarks is that there are many tech stocks, consumer goods and service stocks and energy stocks just as ours does. I think one of the reason our portfolio hasn’t performed well enough is because our portfolio has a potential correlations and hasn’t been diversified enough.
The stocks we picked are all that we know about, which we think has the potential to grow in the future. We had Nokia, Apple, Google, At&T, Cisco, Intel for Tech stock, and we had RDS, ETP, Duke, for energy, and Wells Fargo&co and Coca-Cola for consumer goods and services. There are some particular stocks that we’d like to talk about: I, Lijing Lu, actually believe that Nokia is going to perform well in two month when I first started trading because its release of Lumia 920. After its presentation and new conference in Oct, it confirms my belief, and that’s why I bought a great portion of Nokia. However, it didn’t perform well as I expected it to in the next 2 weeks. We were afraid that people lose faith in Nokia even with the help of Microsoft’s generous “donation”. On Nov. 6th, we saw that Nokia was picking up, and that’s when I decided to buy back Nokia again. Though

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