Equity Analyst Project – Individual

Equity Analyst Project private Scott Hatten MBA 737-F1WW (W13) Professor Lauren Thomas March 2, 2013 This paper pull up stakes assess my tycoon to maximize my personal return on investment with an storage allocation of $1,000,000. The general goal of this exercise is to obtain the highest return possible within the co considerationinous 12 months. I am limited to the fol clinical depressioning asset classes for allocation of all investments * U. S. Equities * U. S. treasury Bonds * interchange This paper will be my course catalog on the justification of the allocation and potential earnings in each class. U. S. Equities U. S. 30-Year Treasury Bonds Cash Proposed Allocation 70% 25% 5% $ come up $700,000 $250,000 $50,000 Forecast +/- (12 Months) 13% 3. 0% 0% ROI $791,000 $257,500 $50,000 Estimated (ROI) for $1,000,000 as of December 31, 2013 = $1,098,500. 00 U. S. Equities As the joined States economy continues to grow in areas but struggle in others, the decision to place the largest allocation of funds into this category is made without hesitation. 013 is the first year after a presidential election and the second term for our on-line(prenominal) president. Typically in situations like this there is less quid about a new leader in office and much than emphasize placed on making strategic decisions and outcomes. Even though were are currently looking at the possibility of thousands of g all overnment ground worked to be subjected to mandatory pay reductions through a sequester plan, the United States business machines is moving at a strong pace.Since 2008 business and assiduity leaders have worked to understand the changing dynamics of both the US and International economic challenges and have positioned their organizations to adapt more quickly to those conditions (Investors, 2013). As consumer spending and consumer confidence continue to increase, U. S. Equities should continue on steady festering plan which is indicated in the strong S&P I ndices (currently at 1518. 20), NASDAQ (currently at 3169. 74), and the DOW (currently at 14089. 66).These indicators tolerate direct indication that investor and business confidence levels are extremely high and favorable for positive returns. U. S. 30 Year Treasury Bonds Although this investment class can be considered the most conservative of the three, the low yield of government bonds in the then(prenominal) 10 years does non lend a comparative metric against many other investment opportunities (Jacobs, 2012). The fixed rate of these dicks allows for a guaranteed return, but should only be employ at a point in an investing cycle when encounter is higher than potential income growth.The 25% allocation that is invested in this class is positioned to provide a long term guaranteed investment, with the possible that these lower rates will not rise significantly in the next few years. Cash The lowest of investment allocation classes is cash. The cost to leave any instrument in this category is expensive and provides very little ROI. The funds kept in this allocation are specific for future investment opportunities where passage of funds from other classes could have a significant impact or cost to the overall 12 month plan (Mangla, 2012).Summary Looking grit over the past ten years and most especially the past three years for investment returns and economic possibilities, there seems to be more growth in the past 24 months than what we have seen in over a decade. The rapidly changing international economic climate and the current government struggles with tax based polices and the continued climbing US shortage will make 2103 a year where investors must maintain a long term focus while being selective in short term growth opportunities.References Jacobs, D. L. (2012). Are Bonds The Next FacebookNegatively speaking?. Forbes. Com, 6. Investors Business, D. (2013, February 19). U. S. asset demand picks up. Investors Business Daily. p. A02. Mangla, I. ( 2012). Yes, You Can Dump Your Bank. Money, 27-28. Ross, S. , Westerfield, R. , Jaffe, J. , and Jordan, B. (2011-). incorporate finance Core principles applications. (3rd ed. ).