Math2
Gary Grandview –A Continuing Case – Part 5
Investing Your Wealth: Asset Allocation
Gary has been watching the financial news network on cable, reading articles on how to invest in business magazines, and listening to a co-worker recount his plans to double the size of his portfolio in six months.
Gary is now convinced that his financial future lies in the stock market. His co-worker is predicting a windfall in technology stocks. He is planning to get married, and he wants to earn money fast. He believes that his investment in three different types of green technology stocks will give him adequate diversification with maximum growth potential.
Although he has heard that it might be a good idea to buy bonds in order to diversify his portfolio, Gary, as you may recall, thinks investments such as savings accounts are boring and their returns are too low.
The other day Gary read an article on how trading online with a margin account can increase his return, and he’s interested in your opinion. Gary admits that he has virtually no knowledge of investing or time to do research, but he thinks his co-worker's “hot tips” is all he really needs.
Gary has heard about misleading financial statements issued by some firms, but he believes that even if companies misstate their financial conditions, this will not affect their stock prices. Gary would like to hear your advice.
Gary Grandview Part 5 Reading Segment Rev 3.2.2013 - SL