Portfolio response
Babu Dev
week3response.docxWilliam Armstrong(Oct 15, 2018 7:17 PM)- Read by: 4
Given the conditions of the assignment, we had to buy into the stock market at the high right before a market correction (Imbert & Gibbs, 2018). As such, no stocks that I have are currently up. It is likely that some will not even recover before the end of this course. However, I have no intention of making changes in those stocks prior to the end of the course. I did debate selling them when they really started dropping and shorting the stocks, but using the yahoo tracker I did not know how I would account for this. Of note, the stocks that I put in for a little bit of diversification, were not really effected that much by the correction. In particular, Procter and Gamble and Johnson and Johnson barely registered a drop. However, the ones that I was expecting some good returns were down significantly; in particular, Google and Amazon, both still down around 7-8%. Overall, the portfolio is down around 5.6% now, with roughly 1% of that happening as of today. Of course, I will continue to monitor this as we get further in the course. As with all decisions in the stock market, it is important to not make decisions hastily and based on emotion. I typically prevent taking too much of a loss by putting in stop losses. This also ensures that I am pretty much guaranteed to take out the emotion of the decision.
References
Imbert, B., & Gibbs, A. (2018, 11 October 18). Dow tumbles over 500 points, bringing 2-day losses to more than 1,300 points. CNBC. Retrieved from https://www.cnbc.com/2018/10/11/us-markets-focus-on-wall-street-rout-as-it-batters-global-markets.html
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Forums / Week 3 Forum / Update Portfolio Results / Week 3 - M.Pleasants - Portfolio Update |
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New! Week 3 - M.Pleasants - Portfolio Update Matthew Pleasants(Oct 15, 2018 4:39 PM)- Read by: 4 Before I continue further in my portfolio update I need to make a correction. In my previous week 1 forum post on selecting the stocks and style of the portfolio. I incorrectly stated one of the stocks I would be purchasing is the Honda-Fiat, but it is actually just Honda stock I am purchasing. The Chrysler stock is actually a combination of the Chrysler-Fiat. To give a clearer picture on how I purchased the stocks was $100,000-dollar limit on each stock. Not every stock was exactly at $100,000.00 and as we all know that prices of stocks are not at flat rate most of the time. In my chart provided below you can see that the range of shares purchase range and the price of the stocks range as well. Entering into week 3 I have not made any changes as I will look at making changes around mid to the end of week 4. My overall gains currently are experiencing a negative gain of $1,447.44 and in percentage terms I am at a negative 14% overall. Going with an aggressive approach of strictly stocks I knew there was a chance of losing money but I am going for a bigger return margin. Sticking with the original 10 stocks would be desirable but changes will be made when/if necessary. The stocks being negatively affected on do not surprise me as there has been negative news press over the companies or the whole industries over the last few weeks. In the automotive industry they are negatively impacted by the tariffs. The two companies that are doing well kind of shock me as Blackberry in past have been struggling but they did announce the new direction and innovation emphasis on the company, and GW Pharmaceuticals is doing well even though the private industry for marijuana is booming.
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