Fin 501 Stock Traxx Essay

Submitted By jtsang14
Words: 558
Pages: 3

Analysis/Strategies
The strategy we chose to implement and follow for Stock Trak in order to achieve a positive return amongst our assets was achieved by investing in liquid and long term investments that would generate a dollar return in the future. Our asset portfolio might not have been the most diverse but the investments we chose to invest as a group consisted of: long term equities, cash investments and bonds. Our group chose to invest in investments that would provide long term returns and that were also liquid from a cash standpoint. Based on the given cash of $1,000,000 USD, our group was able to make a dollar return of $ 27,671.09 or a 2.77% positive return on our asset portfolio. Considering the low variety of a diverse portfolio, our company was able to manage to pull off a long term profit of $25,930.39 (see Appendix-Account Balances).
Successful investors aim for high returns but due to fluctuations and the abnormalities in the stock market, high returns in a short run may not be the best thing for an investor to strive for. Considering, a simple economic/finance logic: What goes up, must come down; in the short run a stock may generate high returns but then sudden events, situation affect the pattern of a particular stock causing a sudden change that may be positive or negative. Therefore, successful investors would choose a stock that would generate more longevity compared to some sort of stock that will only generate a return in the short run.
Based on the symbols- pie chart and the historical report on Stock Trak, Kraft Foods was the highest earning stock in terms of profitability and return percentage. Along with Kraft Foods, our other top two earning investments in terms of return percentage were OPKO Health Inc. and Brent Oil Funds. In terms of return on dollars, the top three firms that we had assets invested in were: Kraft Foods, Brent Oil Funds and a bond from Weather-Ford International Limited. Almost all of the investments in our portfolio had positive profit return on dollar and percentage except for the 500 shares we invested in Abercrombie and Fitch that had a disappointing…